Millions of ecommerce shipments will now face unexpected costs and delays. Here’s what you need to know. For years, the de minimis rule has been a game-changer for ecommerce businesses, allowing imports valued under $800 to enter the United States duty-free.
This exemption enabled sellers to keep prices competitive, streamline fulfillment, and reduce administrative burdens. However, a significant shift has happened.
As of August 29, 2025, the U.S. Customs and Border Protection (CBP) has removed the de minimis exemption for goods imported into the US, regardless of their global origin.
This change carries serious implications for online retailers, logistics providers, and global brands that have relied on this cost-saving mechanism. In 2023 alone, over 770 million shipments entered the U.S. under de minimis, representing a significant portion of cross-border ecommerce transactions.
The loss of this exemption is expected to create substantial disruptions.
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What Changed in the De Minimis Rule?
Previously, the de minimis rule allowed small parcel shipments to bypass duties and undergo a simplified customs clearance process, making direct-to-consumer (DTC) models highly efficient and cost-effective.
Under the latest CBP guidance:
- All affected shipments must now be formally declared. This adds to compliance requirements and administrative burdens.
- Duties will apply to every import, regardless of value. Categories such as apparel and electronics, which have duty rates exceeding 20%, will see major cost impacts. To see more, feel free to have a look at our tariff tracker for more updates and information.
- Longer processing times at customs. Without the expedited clearance provided under de minimis, shipments could face delays due to the sheer amount of goods that now need to be processed additionally, disrupting fulfillment operations and customer delivery timelines.
The CBP has outlined fixed tariff thresholds based on the effective ad valorem rate (IEEPA rate) for the country of origin. This gives businesses a clear indication of how costs will scale:
- IEEPA rate below 16%: $80 duty per item
- IEEPA rate between 16% and 25%: $160 duty per item
- IEEPA rate above 25%: $200 duty per item
That means a $20 item shipped under the previous de minimis exemption could now carry a $80 duty, quadrupling the landed cost for consumers or squeezing profit margins for sellers.
These new duty costs also come on top of formal customs entry fees, brokerage costs, and potential delays, creating a compounding effect that can quickly erode pricing competitiveness for global ecommerce.
How the De Minimis Rule Removal Affects eCommerce Businesses
The removal of the de minimis rule presents several challenges for ecommerce businesses that source from countries outside of the US. Direct-to-consumer brands that depended on this exemption now face higher costs, with additional duties cutting into already thin profit margins.
Additionally, longer customs clearance times are a pressing issue. Formal entry requirements introduce added documentation and potential delays, affecting delivery timelines and customer satisfaction. Increased compliance burdens mean businesses must now navigate a more complex regulatory landscape, requiring expert oversight to avoid penalties or disruptions. Companies that fail to adapt could face severe supply chain bottlenecks, impacting revenue and competitiveness.
Impact of the De Minimis Rule on Dropshipping Models
The removal of the de minimis exemption is especially concerning for dropshipping businesses, which rely heavily on low-cost imports. Dropshipping, where sellers list products online and fulfill orders directly from overseas suppliers, has thrived on the ability to ship goods duty-free. This change will drastically alter cost structures and heavily influence the market landscape.
Dropshipping sellers now have to account for duties on every order, making low-margin products significantly more expensive for customers to import. Additionally, formal customs entry will likely slow delivery times, taking away the advantage of fast, cost-effective international shipping. Businesses dependent on this model may need to reconsider fulfillment strategies, shifting to US-based warehousing or working with logistics partners, like TecEx, who can help navigate the new duty landscape.
Stay Ahead of the De Minimis Rule Removal
The removal of the de minimis exemption is a wake-up call for ecommerce businesses, showing that things can change in a heartbeat. Navigating these changes effectively requires expertise, planning, and the right partners. Businesses that proactively adjust their supply chain strategies and compliance measures will be better positioned to thrive in the new regulatory environment.
Don’t let the suspension of the de minimis rule disrupt your business. Contact our trade compliance experts today to ensure seamless customs clearance, in-time notifications on other changes, and optimized duty management.
