The United States is set to eliminate the long-standing de minimis duty exemption for low-value imports under a sweeping trade reform law passed as part of the newly enacted mega-bill.

The exemption, which currently allows commercial shipments valued at $800 or less to enter the United States duty-free, will officially end on 1 July 2027, in a move aimed at strengthening fair trade practices and protecting domestic industries.

The de minimis rule, has allowed e-commerce sellers and international shippers to bypass duties and taxes for low-cost shipments. Critics have argued that the provision has led to significant revenue losses and given foreign sellers an unfair advantage over U.S. businesses.

Policy Shift to Reshape E-Commerce and Global Trade

The elimination of the de minimis threshold marks a significant shift in U.S. trade policy, especially as cross-border e-commerce continues to expand rapidly. Businesses that have relied on the $800 exemption to reduce landed costs will now face new financial and operational pressures.

Industry experts say the reform will prompt widespread adjustments in logistics, customs compliance, and supply chain management—particularly for international sellers and e-commerce platforms shipping directly to U.S. consumers.

Implications for Importers

• Higher Import Costs: Companies will need to factor in duties and taxes for all commercial shipments, regardless of value, starting mid-2027.
• Compliance Risks: Importers must ensure accurate customs declarations and valuations to avoid costly penalties.

The policy change is part of a broader effort by lawmakers to close loopholes that have allowed for what some call “de minimis abuse”—the practice of undervaluing shipments or splitting orders to avoid tariffs.

As the 2027 implementation date approaches, businesses are being urged to assess their import practices and begin planning for a more tightly regulated trade environment.

Mandy Lockett International Business Director commented:

“Companies relying on courier and express delivery services will be among the most affected by these changes. These channels have historically benefited the most from de minimis exemptions, enabling fast, low-cost cross-border shipments without duties or customs formalities.

With the removal of those thresholds, businesses using couriers will face new compliance obligations, increased landed costs, and potential delays — making accurate customs declarations and origin documentation more critical than ever.

Training on commodity codes, rules of origin and compliance is no longer a ‘nice to have’ — it’s a business-critical investment. Companies that act now to upskill their teams will avoid penalties, protect margins, and ensure smoother import operations in a more tightly regulated trade environment.

And this isn’t stopping with the United States. Other countries and trading blocs are also reviewing their de minimis rules — including our close neighbours in the European Union. Expect this shift to become a global trend, not a one-off.”

Contact the International Trade team at international@chamberelancs.co.uk or 01254356448 today for more information.