De Minimis Rule 2025-2026: End of the $800 Threshold for China Imports
What Is the De Minimis Rule?
The de minimis rule, codified at 19 U.S.C. 1321, allows imports valued at $800 or less per recipient per day to enter the United States free of duty and most formal customs requirements. Congress raised the de minimis threshold from $200 to $800 in 2016 through the Trade Facilitation and Trade Enforcement Act, dramatically expanding low-value e-commerce imports.
For nearly a decade, de minimis became the backbone of cross-border e-commerce. Chinese platforms such as Shein, Temu, and AliExpress shipped billions of parcels directly to US consumers under the de minimis exemption, avoiding both duties and the Section 301, Section 232, and IEEPA tariffs that apply to formal entries.
That ended on May 2, 2025, when Executive Order 14256 took effect, eliminating de minimis treatment for goods of Chinese and Hong Kong origin. The order was signed on April 2, 2025 and announced as part of the broader reciprocal tariff framework. CBP guidance is published at cbp.gov/trade/basic-import-export/de-minimis-shipments.
What Changed on May 2, 2025
Executive Order 14256 directed that all imports of articles that are products of the People’s Republic of China or Hong Kong are no longer eligible for the administrative exemption from duty and entry requirements provided by 19 U.S.C. 1321. The order applies regardless of the shipment’s value or transportation mode.
Before May 2, 2025: A $50 dress shipped from Shenzhen to a US consumer entered free of duty under de minimis. No formal entry, no broker, no HTS classification, no tariff payment.
After May 2, 2025: The same $50 dress requires formal entry. Applicable duties include MFN rate, Section 301 List 4A (7.5%), and IEEPA reciprocal duty. The shipment requires HTS classification, country of origin declaration, and customs broker filing.
The change affects approximately 1.4 billion shipments per year that previously entered as de minimis from China and Hong Kong, according to CBP volume statistics from fiscal year 2024.
Treatment of Postal vs. Non-Postal Shipments
The Executive Order created two parallel tracks for low-value China shipments based on transportation method.
Non-postal shipments (express carriers, ocean LCL, air freight): Subject to standard formal or informal entry procedures. Importer of Record must be identified, HTS classification must be declared, and all applicable duties (MFN, Section 301, Section 232 if applicable, IEEPA reciprocal) must be paid. CBP entry filing is required through ACE.
Postal shipments (USPS via international postal channels): Subject to a special duty regime under EO 14256. Carriers transporting these shipments must collect and remit either an ad valorem duty equal to the applicable IEEPA reciprocal rate or a flat per-item duty. The flat fee was set at $100 per item from May 2, 2025 through May 31, 2025, and increased to $200 per item starting June 1, 2025.
Carriers must elect one method (ad valorem or flat) and apply it consistently to all postal shipments. Election is filed with CBP and bonds are required to secure the duty obligation.
Impact on E-Commerce Sellers
Direct-to-consumer Chinese sellers face three operational choices following the de minimis elimination.
Option 1: Continue direct-from-China shipping with formal entry. Each parcel becomes a formal entry. Costs increase by approximately $4 to $25 per parcel in entry fees, broker fees, and bond costs, plus the underlying tariff. Transit time increases by 2 to 5 days due to entry processing.
Option 2: Move inventory to US fulfillment. Sellers ship in bulk to US warehouses (often Amazon FBA, 3PL warehouses, or Section 321 fulfillment centers in Mexico that lost their model). Duties are paid once at bulk import, eliminating per-parcel entry overhead. Transit time to consumer drops to 1 to 3 days.
Option 3: Shift sourcing to non-China origins. De minimis remains available for shipments from Vietnam, India, Mexico, and other non-China origins, subject to ongoing reviews. Some sellers have shifted production or trans-shipment to Vietnam to preserve de minimis eligibility, though CBP is actively enforcing substantial transformation rules to prevent origin laundering.
Section 321 Programs Affected
Section 321 of the Tariff Act is the statutory basis for de minimis treatment. CBP operates several specialized Section 321 programs that have all been affected by the China exclusion.
Entry Type 86: An ACE manifest-based entry type designed for low-value e-commerce. Type 86 entries from China or Hong Kong are no longer permitted as of May 2, 2025. Type 86 remains available for shipments of non-China origin.
Section 321 Data Pilot: CBP’s data-sharing pilot with major e-commerce platforms. The pilot continues but excludes China-origin shipments from de minimis eligibility regardless of platform participation.
Foreign Trade Zone admission: China-origin goods admitted to FTZs are subject to applicable duties at withdrawal. The FTZ does not preserve de minimis eligibility for goods that lost it under EO 14256.
Compliance Requirements for Importers
US importers and consignees must adapt operations and documentation to the post-de minimis environment.
Importer of Record (IOR) designation: Every formal entry requires a designated IOR with a CBP Importer Number (IRS EIN-based or assigned). Foreign sellers without US presence typically use Foreign Importer of Record arrangements through their customs broker.
Customs bonds: Formal entries require either a Single Transaction Bond or a Continuous Bond. Continuous bonds (10% of estimated annual duties, minimum $50,000) are economical for importers entering more than 5 to 10 shipments per month.
HTS classification: Every product must be classified under the Harmonized Tariff Schedule. Misclassification is the leading cause of CBP penalties under 19 U.S.C. 1592.
Recordkeeping: Importers must retain entry records for 5 years per 19 U.S.C. 1508. CBP audit programs increasingly target post-de minimis e-commerce importers.
Frequently Asked Questions
Does de minimis still apply to imports from countries other than China?
Yes. Imports from Vietnam, India, Mexico, Canada, Europe, and other non-China origins continue to qualify for de minimis treatment up to $800 per recipient per day, subject to the standard exclusions for alcohol, tobacco, and goods requiring federal agency review.
What about Hong Kong-origin goods?
EO 14256 specifically includes Hong Kong in the China exclusion. Hong Kong-origin goods receive the same treatment as mainland China.
Are gifts from China still duty-free under $100?
The bona fide gift exemption (19 U.S.C. 1321(a)(2)(A)) for gifts up to $100 between individuals technically remains in statute, but CBP has narrowed enforcement and gifts from commercial e-commerce sellers do not qualify.
Can I split a shipment to stay under $800?
For non-China shipments, splitting one order into multiple parcels to stay under $800 is permitted only if each parcel goes to a different recipient or arrives on different days. Manipulative splitting to evade duty is treated as a customs violation. For China-origin shipments, $800 is no longer relevant since de minimis does not apply.
What is the tariff on a $50 China parcel after May 2, 2025?
Depends on the HTS code. A typical apparel item faces approximately 16-32% MFN, plus 7.5% Section 301, plus IEEPA reciprocal duty (variable). Total ad valorem duty often exceeds 50% of declared value, plus formal entry fees of $20-40.
How ExFreight Supports Post-De Minimis E-Commerce Logistics
ExFreight provides bulk freight rates and integrated US customs brokerage for e-commerce sellers transitioning from direct-to-consumer parcel shipping to bulk inventory placement in US warehouses. Our licensed brokers file Type 11 informal entries, Type 01 formal entries, and Type 86 entries (for non-China origins) and manage Section 301, Section 232, and IEEPA reciprocal duty declarations.
Get an instant ocean LCL or air freight rate from any China origin port to US destinations, with full landed cost calculation including all applicable tariffs, at exfreight.com/get-a-quote.
