For years, U.S. shoppers and ecommerce brands relied on the “de minimis” rule, which allowed low-value imports of $800 or less to enter the country duty-free with minimal customs paperwork. That approach has now ended.
Effective August 29, 2025, the U.S. government ended de minimis duty-free treatment through an executive order. From that date, small parcels valued at $800 or less are no longer automatically exempt from duties or customs processing. Instead, they are subject to the same rules that apply to higher-value imports.
A six-month transition period is in place. During this time, foreign postal operators and carriers can choose to pay a flat duty per parcel, generally $80, $160, or $200 depending on country of origin. After February 28, 2026, all shipments must go through full value-based duty collection.
This change did not come out of nowhere. Earlier in 2025, U.S. Customs and Border Protection (CBP) proposed rule changes to tighten de minimis. These included requiring more shipment data, demanding 10-digit tariff codes, and excluding imports tied to certain trade actions such as Sections 201, 232, and 301 tariffs. The executive order accelerated what many already expected.
Key Takeaways
- Duty-free entry for parcels under $800 has ended as of August 29, 2025.
- A six-month transition period with flat duty rates ends February 28, 2026.
- All low-value parcels must go through full customs declarations and duty assessments.
- Brands must plan for duties, paperwork, and potential shipping delays.
- MAI Fulfillment provides in-country solutions that protect margins and customer experience.
How Import Duties Works Now
The system that once allowed small parcels to enter duty-free now applies full customs scrutiny. Any parcel entering the U.S., regardless of value, may be subject to import duties. That means brands can no longer assume low-value shipments will escape charges and paperwork.
Low-value shipments must now meet the same reporting and paperwork requirements as higher-value imports. Carriers and foreign postal services can, for a limited time, pay a set flat duty per parcel instead of calculating duties based on value. This option eases the transition but will not last beyond February 28, 2026.
Once the transition ends, all shipments must be declared and duties assessed on declared value and product classification. Brands and carriers face higher compliance costs, system upgrades, and more complex processes. Incorrect product codes or undervaluation now carry greater risk of penalties and delays, making data and classification accuracy essential.
Who Is Impacted
- Overseas Ecommerce Sellers: Direct-to-consumer brands outside the U.S. that ship small parcels directly to American customers will feel the impact immediately. They will have added costs and the process becomes more complex.
- U.S. Consumers: Shoppers who buy from overseas websites may see higher prices, longer delivery times, and more frequent duty or brokerage charges.
- Logistics Providers: Carriers and postal operators must update systems, processes, and services to manage the new duty environment. Some suspended or limited U.S. parcel services as the change took effect.
- U.S. Brands Using Cross-Border Fulfillment: Companies that rely on overseas warehouses to reach U.S. customers will need to reassess costs, compliance, and delivery speed.
What It Means for Ecommerce Brands
Ecommerce brands now face a new operating environment that demands tighter cost control and more strategic planning. Import duties apply even to low-value shipments, so brands must decide whether to build those costs into pricing or switch to Delivered Duty Paid (DDP) shipping to give customers a clear view of total cost. Carriers also require more paperwork, detailed product data, and accurate tariff codes, making compliance a critical part of daily operations.
Supply chains may need restructuring. For companies with meaningful U.S. sales, keeping inventory in the United States can help offset the risk of higher duties, cut delivery times, and reduce customer dissatisfaction. Bonded warehouses or duty deferral programs can also be considered for brands looking to manage cash flow more effectively.
Finally, communication is essential. Brands should be transparent about potential duty costs, explore consolidation of shipments to minimize per parcel expenses, and evaluate whether DDP or Delivered Duty Unpaid (DDU) models best fit their customer base. Taken together, these operational adjustments ensure brands protect margins while maintaining a consistent customer experience.
Broader Market Impacts Based on Change in Import Duties
Large cross-border marketplaces face higher costs and may raise prices or adjust shipping models. These companies, which once benefited from duty-free low-value shipping, now must adjust operations and pricing to account for new duties.
Domestic U.S. sellers could gain a competitive advantage as overseas shipments become more expensive and slower. This shift may tilt consumer preference toward local options that can offer faster shipping and fewer unexpected charges.
At the international level, trade negotiations or disputes may follow as other nations respond to the change. Governments and industry groups are already signaling concern, which could shape future policy and global ecommerce dynamics.
How MAI Fulfillment Can Help International Brands
At MAI Fulfillment, we help international brands adapt to the end of de minimis with scalable solutions. By positioning your inventory within our U.S. network, you avoid surprise duties, speed up delivery, and keep costs predictable.
Our in-warehouse teams handle product classification and paperwork, ensuring every order is processed correctly. We also support Delivered Duty Paid models that remove uncertainty for your customers.
This approach gives you confidence that duties are managed, shipping times remain fast, and your focus can stay on growing the business rather than navigating customs challenges.
The end of de minimis marks a major shift in U.S. cross-border ecommerce. What was once a frictionless path for low-value imports is now a regulated, duty-bound process. Ecommerce brands outside the U.S. must adapt quickly by reviewing shipping models, pricing, and fulfillment strategies. For many, partnering with a U.S. fulfillment provider will be the most reliable way to maintain speed, protect margins, and keep customers satisfied.
Frequently Asked Questions About Import Duties
What was the de minimis threshold before this change?
When did the change take effect?
Is there a transition period?
Yes. For six months, foreign postal operators and carriers can pay a flat duty per package. After February 28, 2026, all shipments must follow full duty collection.
Does this apply to all countries?
How will this affect consumers?
What can brands do to adapt?
Consider U.S. fulfillment centers, build duties into pricing, and use DDP shipping to control the customer experience.
Does this affect sales tax?
Keep your U.S. orders fast, accurate, and duty-compliant.
MAI Fulfillment positions your inventory where it matters most.
Partner with us to cut costs and deliver a consistent customer experience.
