U.S. De Minimis Removal 2025
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On 29 August 2025, the U.S. removed its $800 de minimis duty-free threshold, ending the era of duty-free low-value imports. From now on, every international shipment attracts duties and tariffs, no matter its value, with only very limited exceptions for specific commodities.
For eCommerce brands and 3PLs, this marks a fundamental change in how cross-border trade operates. In a recent session, Beth Chapman of Starlinks Global broke down what’s changed, why it matters, and how retailers can adapt.
What Has Changed?
The removal of de minimis came almost two years earlier than originally planned. From the deadline, every shipment must declare its country of origin and is now subject to applicable tariffs.
Beth explained that these tariffs can stack, creating much higher costs than many retailers anticipate. For example, a single shipment may face:
a standard duty rate,
IEEPA tariffs,
Section 301 tariffs targeting China,
and additional Section 232 tariffs linked to national security.
This layered structure means even low-value items can now carry significant extra costs.
Clearance Pathways After De Minimis
The changes also affect how shipments clear customs.
Type 86, previously the most common route for low-value goods, can no longer be used for shipments that incur tariffs.
Type 11 informal entry has become the main pathway for goods valued up to $2,500.
Type 01 formal entry remains in place for shipments over $2,500 or those requiring special handling.
Postal routes are being handled differently in the short term. For the first six months after de minimis removal, postal shipments are only being charged IEEPA tariffs, with no full customs entry required. Once CBP systems are ready, postal will align with commercial clearance.
Importantly, when a parcel contains items from different origins, each product is taxed at its own rate rather than just applying the highest tariff across the shipment.
Examples of Tariff Costs
Beth used a simple white cotton T-shirt with a $20 retail value to show how the changes work in practice:
Made in the UK
Commercial clearance: ~$5.30 in duties and tariffs.
Postal clearance (temporary): $2.00.
Made in China
Commercial clearance: $10.80 reflecting stacked tariffs.
Postal clearance (temporary): $6.00.
These examples highlight why some retailers are reconsidering postal in the short term. However, Beth stressed that this advantage will only last until full postal clearance processes are implemented.
Timing and Compliance Risks
A critical point Beth made is that liability is determined by arrival date, not order date. Goods had to land and clear U.S. customs before 29 August to qualify under the old rules. Orders placed beforehand but arriving afterwards are fully liable.
She also emphasised that tariffs must be declared on the true transaction value (what the customer actually paid) not the cost price. U.S. Customs and Border Protection (CBP) is closely monitoring for mis-declarations or schemes designed to reduce tariff values.
Retailers are now split on checkout strategy. Some are increasing product prices to cover duties, while others display them separately at checkout. Both approaches have risks: inflating the declared value in one case or increasing cart abandonment in the other.
Why Strong Systems Are Now Essential
Beth’s analysis makes one thing clear: compliance after the removal of de minimis depends on accurate data and reliable processes. Retailers must have HS codes, country of origin, and product descriptions flowing into every shipment, and they need systems capable of adapting as clearance rules evolve.
This is where Helm WMS, supported by Voila for carrier management, becomes critical. Helm holds product-level data at SKU level, ensuring shipments are customs-ready and avoiding the errors CBP is actively watching for. It also automates courier decisions, steering orders through commercial or postal clearance without manual checks.
Moving Forward
The U.S. de minimis removal is more than a policy change, it is a structural shift in cross-border ecommerce. Every shipment is now under scrutiny, and every dollar in declared value matters.
As Beth summed up: “The right strategy can mean the difference between happy customers and abandoned shopping carts.”
With Helm, retailers and 3PLs can put that strategy into action: keeping shipments compliant, protecting margins, and giving customers transparency at checkout in a post-de minimis world.