Understanding the "De Minimis" Rule in the USA and Its Recent Changes

The "de minimis" rule in the United States refers to the threshold under which imported goods can enter the country without incurring duties or taxes and with simplified customs procedures. Since 2016, this threshold has been set at $800 per shipment, allowing businesses and consumers to receive low-value goods with minimal regulatory hurdles. However, recent policy changes have significantly altered how this rule is applied, particularly for certain countries.

Impact on the U.S. Customs System

With the increasing volume of low-value imports, the de minimis provision has played a significant role in shaping the workload of U.S. Customs and Border Protection (CBP). In 2015, the number of shipments qualifying under the de minimis threshold was approximately 153 million. By 2023, this number had skyrocketed to over 1 billion shipments annually. This surge has raised concerns about enforcement challenges, particularly in monitoring product safety, intellectual property violations, and trade compliance.

The recent executive orders removing the de minimis exemption for countries like China, Canada, and Mexico introduce new complexities for CBP. Previously, low-value shipments from these nations could bypass standard customs procedures. Now, these packages must undergo the same scrutiny as higher-value imports, including duties, tariffs, and more extensive documentation requirements. This change is expected to strain the customs processing system, increasing administrative costs and potentially leading to delays at ports of entry.

Potential Impact on E-commerce

The most immediate impact of the de minimis changes will be felt in the e-commerce sector, particularly for retailers and platforms that rely on direct-to-consumer international shipments. Companies like Shein, Temu, and other China-based retailers have thrived by leveraging the de minimis exemption to ship low-cost goods to U.S. customers without incurring additional tariffs. With the new rules, these businesses face higher costs and possible disruptions in logistics.

Moreover, the additional customs documentation requirements—such as providing 10-digit Harmonized Tariff Schedule (HTS) codes and electronically filing compliance certificates—could add complexity for e-commerce sellers and logistics providers. Small businesses that import inventory under the previous de minimis framework may see increased costs and delays, impacting their pricing structures and profitability.

Conclusion

The elimination of the de minimis exemption for key trading partners marks a major shift in U.S. trade policy. While the intent is to strengthen enforcement against illicit goods and ensure fair competition, the broader implications include increased regulatory burdens for customs officials, potential supply chain delays, and higher costs for consumers and businesses alike. As these changes take effect, e-commerce companies and importers will need to adapt their strategies to navigate the evolving trade landscape.