In a recent executive order, President Donald Trump has temporarily reinstated the duty-free status for imported goods valued under $800, reversing a prior decision to eliminate this exemption. This measure will remain in effect until the U.S. Department of Commerce establishes a system capable of efficiently processing and collecting duties on low-value items.
The initial removal of the de minimis exemption, which allowed packages valued below $800 to enter the United States without incurring duties or undergoing customs inspections, was part of a broader strategy to impose a 10% tariff on Chinese imports. This policy change, which took effect on February 4, 2025, led to significant disruptions in logistics and e-commerce sectors. The U.S. Postal Service temporarily halted acceptance of parcels from China and Hong Kong, and businesses faced increased compliance burdens.
The de minimis provision has been instrumental for e-commerce platforms, particularly those based in China, such as Shein and Temu. These companies have utilized the exemption to ship millions of low-cost packages directly to U.S. consumers without incurring import duties. In the fiscal year 2024 alone, over 1.36 billion shipments entered the U.S. under this provision.
Trade experts have noted that the temporary reinstatement acknowledges the current lack of infrastructure to manage the vast volume of low-value imports. Timothy Brightbill, a trade lawyer at Wiley Rein, commented, “The executive order seems to recognize that, at least for now, the U.S. has not established the necessary systems to handle the large and growing volume of low-value goods imported from China.”
The administration has indicated that the suspension of the de minimis exemption will remain until the Commerce Department confirms that adequate systems are in place to process inspections and levy duties efficiently. This move aims to balance the need for effective trade enforcement with the practical challenges of managing a high volume of low-value imports.
As the situation evolves, businesses and consumers are advised to stay informed about potential changes to import regulations and prepare for adjustments in shipping and pricing structures.