On July 30, 2025, U.S. President Donald J. Trump signed an Executive Order that suspends the de minimis exemption for low-value commercial shipments entering the United States. This policy change affects goods valued at $800 or less that are imported through non-postal channels, making them subject to all applicable duties starting August 29.
New Duty Assessment Methods Introduced
For packages shipped through the international postal system, two temporary duty assessment options are being introduced:
Ad valorem duty: Duties will be applied based on the existing tariff rate under the International Emergency Economic Powers Act (IEEPA), depending on the product's country of origin.
Specific duty: A fixed duty ranging between $80 and $200 per item, also based on IEEPA tariff rates. This method will be available for six months before transitioning fully to the ad valorem system.
Policy Objectives and Background
The de minimis provision has allowed low-value shipments to enter the U.S. with minimal oversight and without duties. However, the volume of these shipments has grown significantly—from 134 million in 2015 to over 1.3 billion in 2024. Authorities argue that this growth has placed strain on enforcement resources and created risks related to safety, intellectual property, and regulatory compliance.
According to enforcement data, the majority of seizures made by U.S. Customs and Border Protection (CBP) in fiscal year 2024 involved shipments that entered under the de minimis threshold. These included high volumes of narcotics, counterfeit goods, and other prohibited items.
Remaining Exemptions
The order does not affect exemptions for returning American travelers and personal gifts. Individuals can continue to bring back up to $200 in goods duty-free and receive gifts valued at $100 or less without paying duties, in accordance with existing U.S. law under 19 U.S.C. 1321(a)(2)(A) and (B).
Long-Term Changes Ahead
This executive action builds on earlier steps, including the May 2 suspension of de minimis benefits for goods from China and Hong Kong. Additionally, the One Big Beautiful Bill Act (OBBBA), signed into law earlier this year, will permanently repeal the statutory basis for de minimis treatment by July 1, 2027.
Implications for Businesses
Importers, particularly in e-commerce, may need to reevaluate supply chains and duty planning strategies. Businesses should also consider revisiting compliance procedures to adapt to the new duty framework and mitigate potential disruption.
How CATTS Can Support You
With the suspension of the de minimis exemption, companies engaged in cross-border e-commerce and low-value shipments face increased complexity in duty assessment, customs clearance, and compliance risk. CATTS can support businesses through this transition by offering strategic consulting on duty planning, operational adjustments, and risk mitigation.
Our managed services can handle the increased workload of compliance checks, documentation, and customs data management. Additionally, our EPOS technology suite helps automate broker instructions, validate product data, and track shipment flows, ensuring businesses remain compliant while minimizing delays and operational disruption.
If you're unsure how these changes might affect your operations, reach out. Our team is here to help you move forward with clarity and confidence.
More details and official updates can be found on the White House website.