What Is De Minimis and Why Everyone’s Talking About It in 2025

If you’ve ever shipped something to the U.S. worth less than $800 and didn’t pay a cent in duties, you’ve benefited from a little rule called de minimis. It’s been the golden loophole of global e-commerce.

But in 2025 the door’s getting slammed shut—especially if you’re sourcing from China or dropshipping to U.S. customers. Here’s what’s changing, why it matters, and how to protect your margins before customs comes knocking.

We’ve already broken down what tariffs are, how they differ from duties and sanctions, and even when tariffs can actually help a country. But now it’s time to ask the real question:

What is De Minimis and why do you need to know about it?

What is De Minimis?

De minimis is a trade rule that lets goods under a certain value enter a country without paying duties or taxes. In the U.S., that magic number is $800—per shipment, per day, per recipient.

What does that mean in plain English?
If someone orders a package worth less than $800, and it arrives in one shipment, it usually clears customs duty-free. No extra paperwork. No delays. No added costs. 99% of the time you don’t even know it has gone through this process.

This loophole has been a game-changer for cross-border e-commerce—especially for platforms like Shein, Temu, and thousands of overseas sellers who ship directly to U.S. consumers. Instead of sending pallets to warehouses and getting hit with tariffs, they send tiny packages to individual customers. It’s fast, cheap, and for years, it flew under the radar.

How It Works (in the U.S.)

The U.S. de minimis rule is written into Section 321 of the Tariff Act of 1930—and while the law itself is ancient, the way it’s used today is very 2025. If an imported package is valued at $800 or less, it can enter the U.S. without duties, without taxes, and without a formal customs entry. That’s the de minimis threshold.

• No tariff
• Minimal paperwork
• Faster clearance at the border

There’s just one catch most people miss which is this exemption applies per person, per day—not per company. That means technically, one individual can receive one duty-free package under $800 per day. It doesn’t mean a business can ship 10 packages to the same address and expect all of them to clear duty-free.

Why It’s Suddenly in the Spotlight (2024–2025)

For years, the de minimis rule flew under the radar, used mostly by individuals and small retailers shipping low-value goods. But in the past few years, massive e-commerce platforms like Shein and Temu turned it into a full-blown business strategy.

In April 2025, the Administration signed a new round of executive orders targeting trade imbalances and perceived unfair advantages. As of May 2, 2025, all de minimis treatment for imports from China and Hong Kong is officially revoked.

That means no more $800 duty-free shipments if the goods are coming from China—even if they’re under the threshold. Those packages will now face full customs review, potential duties, and delays at the port. But that’s not the end of it. The orders also include language to the effect of:

• Ending de minimis for other countries, especially if they’re seen to be helping China bypass restrictions
• Limiting which product types qualify (think: fast fashion, electronics, supplements)
• Increasing enforcement and audits of businesses suspected of manipulating shipment values or recipient addresses.

And it’s not just about where the product ships from—it’s about where it was made. Even if you ship your product from the U.K., Europe, or anywhere outside China, if the item’s country of origin is China, it’s still subject to these new restrictions and tariff treatments. So that handbag made in Guangzhou but warehoused in London? Still on the hook. The origin story of your product now matters more than ever—and customs is watching. De minimis went from a handy trade hack to a serious compliance risk.

What It Means for Retailers, Dropshippers & E-Commerce Brands

If your business relies on low-cost, low-duty imports, this isn’t just a policy update—it’s a flashing red light on your supply chain.

For dropshippers, this is a major blow. Many built their model on Chinese suppliers who ship directly to U.S. customers under the de minimis threshold. That duty-free window is now closed. Expect:

• Longer shipping times (thanks to customs checks)
• Higher landed costs (with duties now applied)
• And in some cases, blocked packages if paperwork isn’t spot-on

For brands warehousing goods overseas and shipping under $800? It’s time to double-check your country of origin declarations. If your item was made in China—even if you’re shipping it from a fancy fulfillment center in the Netherlands—it’s still getting flagged.

For retailers using third-party logistics (3PL) or consolidators, watch out for how they’re declaring value and origin. If your partners are still trying to slide things under the radar, you could be the one footing the bill when a shipment is delayed or duties are reassessed.

And for wholesalers? If you’ve been breaking down bulk orders into multiple low-value shipments to individual stores or customers, expect scrutiny. That “one shipment per person per day” rule is no longer just a technicality—it’s an audit trigger.

Can You Still Use It?

Yes—de minimis is still in play for goods that are:

• Valued under $800
• Shipped to the U.S.
• Not originating from China or Hong Kong

That means if you’re sourcing from places like Vietnam, Mexico, the EU, or even India, and your shipments stay under the threshold, you can still take advantage of the rule—for now.

But here’s the catch: enforcement is tightening, and overuse is a red flag. If you’re:

• Sending multiple daily shipments to the same address,
• Declaring suspiciously low values,
• Or using fulfillment partners who are… let’s say “flexible” with country of origin declarations,

You could be putting your business on a collision course with customs. Now’s the time to audit your logistics stack:

• Are you shipping multiple orders a day to the same customer to avoid duties?
• Are you relying too heavily on one country or one fulfillment model?
• Do you know exactly how your supplier is labeling packages?

If your answer to any of those is “ehh, not really”—you’ve got some homework. De minimis might not be gone completely, but it’s no longer a quiet little hack. Use it carefully, or risk drawing exactly the kind of attention you don’t want.

Strategy Tips: What to Do Next

Whether you’re dropshipping, importing, wholesaling, or managing your own brand—this is your signal to rethink your playbook. Tariffs and de minimis restrictions are tightening, but your margins don’t have to vanish with them. Here’s how to stay sharp:

Audit Your Suppliers

Find out where your products are really made—not just where they ship from. Country of origin determines tariff exposure, not shipping location. If your vendors can’t clearly tell you where each SKU is manufactured, it’s time to push for answers (or move on).

Diversify Your Sourcing

This one’s not easy—but it’s critical. If your pricing model hinges on sourcing from China and using de minimis to stay profitable, that model is now at risk. You don’t have to ditch everything overnight, but you do need to:

• Re-evaluate margin and markup to absorb duty costs if needed
• Explore alternate sources in countries not currently restricted
• Begin testing U.S. co-packing or finishing to change COO (country of origin), if viable.

Communicate With Your Customers

If prices are shifting or delivery times are changing, say so. Transparency builds trust—and gives you breathing room to explain why you’re adjusting strategy in a volatile trade environment.

Reassess Your Shipment Practices

Still counting on de minimis to cover multiple daily shipments to the same customer or address? That’s a red flag now, not a workaround. Customs is watching for repeat low-value shipments, especially when declared values look suspiciously rounded or low. There’s no safe loophole here. Instead:

• Avoid over-dependence on daily small-parcel fulfillment
• Flag risky patterns in your logistics partner’s methods
• Make sure customs declarations are accurate, consistent, and defensible.

Check Your HTS Codes (and Documentation)

Customs doesn’t just care what you’re shipping—they care what code you’re using. Wrong classification? You could be overpaying, underpaying, or unintentionally misrepresenting your goods. If you’re not sure, it’s worth getting a compliance review now—not when your shipments are held up at the port.

Final Word: The De Minimis Era Is Over—Now What?

For years, de minimis let businesses ship under the radar. No duties. No delays. No questions asked. But in 2025? That free pass is gone especially if you’re sourcing from China, relying on low-value parcels, or operating on thin margins.

This isn’t about fear. It’s about facts. The rules have changed. Enforcement is rising. And if you’re still using a playbook from 2022, you’re going to get left behind or audited.

But here’s the good news smart strategy still beats bad policy. You just need to act like a business that’s planning to survive—not scrambling to catch up.