De Minimis Exemption Ends: What Importers Need to Know in 2026
The days of duty-free imports under $800 are over. The U.S. government has ended the de minimis exemption that previously allowed millions of low-value shipments to enter the country without paying duties or going through formal customs procedures.
If you import goods valued under $800—whether you're an e-commerce seller, small business, or individual consumer—this change directly affects you.
Key Takeaways
- The $800 de minimis exemption is suspended for all non-postal shipments as of August 29, 2025
- International postal shipments must use the ad valorem duty method starting February 28, 2026
- All low-value imports now require ACE entry filing, even shipments under $800
- New bond requirements apply to importers and carriers
- Two duty calculation methods: ad valorem (IEEPA tariff rate) or flat-rate ($80 per item for high-tariff origins)
What Was the De Minimis Exemption?
Section 321 of the Tariff Act allowed goods valued under $800 to enter the U.S. duty-free without formal customs entry. This exemption was designed to reduce administrative burden for truly low-value shipments.
Over time, however, the exemption became a loophole. E-commerce giants shipping directly from overseas warehouses used it to avoid duties on billions of dollars in imports. An estimated 1 billion+ packages entered the U.S. under de minimis provisions in 2024 alone—many from China.
What Changed?
Executive Order 14324, "Suspending Duty-Free De Minimis Treatment for All Countries," eliminated the exemption citing national security concerns and the need for effective tariff collection.
Timeline of Changes
| Date | Change |
|---|---|
| August 29, 2025 | De minimis suspended for non-postal shipments |
| August 2025 | ACE stops accepting Section 321 and Type 86 entries |
| February 28, 2026 | Postal shipments must use ad valorem duty method exclusively |
What This Means for Non-Postal Shipments
All shipments—regardless of value—now require formal or informal entry in ACE:
- No more Section 321 filings: ACE rejects all Section 321 manifest filings via EDI
- No more Type 86 entries: Previously used for de minimis e-commerce, now rejected
- Bond requirements apply: Even shipments under $2,500 need importation bonds
What This Means for International Postal (Mail) Shipments
Packages arriving via international postal services (foreign postal carriers) have a temporary exception but must pay duties through one of two methods:
1. Ad Valorem Tariff (Required by Feb 28, 2026)
- Duties calculated based on the IEEPA tariff rate of the country of origin
- Standard tariff schedule applies
2. Flat-Rate Tariff (6-month option, ending Feb 2026)
- $75 per item for countries with IEEPA tariff under 25%
- $80 per item for countries with IEEPA tariff 25% or higher (China, etc.)
Carriers must choose one methodology and apply it consistently each calendar month. They must also report country-of-origin data for every postal shipment.
Who Is Most Affected?
E-Commerce Sellers
Businesses that ship directly from overseas warehouses to U.S. customers face the biggest disruption:
- Temu, Shein model disrupted: Companies shipping $20-$50 products from China relied heavily on de minimis
- Marketplace sellers: Third-party sellers on Amazon, eBay, etc. who dropship internationally
- Small importers: Anyone ordering products from Alibaba/overseas suppliers for resale
Consumers
Individual consumers will notice changes when:
- Ordering from international retailers: That $50 order from overseas now incurs duties
- Personal imports: Gifts, samples, and small purchases from abroad
- Delivery times: Formal entry requirements may slow clearance
Logistics Providers
Carriers and customs brokers must:
- File entries for every low-value shipment (massive volume increase)
- Post international carrier bonds for postal shipments
- Update systems to calculate and collect applicable duties
How Are Duties Calculated Now?
For Non-Postal Shipments
Standard tariff rates apply based on:
- HTS classification of the product
- Country of origin
- Any additional duties (Section 301, Section 232, IEEPA, etc.)
For example, a $100 product from China might face:
| Duty Type | Rate | Amount |
|---|---|---|
| Standard HTS duty | 10% | $10 |
| Section 301 tariff | 25% | $25 |
| IEEPA tariff | 10% | $10 |
| Total duties | $45 |
What was previously duty-free now incurs significant costs.
For International Postal Shipments
Until February 28, 2026, carriers can choose either:
- Ad valorem: Actual tariff rate based on origin and product
- Flat rate: $75-$80 per item regardless of value
After February 28, only ad valorem applies.
What Do Importers Need to Do?
Immediate Actions
Review your supply chain
- Identify which shipments previously used de minimis
- Calculate the duty impact on your cost structure
Update your customs process
- Ensure you have ACE filing capability
- Obtain or verify your importer bond
- Work with a customs broker if needed
Rethink sourcing strategies
- Products from high-tariff origins (China) now face full duty burden
- Consider domestic or lower-tariff sourcing alternatives
- Evaluate inventory consolidation to reduce entry volume
Update pricing models
- Factor duties into landed cost
- Decide whether to absorb or pass through costs to customers
For E-Commerce Businesses
- Calculate Delivered Duty Paid (DDP) pricing for international orders
- Collect duties at checkout to avoid customer surprises
- Review dropshipping arrangements—direct-from-China models are now far less profitable
- Consider fulfillment from U.S. warehouses instead of international dropship
The Silver Lining: Why This Creates Opportunity
While this change creates short-term pain, it also levels the playing field:
Fair Competition
Domestic manufacturers and U.S.-based retailers no longer compete against duty-free overseas sellers. A product made in Ohio competes on equal terms with one shipped from Shenzhen.
Better Data
All shipments now go through formal entry, providing:
- More accurate import statistics
- Better tracking of trade flows
- Improved enforcement of product safety regulations
Revenue for Compliance
U.S. customs collected an estimated $287 billion in duties, taxes, and fees in 2025—nearly triple the 2024 amount. This funds enforcement and trade infrastructure.
How Duty Simulator Helps
Navigating the post-de-minimis world requires accurate classification and duty calculation for every shipment, not just high-value ones.
Duty Simulator automates this at scale:
- Instant HTS classification for products of any value
- Accurate duty calculations including Section 301, IEEPA, and all applicable tariffs
- Country of origin analysis to identify lowest-duty sourcing options
- Email integration to process classification requests automatically
- Bulk processing to handle high-volume e-commerce operations
What used to be "too small to worry about" now needs proper classification. Duty Simulator makes that manageable.
Frequently Asked Questions
Does this affect personal imports?
Yes. If you order a $50 item from an overseas retailer, duties now apply. The retailer may collect this at checkout (DDP) or you may receive a customs bill on delivery.
Are there any remaining exemptions?
Very limited. True personal effects (items you're bringing with you while traveling) still have exemptions. Commercial imports under $800 do not.
What happens if I don't file entry for a low-value shipment?
Your shipment will be held. CBP requires formal or informal entry for all non-postal commercial imports regardless of value.
How do I know what duties apply to my products?
Duties depend on HTS classification and country of origin. Use Duty Simulator or consult a customs broker to determine your specific rates.
Will my carrier handle this for me?
For postal shipments, carriers will collect duties using the flat-rate or ad valorem method. For non-postal shipments, you (or your customs broker) must file the entry.
Is there any chance the exemption returns?
While trade policy can always change, the current administration views de minimis as a loophole enabling duty evasion. Reinstatement seems unlikely in the near term.
The Bottom Line
The end of de minimis is the biggest change to U.S. import procedures in decades. It affects everyone from major e-commerce platforms to individual consumers ordering products online.
The winners will be those who adapt quickly:
- Understand their duty exposure
- Automate classification and entry filing
- Adjust pricing and sourcing strategies accordingly
The losers will be those who ignore the change and get surprised by customs holds, unexpected costs, and competitive disadvantage.
Don't let duties catch you off guard. Try Duty Simulator to calculate your true landed costs and stay compliant in the new import environment.
Related Reading
- Global De Minimis Changes 2026: US, EU, and UK Guide — See how all three major markets are eliminating low-value exemptions
- HTS Code Lookup: The Complete 2026 Guide — Now that all imports need classification, master the lookup process
- Import Duty Calculator: How to Estimate Costs Before Shipping — Calculate your true landed costs
- Section 301 Tariffs Explained — Understand the additional duties that now apply to all China shipments
- Top 10 HTS Classification Mistakes — Avoid costly errors on your newly-dutied shipments
- US-India Trade Deal 2026: What Importers Need to Know — Latest tariff developments affecting sourcing decisions
Updated February 2026. For the latest CBP guidance, visit cbp.gov/trade/basic-import-export/e-commerce.