The de minimis rule has long been a key part of U.S. customs policy. It allowed companies to import low-value shipments under $800 without paying duties or submitting full customs paperwork. For years, this policy helped streamline e-commerce and cross-border trade. But now, the U.S. government has announced the end of the de minimis rule, changing the way businesses handle imports.
This shift affects thousands of companies, especially those relying on international suppliers for small parcels. Without this exemption, shipments will now face duties, stricter customs documentation, and more oversight.
If you rely on imported goods, you need to understand how these changes fit into broader minimis regulations and what steps to take for compliance. Keep reading to learn what this change means, why it happened, and how you can stay ahead.
What Was the De Minimis Rule?
The de minimis rule was created to make customs procedures faster and less costly for low-value imports. Originally, it applied to very small shipments, but in 2015 the threshold increased to $800 per shipment.
This meant foreign sellers could ship products directly to U.S. consumers without paying tariffs, creating a competitive edge over domestic retailers. However, as global e-commerce grew, the rule became a loophole. It made it easier for companies to bypass duties and harder for customs officials to monitor shipments for compliance and safety.
Why the De Minimis Rule Is Ending
The U.S. government is ending the rule for several reasons:
- Security risks: Authorities linked the exemption to the inflow of illicit products, including counterfeit goods and dangerous substances such as fentanyl.
- Fair competition: Domestic businesses argued that the policy gave overseas companies an unfair advantage.
- Revenue and compliance: Ending the exemption will increase tariff collection and bring all importers under the same compliance requirements.
The Department of Homeland Security explained that closing the loophole is a step toward protecting consumers and strengthening national security.
What This Means for Businesses
The removal of the de minimis rule means businesses must now:
- Prepare for higher costs on imported goods that previously entered duty-free.
- Submit full customs documentation for every shipment, regardless of value.
- Expect delays and additional scrutiny at borders, particularly for shipments from countries that previously relied heavily on this exemption.
These changes may force companies to rethink supply chain strategies. Some will shift to bulk imports, while others may move fulfillment centers to the U.S. to reduce the impact of minimis compliance costs.
How It Ties Into Regulations
The end of the de minimis rule brings imports into alignment with existing customs and trade regulations under U.S. law. All shipments now fall under the same duty and compliance requirements, giving Customs and Border Protection (CBP) better visibility into trade flows.
This also strengthens enforcement under existing regulations such as the Tariff Act of 1930, which governs duties, and supports broader public health protections enforced by agencies like the FDA for imported products.
For businesses importing food, cosmetics, drugs, or medical devices, this means that product safety and compliance checks will be stricter, and non-compliant shipments are more likely to be flagged or denied entry.
FAQs About the De Minimis Rule
Will this increase shipping costs for all small imports?
Yes. Without the exemption, all shipments under the de minimis rule now face duties and taxes, which will likely increase consumer prices. Costs may also vary depending on the product type and country of origin, so companies should budget for additional customs-related expenses tied to minimis compliance.
Does this mean businesses can no longer import small parcels?
No. You can still import low-value goods, but you must comply with customs rules and pay duties. This change to the de minimis rule may require updating your internal processes and working closely with logistics providers to avoid unexpected delays or penalties.
Will this cause delays in customs clearance?
Yes, at least in the short term. As CBP increases inspections and processes more detailed documentation, shipments could take longer to clear. Over time, businesses that adopt proper compliance procedures under the revised minimis regulations will experience fewer disruptions.
How does this affect regulated products like food, drugs, and medical devices?
Products overseen by agencies such as the FDA will now face closer scrutiny at entry points. Companies importing these goods should ensure they meet all labeling, registration, and safety requirements to prevent rejections or costly holds. The end of the de minimis rule means these products will not bypass customs oversight as they sometimes did before.
Is there any benefit to this change?
Yes. Although it raises costs, it levels the playing field for domestic businesses, increases government revenue, and reduces the risk of counterfeit or unsafe goods entering the U.S. In the long run, this could improve supply chain transparency and consumer trust by reinforcing minimis compliance standards.
Conclusion
The end of the de minimis rule marks a significant change for global trade and compliance. Businesses must adapt to higher costs, new customs requirements, and stricter oversight. The good news is that with the right regulatory guidance, you can stay compliant and keep your operations running smoothly.
At Quality Smart Solutions, we help companies like yours navigate shifting regulations and avoid costly mistakes. Contact us to learn how we can support your compliance strategy.
