What Is De Minimis?
De minimis is a Latin phrase meaning "of minimal importance." Under US import law (19 U.S.C. § 1321), shipments with a declared value of $800 or less were historically exempt from import duties and could clear customs under a simplified informal entry process.
During the cross-border e-commerce boom, this rule was used at massive scale — sellers shipped individual orders under $800 directly to US consumers, paying zero duty and bypassing formal entry requirements. At its peak, over 1.3 billion packages per year entered the US through this channel, roughly 60% originating from China.
Policy Timeline
-
Feb4 February 2025First announcement: China/HK de minimis removed
President Trump signed an executive order eliminating the $800 de minimis exemption for goods from China and Hong Kong. The order was briefly suspended days later due to CBP systems not being ready, but the policy direction was set.
-
May2 May 2025Suspension formally takes effect for China & Hong Kong
The de minimis exemption was formally removed for goods originating from mainland China and Hong Kong. All low-value packages from these origins now require a proper customs declaration and are subject to applicable duties.
-
May12 May 2025 — Geneva Trade TalksUS-China tariff truce — de minimis NOT restored
The US and China reached a phase agreement in Geneva, and some general tariff rates were rolled back temporarily. However, the de minimis suspension was not reversed. Tariff levels and de minimis policy are two separate tracks — a tariff reduction does not restore the exemption.
-
Aug29 August 2025Global suspension: all countries lose the $800 exemption
The US extended the suspension to all countries worldwide. Regardless of declared value, country of origin, or shipping method, small packages no longer qualify for the $800 duty-free threshold. Full customs entry and duty payment is required for all inbound goods.
-
202620 February 2026White House confirms: global suspension continues
A new presidential order confirmed that duty-free de minimis treatment remains suspended for all countries. The administration signalled no timeline for restoration.
-
May2 May 2026T86 clearance channel permanently closed
The T86 informal entry type (Section 321 Entry Type 86) — the simplified CBP clearance pathway that low-value e-commerce packages relied on — was officially abolished on 2 May 2026. Every sub-$800 import must now go through a full formal or informal customs entry. There is no remaining fast-track or back-door route.
-
Jun24 June 2026CBP Federal Register rule: non-postal suspension is now indefinite
US Customs and Border Protection published a final rule in the Federal Register (2026-12670): Indefinite Suspension of the De Minimis Exemption for Merchandise Arriving through All Modes other than the International Postal Network. This elevates the suspension from an executive order into formal federal regulation for all commercial courier channels (FedEx, UPS, DHL, etc.). Reversing it now requires an Act of Congress or a new executive order — a far higher bar than before.
Impact on Cross-Border E-commerce Sellers
The end of de minimis is a structural shock for sellers relying on direct-from-China shipping — but it also creates opportunities for those already operating compliantly.
Direct Hits
- Every order now needs a full customs entry, extending clearance time
- Duty costs on low-price items spike sharply ($20 item may incur $4–$6 duty)
- Under DAP terms, buyers receive unexpected tax bills — return/refusal rates rise
- Postal channel viability drops significantly (flat fee up to $200/item for China origin)
- Temu/Shein direct-mail model severely disrupted; some categories pulled
Operational Pressure
- Stricter customs declaration requirements (accurate HS codes and descriptions required)
- Higher risk from undervaluation — seizure and fines if caught
- Greater working capital tied up in US warehouse inventory
- Full logistics cost structure needs recalculation
Structural Opportunities
- Sellers with US local warehouse inventory gain competitive edge
- DDP-compliant operators are preferred by marketplaces and buyers
- Sellers who have shifted supply chain to Vietnam/Mexico get a temporary buffer
- High-price, high-margin categories absorb duty costs more easily
Platform & Model Impact Comparison
| Platform / Model | Previous De Minimis Reliance | Current Status |
|---|---|---|
| Temu (direct mail model) | Extreme reliance | Shifted to US warehouse model; prices up significantly |
| Shein | High reliance | Accelerating US supply chain; some items up 30–50% |
| Amazon FBA (China sellers) | Moderate reliance | Higher inbound freight + duty costs; FBA model relatively stable |
| DTC / independent store (DDP) | Low | Minimal impact; duties already in pricing |
| US local warehouse fulfillment | None | Unaffected; competitive position improves |
Impact on US Individual Buyers
For ordinary consumers the most direct change is: the era of duty-free cheap goods from China is over. How much you feel it depends entirely on which shipping method the seller uses.
✅ DDP — Duties Pre-paid (seamless for buyer)
- Seller or carrier pre-pays import duties
- Product prices may be slightly higher
- You sign for the package with no extra payment
- Smooth clearance, normal delivery
- Experience similar to before the change
⚠️ DAP — Buyer Pays Duty on Arrival
- Package held at US Customs on arrival
- You receive a CBP duty notice
- Must pay the duty before the parcel is released
- Package will be returned or seized if unpaid
- Poor experience; high refusal/abandonment rate
How Duties Are Calculated: Real Examples
Duty liability varies significantly by shipping channel and product category. After the exemption ended, customs applies a "collect all applicable duties" approach. Below are reference rates for common categories via commercial courier channels.
Express / Commercial Courier (UPS / FedEx / DHL)
Duties are assessed based on the product's HS code. Rates vary widely by category:
| Product Category | Example Declared Value | Reference Duty Rate | Estimated Duty |
|---|---|---|---|
| Clothing (T-shirts, jackets) | $30 | ~20% | ~$6 |
| Leather goods (bags, belts) | $80 | ~35% | ~$28 |
| Phone / electronics accessories | $50 | ~25% | ~$13 |
| Small home goods | $40 | ~20–30% | ~$8–$12 |
* Actual rates depend on HS classification and current effective tariffs. Check the USITC Harmonized Tariff Schedule for specific product rates.
Postal Channel (USPS / China Post)
The postal channel now uses a tiered flat-fee structure based on the applicable IEEPA tariff rate for the country of origin, rather than a uniform fixed fee. Tier breakdown:
| Applicable IEEPA Rate | Flat Fee per Item | Notes |
|---|---|---|
| Below 16% | $80 / item | Lower-tariff origin countries |
| 16% – 25% | $160 / item | Mid-tariff origin countries |
| Above 25% | $200 / item | China / Hong Kong origin typically falls here |
The Solution: DDP Duty-Paid Shipping
After de minimis ended, the most practical and widely-used solution is DDP (Delivered Duty Paid) shipping — where the carrier or seller pre-pays import duties before the parcel is released to the recipient.
DDP vs DAP: The Core Difference
✅ DDP — Duty-Paid Delivery (Recommended)
- Carrier / seller pre-pays import duty before dispatch
- Recipient signs with no extra payment on delivery
- Clearance handled by a specialist team — efficient
- Duty cost is transparent and can be built into product pricing
- Return and refusal rates significantly lower than DAP
- Best fit for most B2C cross-border e-commerce scenarios
⚠️ DAP — Buyer Pays at Destination
- Import duty is paid by the recipient at destination
- Buyer may receive an unexpected duty bill
- Complex payment process often leads to abandoned packages
- Storage charges accrue while package is held
- Not suitable for consumer-facing retail shipments
JunFeng DDP USA Line — How We Handle It
Most channels on JunFeng's USA express line operate on a DDP basis, with duties included in the all-in freight quote:
- Full declaration support: We help clients provide accurate HS codes and product descriptions to minimise customs examination risk
- Transparent duty estimates: Duty cost is communicated before dispatch so it can be factored into product pricing
- Specialist clearance team: We monitor customs status throughout and handle exceptions promptly
- Last-mile delivery included: Once cleared, local delivery is arranged — recipients have a seamless experience
Frequently Asked Questions
Common questions about the end of the US de minimis exemption
In four stages: China/HK goods: 2 May 2025; all countries globally: 29 August 2025; T86 clearance channel permanently closed: 2 May 2026; CBP published Federal Register rule 2026-12670 making non-postal channel suspension indefinite under formal regulation: 24 June 2026. Restoring it now requires an Act of Congress or new executive order. Short-term restoration is considered very unlikely.
No. General tariff reductions from trade talks do not automatically restore de minimis. The de minimis suspension is a separate administrative track. As of 29 June 2026 it remains in effect and has been codified in federal regulation. Packages from China still require full declaration and duty payment.
It depends on the channel:
• Express/commercial couriers: Full customs entry; duties calculated by HS code — no $800 threshold;
• Postal channel: Flat fee tiers under the White House postal rule; China/HK origin typically $200/item.
On JunFeng's DDP line, duties are included in the freight charge — recipient pays nothing extra.
Three main impacts: ① Every order needs a full customs entry — clearance takes longer; ② Duty costs on low-price goods rise sharply, compressing margins; ③ Platforms relying on direct-mail (Temu, Shein, AliExpress) are hit hardest. Solutions: switch to a DDP freight channel, build duty costs into product pricing, or pre-position inventory in US warehouses.
No. Since 29 August 2025, the $800 duty-free threshold is suspended globally. Whether you feel it depends on the seller's shipping model: if the seller ships DDP, duties are pre-paid and you sign with no extra charge; if the seller ships DAP, you will receive a CBP duty notice and must pay before the package is released.
DDP (Delivered Duty Paid) means the carrier or seller pre-pays the destination country's import duties, so the recipient receives the package with no additional payment required. After de minimis ended, DDP is the most practical solution — duty costs are transparent and predictable, the recipient experience is unchanged, and clearance is handled by specialists. JunFeng's USA line operates on DDP for most channels.
No. Since 29 August 2025, the US has suspended duty-free de minimis for all countries globally. Some sellers have rerouted shipments through third countries, but US Customs applies strict country-of-origin rules and substantial-transformation requirements. Misdeclaring origin carries serious legal risk including seizure and fines.
