De Minimis Exemption Is Gone and a New Fee Is Coming
If you import inventory in small batches, the rule that made that work is gone, and a guide updated on August 17, 2026 lays out where things now stand. The de minimis exemption, which let shipments worth $800 or less enter the United States duty-free, ended for China and Hong Kong on May 2, 2025 and for every other country on August 29, 2025. Customs and Border Protection made the suspension indefinite by regulation effective June 24, 2026.
I know a lot of owners who built their whole sourcing model around that threshold, and watching the math stop working is genuinely stressful. So let us walk through what it costs, what is still coming, and which adjustments are worth your time this quarter.
The Rule That Quietly Ended
Section 321 of the Tariff Act of 1930 created the exemption, and Congress raised the ceiling from $200 to $800 in 2016. That timing mattered, because it lined up with the boom in cross-border ecommerce. Small sellers learned to keep each shipment under the limit and skip formal customs entry entirely.
The volume got enormous. Roughly four million packages a day came in this way, which works out to well over a billion shipments a year. Treasury estimated the uncollected duties at $10 billion to $15 billion annually, and that number is a large part of why the exemption became politically vulnerable.
What a $500 Order Costs Now
Numbers make this concrete. Consider a $500 shipment of phone accessories from China under the current structure.
| Line item | Amount |
|---|---|
| Combined duty at roughly 37.5% | About $187.50 |
| Customs brokerage per entry | $50 to $100 |
| Total added cost | $237.50 to $287.50 |
One more cost is still ahead. A separate per-parcel handling fee on low-value postal shipments is scheduled to take effect no later than November 1, 2026. If any part of your supply chain still moves through postal channels, price that in before your holiday buy.
The timing is awkward, because it lands right as fourth-quarter inventory arrives. Founders already watching demand signals in the July retail sales report should assume higher input costs and softer consumer patience are arriving together.
Adjustments That Actually Help
Consolidation is the first lever. Brokerage is charged per entry, so combining four small shipments into one larger one spreads that fixed cost across far more units. The duty rate does not change, but your per-unit overhead drops.
Second, ask suppliers for delivered duty paid pricing. Under DDP terms the supplier handles customs and you get one predictable number, which makes your unit economics far easier to plan. It also moves the paperwork burden off your desk.
Third, compare origins on total landed cost rather than sticker price. Because no country enjoys a de minimis advantage anymore, the differentiators are tariff rate, trade agreement eligibility and freight. Goods qualifying under USMCA can enter at a 0% reciprocal tariff, which makes near-shoring to Mexico worth a serious look.
Finally, revisit your shipping partners. Costs and transit times have both shifted, and the ecommerce shipping market has changed enough that last year’s quote is probably stale. Official guidance on entry requirements is available through CBP’s import and export resources.
Where This Goes From Here
Plan on permanence. A statutory repeal is set to follow on July 1, 2027, and several congressional proposals would codify the elimination outright. Nothing in the current landscape suggests a return to duty-free small parcels.
One caution worth naming plainly. Routing Chinese-made goods through a third country without genuine transformation is illegal transshipment, and it carries federal penalties including seizure. Country of origin still drives your rate, so classify honestly and document carefully.
Watch your pricing response as well. Passing the full increase to customers in one move tends to hurt conversion, especially with inflation in 2026 still shaping how carefully people spend. Staged increases usually hold better.
Questions Small Importers Keep Asking
Does the exemption still apply to any country?
No. It ended for China and Hong Kong in May 2025 and for all remaining countries that August.
What is the flat postal duty option?
Carriers may apply a flat $200 per item instead of standard rates. That is punishing on cheap goods but occasionally cheaper on higher-value items, so verify which method was used.
Do I need a customs broker now?
Most small importers do, unless you are prepared to self-file. Budget for the fee on every entry.
Can I still keep shipments under $800 to save money?
There is no longer any duty benefit to doing so. Larger consolidated shipments now cost less per unit.
None of this is welcome news, but it is workable news. The businesses adapting fastest are the ones treating landed cost as a number they manage weekly rather than one they discover at the port.
