The De Minimis Rule for US Imports

A guide to understanding the 2025 changes and implications for businesses

What is the De Minimis Rule?

The De Minimis rule is a customs provision that allows goods valued under a certain threshold to enter the United States duty-free and with minimal customs procedures. This provision, codified under Section 321 of the Tariff Act of 1930, has been a significant facilitator for international e-commerce and small businesses engaging in cross-border trade.

Important 2025 Update: Significant changes to the De Minimis rule have been implemented for 2025, particularly affecting imports from China and other countries subject to special tariffs. These changes dramatically affect e-commerce businesses and importers.

Value Threshold

The standard De Minimis threshold for most countries remains at $800 per person, per day in 2025, but with significant exceptions and new restrictions.

Documentation

2025 brings stricter documentation requirements, including mandatory 10-digit HTS codes and detailed product descriptions.

Processing

New dual-track entry system implemented in 2025, with "Basic" and "Enhanced" processing paths depending on shipment risk factors.

Major Changes to De Minimis in 2025

Executive Order Impact

Executive orders signed in 2025 have eliminated duty-free De Minimis treatment for imports from China and Hong Kong. Starting May 2, 2025, these imports face significant new duties regardless of value.

February 4, 2025

Initial executive order eliminating De Minimis exemption for Chinese goods signed, creating immediate market disruption.

February 7, 2025

Temporary reinstatement of De Minimis exemption to allow customs authorities time to implement new systems.

April 2, 2025

Executive order formally eliminating De Minimis treatment for China and Hong Kong, effective May 2, 2025.

April 9, 2025

Duty rate for low-value postal shipments from China increased to 120%, with per-item fees of $100 starting May 2, 2025.

June 1, 2025

Per-postal item fee increases to $200 for shipments from China and Hong Kong.

Key Changes Summary

Country-Specific Restrictions: De Minimis eliminated for China and Hong Kong.
Tariff Overlaps: Items subject to Section 201, 232, or 301 tariffs no longer eligible for De Minimis treatment regardless of value.
Documentation: Enhanced requirements for all shipments, including mandatory 10-digit HTS codes.
Dual-Track System: New processing pathways based on risk assessment and country of origin.
Higher Duties: New 120% duty rate for low-value Chinese imports plus per-item fees.

2025 Tariff Structure for Chinese Imports

Impact on Businesses in 2025

E-Commerce Disruption

The 2025 changes have dramatically altered the landscape for e-commerce platforms that relied on the De Minimis provision for their business models:

Platforms like Temu and Shein face significantly higher costs for Chinese-origin goods.
Small and medium businesses experience higher compliance burdens with new documentation requirements.
Shipping times have increased due to more complex customs processing.

"The end of De Minimis for Chinese goods represents the most significant change to e-commerce import structures in decades, forcing businesses to completely rethink their supply chains and pricing models."

Cost Increases by Product Category (2025)

Product Category	Pre-2025 Cost Structure	2025 Cost Structure	% Increase
Consumer Electronics	Duty-free under $800	120% duty + $100-200 fee	150-200%
Apparel & Fashion	Duty-free under $800	120% duty + $100-200 fee	130-180%
Home Goods	Duty-free under $800	120% duty + $100-200 fee	140-190%
Beauty Products	Duty-free under $800	120% duty + $100-200 fee	120-170%
Toys & Games	Duty-free under $800	120% duty + $100-200 fee	160-210%

Winners in 2025

U.S. Manufacturers: Reduced competition from low-cost Chinese imports
3PL & Fulfillment Centers: Increased demand for U.S.-based inventory solutions
Non-Chinese Suppliers: Competitive advantage over Chinese counterparts
Customs Brokers: Higher demand for expertise in navigating new rules

Losers in 2025

Chinese Export Platforms: Significantly higher costs and processing times
U.S. Consumers: Higher prices for previously inexpensive Chinese goods
Small Importers: Increased compliance costs and administrative burden
International Postal Services: Reduced volume of Chinese parcels

De Minimis: Historical Perspective

Evolution of De Minimis Value

Year	De Minimis Threshold	Key Changes
1938	$5 for gifts, $1 for other items	Initial implementation of De Minimis concept
1978	$5	No change despite inflation
1993	$200	Increase as part of NAFTA implementation
2016	$800	Significant increase under Trade Facilitation and Trade Enforcement Act
2025	$800 with exclusions	Elimination for China/Hong Kong, exclusions for Section 201/232/301 items

De Minimis Package Volume Growth

2025: Country Comparison

United States ($800 standard) 100%

Australia ($1,000 AUD) ~83% (Based on typical FX)

Canada ($150 CAD) ~14% (Based on typical FX)

European Union (€150) ~20% (Based on typical FX)

China (¥50) ~1% (Based on typical FX)

Business Adaptation Strategies for 2025

U.S. Fulfillment Centers

Import in bulk with a single formal entry, then distribute domestically. This approach consolidates customs processes and leverages economies of scale.

Cost Impact: High initial investment, lower per-unit costs

Supply Chain Restructuring

Relocate manufacturing or sourcing to countries not impacted by Section 201/232/301 tariffs or the China-specific restrictions.

Cost Impact: Medium to high transition costs, potential long-term savings

FTA Utilization

Leverage Free Trade Agreements by ensuring products meet rules of origin requirements, potentially avoiding or reducing duties.

Cost Impact: Low implementation costs, substantial duty savings

Foreign Trade Zones

Utilize U.S. Foreign Trade Zones (FTZs) to defer, reduce, or potentially eliminate customs duties on products before they formally enter U.S. commerce.

Duty deferral until goods leave the FTZ
Potential for duty reduction through manufacturing in FTZs
No duties on exports from FTZs

Best for: High-volume importers with consistent inventory needs

Product Redesign

Modify product specifications, materials, or manufacturing processes to shift to different HTS classifications with lower duty rates.

Material substitution to avoid targeted tariff categories
Adjusting manufacturing steps to qualify under different HTS codes
Product specification changes to qualify for exemptions

Best for: Manufacturers with design flexibility

Tariff Calculator Tool

Use our comprehensive U.S. Tariff Calculator to determine the exact impact of the 2025 De Minimis changes on your specific products and import strategy.

Access Tariff Calculator

Future Outlook: De Minimis Beyond 2025

Policy Trends

Continued Scrutiny: Increased oversight of De Minimis shipments expected to continue beyond 2025
Potential Threshold Adjustments: Possible reconsideration of the $800 threshold for all countries
Technology Integration: Enhanced data collection and AI-powered risk assessment systems
International Pressure: Trading partners may push for reciprocity in De Minimis thresholds

Potential Changes

"The future of De Minimis will likely involve more sophisticated risk-based approaches rather than blanket thresholds, with technology playing a key role in determining which shipments receive expedited treatment."

Expert Predictions for 2026 and Beyond

Expanded Country Restrictions: Potential extension of De Minimis restrictions to additional countries beyond China
E-Commerce Integration: Direct API connections between major e-commerce platforms and customs systems for real-time compliance
Threshold Adjustments: Possible lowering of the general $800 threshold for all countries
Supply Chain Shifts: Accelerated movement of manufacturing from China to Vietnam, Malaysia, and other Asian countries
Tariff Consolidation: Streamlining of various tariff structures to simplify cross-border e-commerce

Frequently Asked Questions

Does the De Minimis rule still apply to all countries in 2025?

No. While the $800 threshold remains for most countries, China and Hong Kong are specifically excluded as of May 2, 2025. Additionally, goods subject to Section 201, 232, or 301 tariffs are no longer eligible for De Minimis treatment regardless of their value or country of origin.

What documentation is required for De Minimis shipments in 2025?

Even for eligible De Minimis shipments, the documentation requirements have increased. You must now provide accurate 10-digit HTS codes, detailed country of origin information, and comprehensive product descriptions. Vague descriptions will likely result in shipments being flagged for formal entry.

How do I determine if my products are subject to Section 201, 232, or 301 tariffs?

You'll need to research the specific HTS code for your product and check whether it appears on any of the tariff lists. Section 301 tariffs primarily affect goods from China, Section 232 covers steel and aluminum products from various countries, and Section 201 impacts products like solar panels and washing machines. A customs broker or our Tariff Calculator can help determine your exposure.

What is the dual-track entry system implemented in 2025?

The new system creates two processing paths for shipments: "Basic" and "Enhanced." Basic processing applies to low-risk shipments well under the $800 threshold and not from countries of concern. Enhanced processing applies to shipments near the $800 threshold, from countries with targeted tariffs, or containing sensitive goods. Enhanced processing requires more documentation and is likely to involve more scrutiny.

Can I still ship multiple $800 packages to avoid formal entry?

This practice, known as "structuring" or "splitting," is now under intense scrutiny. Customs has implemented new systems to detect patterns of multiple shipments to the same recipient. If detected, all related shipments may be required to undergo formal entry, and penalties may apply. The rule is technically one shipment per person, per day, but enforcement has tightened significantly in 2025.

Conclusion: Navigating the New De Minimis Landscape

The 2025 changes to the De Minimis rule represent a fundamental shift in U.S. import policy, particularly for goods originating from China. Businesses must adapt quickly to these new realities by reassessing their supply chains, fulfillment strategies, and pricing models.

While these changes create challenges, they also present opportunities for businesses that can successfully pivot. Companies that develop robust customs compliance programs, diversify their sourcing strategies, and leverage technology solutions will be best positioned to thrive in this new environment.

Staying informed about ongoing policy developments will be crucial as the implementation of these changes continues to evolve throughout 2025 and beyond.

Calculate Your Import Duties

Sources & Further Reading

U.S. Customs and Border Protection: Section 321 De Minimis Entry Information
Official CBP guidance on the De Minimis rule and Section 321 entries, particularly relevant for e-commerce.
19 U.S. Code § 1321 - Administrative exemptions (Section 321)
The official text of Section 321 of the Tariff Act of 1930, as amended, outlining the De Minimis provision.
H.R.644 - Trade Facilitation and Trade Enforcement Act of 2015
The legislation that raised the De Minimis threshold from $200 to $800.
USTR: Section 301 Investigations & Tariff Actions
Information from the U.S. Trade Representative on Section 301 tariffs, including lists of affected goods.
Congressional Research Service: Section 321 De Minimis U.S. Imports (IF11341)
A Congressional Research Service report providing background and analysis on the De Minimis rule (as of its publication date).

Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.

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