The end of the US $800 de minimis rule and what it means for international ecommerce merchants 

Summary: 

Starting August 29, 2025, the U.S. will eliminate the $800 de minimis rule, an exemption that has long allowed low-value shipments to enter the country duty-free and with minimal paperwork. This change will have major implications for brands, 3PLs, and marketplaces that have relied on this threshold—especially those using postal networks, drop shipping models, or DDU shipping strategies. In this post, we break down what’s changing, who’s impacted, and what it means for your international logistics strategy. 

What is the de minimis exemption? 

De minimis is a trade threshold that sets the maximum value below which imported goods can enter a country without incurring duties, taxes, or full customs formalities. It’s a Latin phrase meaning “about minimal things,” and in global trade, it’s used to streamline the clearance of low-value shipments, reducing the administrative burden on customs agencies and importers alike. 

Governments impose de minimis thresholds to: 

• Reduce customs congestion for high-volume, low-value imports 

• Minimize enforcement costs for goods that generate little revenue 

• Encourage small-scale trade and ecommerce 

• Support consumers by lowering the cost of buying goods online from abroad 

By allowing low-value parcels to bypass duties and complex paperwork, de minimis policies help keep international shipping fast and affordable especially for direct-to-consumer ecommerce. 

What is the de minimis threshold in the US and how is it changing?  

The U.S. significantly increased its de minimis threshold from $200 to $800 in 2016 as part of the Trade Facilitation and Trade Enforcement Act (TFTEA), one of the most substantial customs modernization efforts in decades. The goal was to simplify trade, promote ecommerce growth, and allow U.S. Customs and Border Protection (CBP) to focus its resources on higher-risk shipments. The de minimis exemption has allowed goods valued under $800 USD to enter the U.S. without incurring duties, taxes, or full customs clearance. It’s been a cornerstone of direct-to-consumer ecommerce models for years, especially for low-margin or fast-turnaround products. 

However, the high U.S. threshold has increasingly come under scrutiny. While most developed countries maintain de minimis thresholds between €22 and $150 USD, the U.S.’s $800 threshold became an outlier and a target for exploitation. Global sellers began routing millions of low-value packages into the U.S. every day, often structured to fall just under that limit. U.S. Customs & Border Protection (CBP) reported that de minimis shipments into the United States ballooned from 636 million parcels in FY2020 to 1.36 billion in FY2024, with an estimated value of $64.6 billion. On average, CBP processed over 3.7  million de minimis shipments per day. 

The Trump administration has raised concerns about abuse of this system, particularly around drug trafficking, transshipment, origin masking, and uncollected revenue. As of July 30, the White House has announced they will be removing the de minimis exemption for all countries as of August 29. This will have major impacts on international ecommerce.  With the pace of change, companies must stay up to date on all tariff and trade policy changes in this new age of international commerce.  

How does this impact merchants and 3PLs shipping into the U.S.? 

For global merchants and logistics providers, the end of the U.S. de minimis rule represents a significant shift in how low-value shipments must be handled. Brands that have long relied on simplified entry processes will now need to implement full customs clearance regardless of shipment value. This change impacts not only compliance costs but also delivery speed, customer experience, and operational complexity. 

Globally, many 3PLs, DTC brands, and marketplaces have structured their fulfillment models around routing lightweight, low-cost products directly into the U.S. under the $800 de minimis threshold. Now, these shipments will require full entry, duties and taxes, and accurate classification which dismantles the low-friction trade flow many businesses have depended on. 

We’re already seeing a shift among B2B brands previously using DDP models that are now converting to U.S. based inventory. By pre-positioning stock at domestic 3PLs, these companies aim to avoid postal clearance limitations, reduce landed cost variability, and streamline fulfillment for retail buyers and distributors. 

This is especially critical for international B2B stockers  or foreign manufacturers or brands shipping inventory into the U.S. to supply retailers, distributors, or store chains. Think: Canadian apparel brands fulfilling to U.S. boutiques, or European beauty brands stocking American retail partners. 

Without the cost and friction advantage of de minimis, many emerging or mid-size brands may be deterred from testing the U.S. market, limiting assortment diversity and reducing competitive variety for U.S. consumers. 

Example: Canada-based merchants 

Take Canada as a case study: in 2024, more thanover 85% of exporting Canadian enterprises sold to the United States, and a significant share of that percentage includes ecommerce shipments. The U.S. is by far Canada’s largest trading partner, and ecommerce cross border flows have surged in recent years due to proximity and favorable duty treatment under de minimis. 

Many Canadian fulfillment providers and 3PLs have optimized their operations around this north-to-south flow—shipping goods under $800 directly into the U.S. via ground or air consolidations. Additionally, Canada has long used the United States sophisticated, high volume, air shipping network by transshipping shipments through the US to the rest of the world to optimize shipping costs.  With the new rule, these merchants will: 

• Face higher costs from duties, taxes, and brokerage fees. 

• Experience longer customs clearance times, especially if their systems aren’t integrated with U.S. entry requirements. 

• Need to restructure fulfillment operations, including harmonized tariff system (HTS) classification, landed cost estimation, and diversifying with a Canada to World outbound carrier network instead of relying solely on the US market.  

What happens to businesses using postal shipping to reach U.S. customers? 

Postal shipments have traditionally been a loophole-friendly channel under de minimis. Postal networks work for lightweight, low-value products leveraging the mail carrier network, enabling them to fly under the radar of customs. They often lack the customs networks and trade/compliance capabilities necessary for seamless cross border operations as they were not needed with de minimis entry in place. Many don’t have a way to process customs payments. Many international sellers used national posts and ePacket-type services to ship small parcels directly to consumers while skirting taxes and formal declarations. 

That window is now closing. 

With the new rule in place: 

• U.S. Customs will require informal or formal entry for all shipments, regardless of carrier with no exemptions. 

• Postal carriers may be slower to adapt to new filing and clearance requirements. 

• Costs are predicted to rise as brokers, compliance intermediaries, and platforms fill in the gaps. 

Businesses relying on postal shipments will need to start investing in scalable logistics infrastructure or risk customs holds, added fees, and degraded customer experience. 

How will this affect drop shippers and marketplace sellers? 

Drop shipping models often rely on overseas vendors or fulfillment hubs to ship directly to U.S. customers without involving the merchant in logistics or compliance. Most of these packages previously fell under the $800 limit. Platforms like Shein and Temu reportedly sending millions of parcels into the U.S. each week under the $800 threshold to avoid duties. This rule change is part of a broader effort to promote trade reciprocity and crack down on what the U.S. government sees as loopholes benefiting non-reciprocal trading partners. 

Key consequences: 

• Merchants may now be liable for duties and taxes—even if they don’t physically handle the product. 

• Third-party sellers on marketplaces (like Amazon or Shopify) will need better oversight of their fulfillment partners and supply chains. 

• U.S. customs will be watching for origin fraud and under-declaration, both of which carry stiff penalties under IEEPA enforcement. 

For global DTC brands, transparency across the fulfillment network will be more critical than ever. 

What does this mean for companies still shipping DDU into the U.S.? 

Delivery Duty Unpaid (DDU) has long been a default for many ecommerce brands looking to simplify shipping. But under the new rules, relying on customers to pay duties on delivery becomes even riskier: 

• More surprise fees at the door = lower conversion rates and higher return rates. 

• Carriers may refuse DDU shipments if proper clearance documentation isn’t included. 

• Customs brokers will now require full entry-level data (including HTS codes, product descriptions, and tax IDs), which DDU shippers often lack. 

Shifting to DDP (Delivered Duty Paid) models or at minimum, investing in real-time landed cost calculation will be essential to preserving customer trust. 

How will de minimis changes impact international returns? 

Returns are an often-overlooked piece of the de minimis conversation. Under the existing exemption, many merchants could avoid re-importing duties when an item shipped under $800 was returned. But with the exemption eliminated, returns will become more complex and costly—particularly when goods cross borders a second time. 

• There is now a risk of double taxation: duties may be charged on both the original shipment and the return unless merchants have a clear customs strategy in place. 

• Merchants will need to explore duty drawback programs or build avoidance mechanisms into the returns process. 

• Customs authorities may require evidence that the item was previously imported and exported, adding documentation and processing time. 

In short, returns will no longer fly under the radar. They’ll need to be treated with the same compliance rigor as outbound shipments to avoid financial and operational setbacks. 

What should businesses do now to prepare? 

The August 29 change is seismic, but not insurmountable. Here’s how shippers can get ahead of it: 

• Map your de minimis exposure: Identify which SKUs, shipping lanes, and fulfillment flows rely on sub-$800 entries. 

• Review your supply chain: Understand where your products originate and how they’re being routed into the U.S. Consider relocating fulfillment operations if they are currently structured around de minimis advantages. 

• Strengthen compliance infrastructure: Invest in tools that support HS code classification, automated customs documentation, and landed cost calculation. 

• Explore DDP solutions: Evaluate providers or software that help deliver full landed cost visibility at checkout and ensure duties are prepaid. 

• Train your team: Ensure logistics, ops, and finance teams understand new requirements—including HS code accuracy, customs documentation, and tax implications. 

• Reevaluate pricing strategies: Build duties and taxes into your pricing or use localized market pricing to maintain margins and conversion. 

• Communicate with customers: Let customers know about changes to shipping timelines, pricing, or checkout expectations. Transparency will reduce churn and improve experience. 

Conclusion 

The end of the de minimis exemption marks a fundamental shift in U.S. trade policy and ecommerce logistics. Whether you’re a merchant, 3PL, or platform, now’s the time to re-evaluate your shipping model and prepare for a more complex, compliance-driven landscape. 

If you have questions about how to navigate de minimis changes for your company, talk to one of our experts. We’re here to help.