De Minimis 2026: What Changed and What It Means for Importers

De minimis is one of those rules most people have never heard of until it directly affects them — and in 2025 and 2026, it affected millions of importers, e-commerce sellers, and everyday consumers. Here is what changed, why it changed, and what it means for your shipping and sourcing decisions.

What De Minimis Means

De minimis is a legal concept meaning "too small to be worth bothering with." In international shipping, de minimis refers to the threshold below which imported goods are exempt from customs duties, taxes, and formal entry procedures.

If you have ever ordered something from an overseas website and received it without paying import duties, you benefited from de minimis. Below the threshold, packages clear customs quickly, no duty is collected, and the importer avoids the paperwork that formal customs entry requires.

In the United States, this threshold is governed by Section 321 of the Tariff Act. For decades it was set at $200. In 2016, Congress raised it to $800 — one of the highest de minimis thresholds in the world. That $800 threshold still applies to most countries today, with a significant exception.

What Changed in 2025: The China Exception

In early 2025, the US government eliminated de minimis eligibility for shipments from China and Hong Kong. Packages from China and Hong Kong are now subject to duties and tariffs regardless of value — even a $5 package is no longer exempt from duties.

This was a targeted response to a specific problem. The volume of low-value packages entering the US from China had grown to hundreds of millions per year, primarily driven by platforms like Temu and Shein. These shipments were using Section 321 at a scale the rule was never designed for — it was written for occasional personal imports, not high-frequency commercial e-commerce that bypasses normal customs channels.

The change also addressed a tariff enforcement gap. Goods subject to Section 301 tariffs — imposed on broad categories of Chinese goods starting in 2018 — were able to enter the US duty-free by routing them as low-value direct-to-consumer packages. Closing the de minimis pathway for China was, in part, a tariff enforcement measure.

What This Means for Different Types of Importers

The impact depends on where you sit in the supply chain:

• US consumers buying from Chinese platforms: Prices on platforms like Temu and Shein increased as the companies began passing tariff costs through to buyers. Some platforms added explicit import fee line items at checkout. The ultra-low prices that characterized these platforms were partly a function of de minimis access — that dynamic has changed.
• E-commerce sellers drop-shipping from China: The direct ship-to-consumer model from Chinese suppliers is now significantly more expensive. Goods that arrived duty-free under $800 now carry duties that range from 7.5% to 25% or more depending on HS code, plus any Section 301 tariff rates. Many sellers have had to reprice or find alternative sourcing.
• Businesses pre-importing from China: If you import Chinese-made goods in bulk to US warehouses and sell domestically, you were already paying duties before shipping to customers. The de minimis change affects you less directly, though the broader tariff environment still increases your landed cost on Chinese-origin goods.
• Importers sourcing from other countries: The $800 de minimis threshold still applies to goods from Vietnam, Mexico, India, and most other manufacturing nations. These countries still have full Section 321 de minimis access to the US market.

De Minimis Thresholds Around the World

The US is not the only country adjusting its de minimis rules. Here is a snapshot of where major markets stand:

• United States: $800 for most countries; de minimis eliminated for China and Hong Kong
• European Union: €150 — above this value, import VAT and potentially customs duties apply. The EU eliminated its de minimis VAT exemption on all countries in 2021.
• United Kingdom: £135 — VAT applies above this amount. UK rules are stricter than the EU post-Brexit.
• Canada: CA$20 — one of the lowest thresholds in the developed world, meaning most imported goods face duties and taxes in Canada regardless of value.
• Australia: AU$1,000 — one of the most generous thresholds globally. GST applies above AU$1,000 via a simplified low-value import system.
• Japan: ¥10,000 (approximately $65 USD) — relatively low.
• Brazil: $50 USD — purchases above $50 from international sellers face a 20% import tax plus state VAT (ICMS).

Use the De Minimis Threshold Calculator to look up the current threshold for any destination country and see whether your shipment value falls above or below it.

Calculating Your Actual Landed Cost

When a shipment exceeds the de minimis threshold, your actual cost is not just purchase price plus shipping. You need to calculate landed cost — the total cost to get goods into the destination country and to your warehouse or customer.

Landed cost includes:

• Product cost (unit cost × quantity)
• International shipping cost (air freight, ocean freight, or express courier)
• Import duties (based on HS code and origin country — use the official HTS schedule for the destination country)
• VAT or GST (typically applied to product + shipping + duty combined)
• Customs brokerage fees (if using a licensed broker for formal entry)
• Domestic freight (from port or customs clearance point to your facility)

Use the Landed Cost Calculator to estimate total landed cost for shipments to major destination countries across different product categories.

How to Adapt Your Sourcing and Shipping Strategy

If you have been relying on de minimis for China-origin goods, here are the practical paths forward:

• Pre-import inventory to the US. Import in bulk, pay duties once at the port, and fulfill domestically via Amazon FBA, a 3PL, or your own warehouse. The per-unit duty cost in bulk is often lower than individual-package duties, and you avoid customs delays on every individual shipment.
• Diversify sourcing to non-China countries. Vietnam, Bangladesh, India, Mexico, and other manufacturing countries still have full de minimis access to the US market. For many product categories, sourcing has already shifted meaningfully toward Southeast Asia.
• Reprice your products. If you continue sourcing from China, the tariff cost needs to be reflected in your prices. Businesses struggling most are the ones still selling at pre-tariff margins with post-tariff costs. The math does not work without repricing.
• Work with a customs broker for formal entry. If your shipments are regularly above the de minimis threshold, a licensed customs broker ensures HS classification is accurate and duties are minimized. Misclassification can mean overpaying on every shipment or triggering an audit.

What to Watch Going Forward

De minimis policy is in flux globally, not just in the US. Multiple countries are reviewing their thresholds in response to the growth of cross-border e-commerce. The EU is considering further changes to its rules for low-value imports. Canada's CA$20 threshold — unchanged for decades — faces ongoing pressure from domestic retailers who argue it creates an uneven playing field.

For importers and e-commerce sellers, the era of reliably shipping low-value goods internationally without customs friction is ending in key markets. Building landed cost modeling into your sourcing decisions — not just looking at product cost and shipping — is now a baseline requirement for operating profitably in cross-border commerce.