Source: Supply Chain Dive
Date: 23rd December 2025

The end of duty-free low-value shipments reshapes cross-border e-commerce, compliance and cost structures.

The United States has collected more than USD 1 billion in additional duty revenue in 2025 following the phased removal of the de minimis exemption, according to the national customs authority. The exemption previously allowed imports valued below USD 800 to enter the country duty-free and tax-free, a mechanism widely used by direct-to-consumer sellers and cross-border e-commerce platforms to reduce landed costs.

De minimis volumes surged in recent years, more than doubling between 2020 and 2024, with total shipment values reaching nearly USD 65 billion. However, policymakers raised concerns that the exemption undermined domestic manufacturing, distorted competition, and created enforcement blind spots for unsafe, counterfeit or illicit goods entering the country.

The phaseout began earlier in the year and was accelerated in August, with shipments from China and Hong Kong losing eligibility first. As a result, low-value imports are increasingly being processed through standard customs channels, requiring full documentation, tariff classification and compliance checks. This shift has significantly increased visibility into shipment data.

Customs authorities report that enhanced scrutiny has led to an 82% rise in seizures of non-compliant low-cost goods, including counterfeit products, unsafe electronics and prohibited substances. Officials say the new framework strengthens border security, levels the playing field for domestic businesses, and restores revenue previously lost under the exemption.

The policy marks a structural change for global e-commerce and cross-border logistics, signalling a move away from ultra-light regulatory treatment for small parcels and towards a more controlled, transparent import environment.

The removal of the de minimis exemption increases processing requirements for low-value parcels, driving higher administrative complexity and potentially longer transit times. Shippers must adapt routing, documentation and pricing models as volumes shift from express parcel flows to more traditional customs-cleared channels.

Importers from the U.S. face higher landed costs, new duty liabilities and stricter compliance obligations. While this increases cost pressure, particularly for e-commerce and fast-fashion players, it also improves supply chain transparency and reduces unfair competition from duty-free foreign goods.

Exporters from countries shipping low-value goods into the U.S. must reassess their market entry strategies, pricing, and fulfillment models. Those relying heavily on de minimis treatment may need to consolidate shipments, relocate inventory closer to end markets, or absorb higher compliance and tariff costs to remain competitive.