U.S. De Minimis Threshold Removal 2025: Impact on E-Commerce Shipping, Duties & Customs Clearance

On 30th July 2025, the U.S. Government announced a significant change to import regulations: the suspension of the $800 USD de minimis threshold for all shipments, effective 29th August 2025.

This move which was expected to come into force in 2027 has arrived almost two years earlier than anticipated. The change affects all commercial shipments entering the United States, including those sent via courier and postal networks.

Read the Executive Order for full details.

What Does the US De Minimis Removal Mean for E-Commerce Sellers?

From 29^th August 2025, shipments valued under $800 USD will no longer be exempt from duties and taxes. This means all shipments, regardless of value and delivery method will have duties and taxes applied.

• Courier shipments will face full customs clearance immediately from 29th August 2025. They will have duty and tax applied based on the product’s Harmonised Tariff Schedule (HTS) classification and country of origin. These rates vary by product category and trade partner, with some reciprocal tariffs now ranging from 10% to 40%, and certain categories subject to higher scrutiny.

• Postal shipments will temporarily follow a simplified, flat-rate duty structure until 8th February 2026, based on the originating country’s tariff rate:
  • Tariff <16% → $80 per item
  • Tariff <16% → $80 per item
  • Tariff >25% → $200 per item
  • Note: These rates apply per item, not per parcel
• From March 2026, postal shipments will also require full customs clearance and will be processed in the same way as courier shipments.

Why Has the US Removed the De Minimis Threshold Now?

The policy shift follows earlier moves to remove de minimis treatment for goods originating from China and Hong Kong. While not unexpected, the accelerated timeline is catching many businesses off guard, especially those shipping to U.S. customers.

Shipping to the US After De Minimis Removal:
4 Strategies for E-Commerce Brands

While every business will need to adapt, here are four options to consider:

1. Transition to Delivery Duty Paid (DDP)

With DDP, the seller pays duties and taxes upfront. This ensures goods clear U.S. customs without delays and removing surprises and simplifying delivery for the customer.

Considerations with DDP:

• Adjust product pricing to reflect duties/taxes, or absorb the cost if margins allow
• Capture duties/taxes at checkout to maintain transparency
• Expect higher operational control and faster delivery times compared to other options

Recommendation: Moving to DDP shipping is likely the most reliable method to maintain delivery speed and customer satisfaction, especially during the initial transition period.

2. Continue with Delivered Duty Unpaid (DDU) or Delivered at Place (DAP) Shipping

Under DDU or DAP shipping, the responsibility for paying duties and taxes lies with the recipient. Recent guidance suggests that couriers may not release goods from the export gateway (e.g. the UK) until payment is confirmed by the recipient. This is intended to reduce the risk of shipments being delayed in the U.S. or returned due to unpaid duties.

If you choose to continue with DDU/DAP, we strongly recommend:

• Clearly communicate to your U.S. customers that they will be liable for duties and taxes prior to delivery
• Preparing for potential delays and increased delivery friction, particularly during the early transition period

In addition to the duty and tax amounts, couriers will apply customs brokerage, processing, and handling fees. These are charged on top of the duty and tax and may vary by carrier and shipment profile.

3. Use the First Sale Rule (For Brands with a U.S. Entity)

Brands with a U.S. entity may be able to leverage the first sale rule, allowing goods to be imported at an intercompany price, potentially reducing customs exposure.

Requirements:

• A robust intercompany agreement
• Proof of sale (invoices, purchase orders) between your UK and U.S. entity, with a clear flow and evidence of transaction flows
• Legal or tax advice to validate the structure

4. Fulfilment from within the U.S.

Local fulfilment allows goods to be imported at cost and distributed domestically, potentially reducing customs exposure and enabling you to reach your U.S. customers faster.

Things to consider:

• U.S. 3PL capacity is currently strained due to tariff and regulatory changes
• Space is in high demand, leading to rising storage costs
• Managing multiple stock locations adds significant operational complexity

Additional Considerations for E-Commerce Sellers

• Customs Clearance Delays: Expect longer processing times due to the surge in shipments requiring formal clearance
  
• Extra Fees: Delivery partners are likely to introduce new surcharges to cover additional admin and handling. These charges will be applied in addition to duties and taxes
  
• Customer Expectations: Update delivery estimates and manage communication with U.S. customers carefully to protect your brand reputation

The removal of the de minimis threshold is a significant shift in U.S. import policy, and it will affect e-commerce businesses of all sizes. Acting early to review your shipping strategy, pricing, and fulfilment will be key to minimising disruption and keeping customers happy.

FAQs: US De Minimis Threshold Removal 2025

What is the US de minimis threshold?
The de minimis threshold was a rule allowing goods valued under $800 USD to enter the U.S. without duties or taxes. From 29th August 2025, this exemption will be removed for all shipments, including those sent by courier and post.

Why is the US removing the de minimis rule now?
While the policy was originally expected to take effect in 2027, it has been brought forward to 2025. The move aligns with recent trade policy changes targeting imports from China and aims to level the playing field for domestic businesses.

What are the new import duty rates for low-value shipments?
Until February 2026, postal shipments will follow a flat-rate structure based on the originating country’s tariff rate. Rates range from $80 to $200 per item. Courier shipments will be taxed based on HTS classification and country of origin immediately.

Will DDP shipping avoid delays at US customs?
Yes. Delivery Duty Paid (DDP) ensures that all taxes and duties are prepaid by the seller, which typically allows for smoother customs clearance and faster delivery to customers.

Can I still use DDU or DAP shipping methods?
You can, but customers will be responsible for paying duties and taxes before delivery. This may lead to shipment delays, customer dissatisfaction, or returns if duties aren’t paid promptly.

What’s the best way for UK brands to ship to US customers now?
There’s no one-size-fits-all answer. Brands with strong logistics support may choose to switch to DDP, while others may explore local fulfilment in the US or restructure pricing to account for additional costs.

Disclaimer: This update from International Logistics Group Ltd (ILG) has been curated from various public sources and believed to be accurate and reliable at the time of publication. Our goal is to provide correct and up-to-date information. However, ILG does not assume any responsibility or liability for any inaccuracies, errors or omissions in the content provided.