De Minimis Exemption Ended: What US Sellers Must Do (2026)

The US de minimis exemption let shipments worth $800 or less enter duty free with little paperwork. It is no longer available for most imports: it was suspended for all countries from August 29, 2025, the suspension survived the 2026 Supreme Court tariff ruling, and Congress has repealed it for commercial shipments from July 1, 2027.

For small e-commerce sellers, importers and anyone shipping parcels to US customers, this is one of the biggest trade changes in years. Low-value parcels now generally need a customs entry, accurate classification and payment of applicable duties. This guide explains what happened, where things stand as of October 2026, and what to do now. It is general information based on CBP and Federal Register sources at the time of writing; rules in this area change often, so check CBP's latest guidance and speak to a licensed customs broker or adviser before making decisions.

What was the de minimis exemption (Section 321)?

Section 321 of the Tariff Act of 1930, codified at 19 U.S.C. 1321, gave CBP authority to admit low-value shipments free of duty and taxes. Since 2016, the threshold was $800 in fair retail value, per person, per day. Shipments under the limit could enter with basic data rather than a full customs entry.

That made the de minimis exemption the backbone of direct-to-consumer cross-border selling. A seller abroad could ship individual orders straight to US buyers without paying duty, and US sellers who stored stock abroad could fulfill orders the same way. CBP processed well over a billion such shipments a year by the mid-2020s, which became a central argument for ending it: critics said it let goods avoid tariffs and made inspection of unsafe or illegal items harder.

Timeline: how the $800 de minimis rule ended

Date	What happened
May 2, 2025	De minimis ended for goods from China and Hong Kong under executive action.
July 2025	The One Big Beautiful Bill Act became law, repealing the statutory de minimis exemption for commercial shipments effective July 1, 2027.
July 30, 2025	Executive Order 14324 suspended duty-free de minimis treatment for all countries.
August 29, 2025	Global suspension took effect. Low-value shipments became subject to applicable duties.
February 20, 2026	Supreme Court ruled in Learning Resources v. Trump that IEEPA does not authorize tariffs. A new executive order the same day continued the de minimis suspension.
February 24, 2026	IEEPA duties stopped being collected; a temporary 10% tariff under Section 122 began. De minimis remained suspended.
June 24, 2026	CBP published two interim final rules suspending the exemption indefinitely under 19 U.S.C. 1321, one for non-postal shipments and one creating a postal informal entry process.
July 24, 2026	The Section 122 tariff expired and new Section 301 tariffs took its place for many countries. The postal informal entry process took effect.
October 22, 2026	CBP extended certain postal compliance dates to January 20, 2027.
July 1, 2027	Statutory repeal for commercial shipments scheduled to take effect.

Why the Supreme Court ruling did not bring de minimis back

Many sellers hoped that when the Supreme Court struck down the IEEPA tariffs in February 2026, the $800 de minimis rule would return. It did not, for two reasons.

First, the President issued an order the same day continuing the suspension. Second, in June 2026 CBP moved the suspension onto its own footing: the statute gives the Treasury Secretary, through CBP, authority to set and adjust exemptions by regulation, and CBP's interim final rules rely on that authority rather than on IEEPA. Combined with the statutory repeal already scheduled for July 2027, the practical message is clear: do not plan around the exemption coming back.

The ruling did matter in other ways. IEEPA duties already paid became the subject of refund processes run by CBP, and replacement tariffs were later imposed under other laws. If you paid IEEPA duties on imports, including on low-value shipments after the suspension, ask your broker whether you may be eligible for a refund.

What applies to low-value shipments now

With the de minimis exemption suspended, a parcel worth $50 is treated much like a larger shipment. In general:

• Duties apply. The normal duty rate for the product's HTS classification applies, plus any additional tariffs in force for that product and country of origin (for example Section 232 or Section 301 duties).
• An entry is required. Non-postal shipments need a formal or informal entry, usually filed by the carrier or a customs broker.
• Mail has its own process. CBP's postal informal entry process, effective July 24, 2026, covers many mail shipments up to $2,500. Under the rule, the filer must be the owner, purchaser or a licensed customs broker, provides 10-digit tariff classifications, and pays duty on a monthly cycle rather than on delivery.
• Some goods must use formal entry. Items subject to partner government agency requirements, quotas, antidumping or countervailing duties, or certain chapter 98 and 99 provisions are excluded from the postal informal process. CBP delayed compliance for some of these exclusions to January 20, 2027.
• Fees apply. Brokers and carriers charge for filing entries, and on a small parcel those fees can exceed the duty itself.

Exact rates and procedures depend on the product, origin, value and mode of shipping. Check CBP's current guidance and the Harmonized Tariff Schedule for your goods.

Who is affected by the end of the de minimis exemption

• Overseas sellers shipping direct to US consumers. Every order now carries duty and entry costs.
• US sellers who fulfill from abroad. Dropshippers and brands using overseas warehouses lose the duty-free route.
• US small businesses buying supplies from overseas sellers. Low-value purchases of parts, samples and materials now come with duty and possibly broker fees.
• Marketplace sellers. Platforms have changed how they collect or display duties, so check your marketplace's updated policies.
• Consumers. Buyers may face charges at delivery if the seller ships delivered duty unpaid.

What small sellers and importers should do now

1. Classify every product. Assign the correct 10-digit HTS code. Our guide to the HS code on a commercial invoice explains how codes work.
2. Confirm country of origin. Origin drives which additional tariffs apply. It is where the goods were made or substantially transformed, not where you ship from.
3. Calculate landed cost. Add product cost, freight, duty, tariffs, broker fees and carrier fees. Then check your margin per order.
4. Choose DDP or DDU. Decide whether you pay duties (delivered duty paid) or the customer does (delivered duty unpaid). Our Incoterms on invoices guide explains the terms.
5. Pick a filing partner. Ask your carrier or a licensed customs broker how they file entries for low-value shipments and what they charge.
6. Consider consolidation. Shipping stock in bulk to a US warehouse and fulfilling domestically can cost less per unit than paying entry fees on every parcel.
7. Update prices and checkout messages. Tell buyers clearly whether duties are included.
8. Fix your paperwork. Make sure every shipment has an accurate commercial invoice.
9. Keep records. Keep entries, invoices and duty payments; they also matter for any refund claims.

Worked example: landed cost on a $40 order

A small brand ships a $40 cotton tote bag direct from an overseas workshop to a US customer. Before the suspension, the parcel entered duty free. Now, suppose the combined duty and additional tariffs on that product and origin total 20% of the $40 customs value: that is $8.00. If the carrier also charges a $5.00 entry or brokerage fee, the order costs $13.00 more to deliver than before, a 32.5% increase on the product value. The figures here are illustrative; your actual rate depends on classification and origin.

The brand has three choices: raise the price to about $53, absorb part of the cost, or move stock in bulk to a US warehouse so that one entry covers hundreds of bags. For many small sellers, a mix of modest price rises and consolidated shipping works best. See our guide on how to raise prices if you need to communicate an increase.

Commercial invoice requirements after de minimis

Under de minimis, many parcels moved with minimal data. Now the commercial invoice matters on every shipment, because CBP and your broker rely on it to classify, value and clear the goods. A complete commercial invoice includes:

• Seller and buyer (or consignee) names and addresses
• Invoice number and date
• A specific, plain-language description of each item (not "gift" or "parts")
• Quantity, unit price and total value for each line, and the currency
• Country of origin for each item
• HTS code where known
• Delivery terms, such as DDP or DAP

Use the price actually paid. Undervaluation was always illegal, and with every parcel now subject to entry, inaccurate invoices are more likely to cause delays, penalties or seized goods. Our commercial invoice template guide walks through each field, and our comparison of the bill of lading vs commercial invoice explains how the documents work together.

You can build a clean commercial-style invoice in our free US invoice generator: put origin and HTS codes in each item description, delivery terms in the notes, and your order or PO number in the PO field. It creates a PDF; it does not file customs entries, so your carrier or broker still handles the declaration.

Common mistakes after the de minimis exemption ended

Brokers and carriers report the same problems again and again. Avoid these:

• Vague descriptions. "Accessories", "samples" or "gift" will not let anyone classify the goods. Describe what the item is, what it is made of and what it is used for.
• Undervaluing goods. Declaring a lower value to reduce duty is customs fraud. CBP can assess penalties, and shipments can be held or seized.
• Splitting orders. Breaking one order into several parcels to stay under a value threshold no longer helps and may be treated as evasion.
• Wrong country of origin. Shipping from a warehouse in one country does not change where the goods were made.
• Surprise charges for customers. If you ship delivered duty unpaid without saying so, customers may refuse the parcel and you pay to get it back.
• Ignoring partner agency rules. Food, cosmetics, electronics and some other goods may need extra data for agencies such as the FDA or FCC, which can mean formal entry.

Many of these problems were easy to ignore while the de minimis exemption applied, because CBP saw so little data. Now every parcel is checked against an entry, so mistakes surface quickly.

What US buyers and small businesses should watch for

If you buy low-value goods from overseas suppliers for your business, budget for duties and fees on each order and ask suppliers whether prices are delivered duty paid. Check invoices for duty and tariff charges, and keep them with your import records. If a supplier starts adding a duty line, our guide to the tariff surcharge on invoice explains what a fair calculation looks like.

Conclusion

The de minimis exemption is effectively over for commercial shipments into the US. It was suspended globally in August 2025, it stayed suspended after the IEEPA ruling, CBP has made the suspension indefinite by regulation, and the statutory repeal is due on July 1, 2027. Treat duty, classification and paperwork as a normal cost of every cross-border sale. Check CBP's guidance regularly, work with a licensed broker, and make sure every parcel carries an accurate invoice. When you need one, the free invoice generator lets you create a clear, professional PDF in minutes.