Published July 13, 2026. The $800 de minimis duty-free exemption has been globally suspended since August 2025 and is headed for permanent statutory repeal July 1, 2027. This is your action plan.
The End of De Minimis — What Happened
For years, the Section 321 de minimis exemption allowed any shipment valued under $800 to enter the United States duty-free with minimal paperwork. E-commerce sellers, dropshippers, Amazon FBA importers, and small businesses relied heavily on this rule to source goods from China and other countries without navigating the full customs clearance process.
That era is over. Here is the complete timeline:
- May 2, 2025: De minimis suspended for China and Hong Kong origin goods
- August 29, 2025: Suspension extended globally to all countries via Executive Order 14324
- February 2026: Administration reaffirmed and continued the global suspension
- June 24, 2026: CBP issued Interim Final Rules codifying the suspension as indefinite regulatory policy
- July 1, 2027: Permanent statutory repeal takes effect via the One Big Beautiful Bill Act (Section 70531)
What You're Required to Do Now
Every shipment entering the U.S. — regardless of value — now requires one of the following:
Formal Consumption Entry (Type 01): Required for shipments over $2,500. Full HTS classification, ACE filing, duty payment, and customs bond required.
Informal Entry: Simplified process for commercial shipments between $800 and $2,500. Still requires HTS code, duty calculation, and ACE filing — but less documentation than a formal entry.
Section 321 Entry: While the duty-free exemption is suspended, CBP has created new informal entry processes for postal and courier shipments under $800 — but duties, taxes, and fees are now payable on these shipments too.
The practical result: every commercial shipment now needs a customs broker.
The Cost Impact — What Importers Are Actually Paying
The de minimis suspension hits different business models in different ways:
Direct-to-consumer e-commerce (DTC): Shipments that entered duty-free are now subject to: MFN duty + Section 301 tariffs (if China-origin) + Merchandise Processing Fee + potential bond requirements. For a typical $50 garment from China, this might add $15–25 in duty and fees per unit.
Amazon FBA sellers: Bulk shipments to fulfillment centers already required formal entry, but any remaining de minimis strategies for small test orders are now eliminated. All inventory imports need full brokerage.
Dropshippers: The business model that relied on suppliers shipping direct to U.S. customers under $800 without duties has fundamentally broken. Restructuring is required.
Small business importers: Businesses that stayed under $800 per shipment to avoid customs paperwork now need to engage a customs broker for every import transaction.
Your Action Plan — 5 Steps
Step 1 — Classify your products: Get 10-digit HTS codes for everything you import. This determines your duty rate. Use CBP’s HTS search tool or work with a licensed customs broker to ensure accuracy.
Step 2 — Calculate your new landed cost: Add MFN duty + Section 301 tariff (if China-origin) + Merchandise Processing Fee to your product cost. Update your pricing model accordingly.
Step 3 — Get a customs bond: For regular importers, a continuous bond ($50,000 minimum, sized to 10% of your annual duty obligation) is the most cost-effective approach.
Step 4 — Engage a licensed customs broker: Every shipment now needs professional customs clearance. A broker handles ACE filing, duty payment, and CBP communication on your behalf.
Step 5 — Review your supply chain: If your margins can’t absorb the new duty burden, consider: sourcing from non-tariff countries (Vietnam, India, Mexico), restructuring to domestic manufacturing, or adjusting your product mix to lower-duty categories.
Navigate the Post-De Minimis World With FreightClear
FreightClear.com’s licensed customs brokers help e-commerce sellers, FBA importers, and small businesses adapt to the new customs reality — fast, accurate, and cost-effective.
