De Minimis Duty-Free Ends August 29: What Importers Must Know

Beginning August 29, 2025, the United States will suspend the de minimis duty-free exemption for commercial imports under $800 shipped via private couriers such as FedEx, UPS, and DHL. Under the updated trade compliance rules, these low-value shipments will no longer qualify for duty-free entry. Importers must now file proper entries in ACE and pay duties based on either ad valorem rates under the International Emergency Economic Powers Act (IEEPA) or flat-rate duties ranging from $80 to $200 per item, depending on the country of origin’s tariff bracket. This flat-rate option is temporary and will expire six months after implementation.

Postal shipments through the international mail system will continue to receive temporary exemption, but new collection procedures are coming. The move is a response to growing concerns over trade fraud, illicit shipments, and duty evasion. In FY24, U.S. Customs and Border Protection reported that 90% of all seizures came from de minimis shipments, including counterfeit goods, narcotics, and mislabeled imports. The volume of these shipments has surged to over 4 million packages per day. Businesses that rely on low-value imports must now take urgent steps to prepare for new duty calculations, customs documentation, and compliance enforcement. Southern Star Navigation can assist importers with tariff strategies, customs filing, and real-time updates on global shipping regulations.

De Minimis Duty-Free Exemption download pdf. version.