For years, imports valued at $800 or less could enter the U.S. duty‑free without formal import customs declaration - with the recent exception of products from China and Hong Kong.
This de minimis duty exemption for low-value imports will be permanently suspended for all countries, effective August 29, 2025!
This change, announced by the White House on July 30, 2025 via an Executive Order, is expected to have a significant impact on cross-border e-commerce shipments, particularly for merchants shipping low and medium-cost goods from overseas directly to U.S. consumers.
A Brief TIMELINE
Below gives a brief overview of key events related to the U.S. duty de minimis rule:
| 1994 | The U.S. introduces de minimis duty exemption, initially set at $200. |
| 2016 | The Obama administration raises the de minimis threshold to $800. |
| 02.05.2025 | De minimis exemption ends for shipments from China and Hong Kong. |
| 30.07.2025 | Executive Order signed to suspend de minimis for all countries, originally anticipated for 2027. |
| 29.08.2025 | The U.S. will end de minimis duty exemption for all countries. |
Calculation of U.S. Import Duties
For parcels shipped with an express carrier (e.g. DHL Express, FedEx, UPS), duties on all imported goods will be calculated ad valorem on the customs value of the imported goods. The calculation applies both the Most Favored Nation (MFN) rate, based on the product's HS code, and the new reciprocal tariff rate, also known as the International Emergency Economic Powers Act (IEEPA) rate, which is based on its country of origin.
Duty Amount = Customs Value x (MFN Rate + IEEPA Rate)
Temporary Treatment for Postal Shipments
The Executive Order grants the international postal network (e.g. USPS, La Poste) temporarily the option to apply a simplified duty methodology for shipments that were previously eligible for duty de minimis exceptions.
The simplified method applies a fixed amount of customs duty to each imported item. The fixed amount depends on the product’s country of origin and its associated IEEPA rate:
| Country IEEPA rate | Flat duty per item |
| < 16% | $80 |
| Between 16% and 25% | $160 |
| >25% | $200 |
For the initial six months, the postal carrier can choose between the ad valorem calculation and this simplified method, but must use only one method consistently.
Mandatory Country of Origin
The removal of the duty de minimis exemption puts additional emphasis on merchants to know and accurately document the country of origin of their products on every order shipment.
Under U.S. customs law, this means:
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The actual country where the product was manufactured or substantially transformed must be listed — not where it was shipped from or where the merchant business is based.
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The country of origin must be accurately stated on relevant shipping documents and electronic declaration data.
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The country of origin directly influences the duty rate (as explained above).
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Misstating or omitting this information can result in shipment delays, fines, or seizure.
Recommended Actions
To mitigate the impact, we strongly recommend that merchants delivering to the U.S. take the following proactive steps:
- Accurately Assign Country of Origin: Ensure that the country of origin is accurately assigned for every product. This is crucial to avoid unexpected shipping delays and additional costs. Consider reviewing and adjusting your product sourcing if feasible.
- Review and Update U.S. Pricing: Assess and adjust the U.S. retail pricing for any products priced below the $800 threshold today. Use Glopal's online T&D simulator to calculate the impact of duties on your products.
- Optimize Duty Costs: Utilize Glopal’s T&D reverse calculation or B2B2C solution to significantly reduce the impact of any tariffs on average. These tools are designed to help you manage and potentially halve your tariff-related expenses.
Finally, reach out to us in case of any questions. Glopal’s team of experts in international trade and cross-border e-commerce is available to support your team to adapt to those new changes.