De Minimis Rule Changes 2025: What E-commerce Sellers Need to Know

The de minimis rule—which allows low-value shipments to enter countries duty-free—is undergoing significant changes that will reshape cross-border e-commerce. Here's what sellers need to understand about these regulatory shifts and how to adapt.

What Is the De Minimis Rule?

The Basics

De minimis (Latin for "about minimal things") is a customs threshold below which imports enter a country without:

• Import duties
• Formal customs entry
• Extensive documentation

Current US Threshold

Section 321 provisions:

• $800 per person per day
• One of the highest in the world
• Originally designed for travelers and gifts
• Now widely used for e-commerce

Global Comparison

Why De Minimis Matters for E-commerce

The Cross-Border Advantage

For sellers using de minimis:

• Lower costs (no duties)
• Faster customs clearance
• Simpler documentation
• Competitive pricing possible

For consumers:

• No surprise duty charges
• Faster delivery
• Lower total costs
• Better shopping experience

The Volume Explosion

De minimis shipments have exploded:

• 1 billion+ Section 321 shipments annually to US
• 90%+ growth since 2018
• Major share from China-based sellers
• Platforms like Shein, Temu driving volume

The Regulatory Changes

What's Changing

Increased scrutiny:

• More enforcement of existing rules
• Tighter documentation requirements
• Data sharing mandates
• Origin verification

Proposed threshold changes:

• Reduction of $800 threshold discussed
• Product category exclusions
• Seller country restrictions
• Frequency limits

Why Changes Are Coming

Concerns driving reform:

• Lost tariff revenue
• Competitive disadvantage for US sellers
• Counterfeit goods entering
• Product safety bypasses
• Lack of transparency

Timeline of Changes

Recent and upcoming:

• 2024: Enhanced data requirements
• 2025: Stricter enforcement begins
• 2026: Potential threshold reductions
• Ongoing: Legislative proposals

Impact on Different Sellers

US-Based Sellers

Current situation:

• Compete with duty-free imports
• Same products, different cost structures
• Price pressure from overseas competitors

Potential benefits of reform:

• Level playing field
• Reduced unfair competition
• Focus on US manufacturing

International Sellers Shipping to US

What to expect:

• Higher compliance requirements
• Potential duty exposure
• Need for strategy adjustments
• Documentation burden

Dropshippers

Particularly affected:

• Many rely on de minimis heavily
• Business model may need revision
• Cost structure changes
• Supplier relationship impacts

Adapting Your Strategy

Option 1: US-Based Inventory

Shift to domestic fulfillment:

• Import in bulk (pay duties once)
• Store in US warehouses
• Ship domestically to customers
• Better delivery times

Considerations:

• Upfront inventory investment
• Warehousing costs
• Duty paid on import
• Customs broker needed

Option 2: Bonded Warehouses

How it works:

• Import goods to bonded facility
• Duties deferred until sale
• Re-export without duties if needed
• Flexibility on final destination

Benefits:

• Duty deferral
• Inventory flexibility
• Multi-market distribution
• Cash flow management

Option 3: Foreign Trade Zones (FTZs)

FTZ advantages:

• Duty deferral or elimination
• Inverted tariff benefits
• Zone-to-zone transfers
• Manufacturing flexibility

Option 4: Strategic Sourcing

Diversify supply chain:

• Source from lower-tariff countries
• Qualify for trade agreements
• Consider nearshoring
• Multiple supplier strategy

Compliance Requirements

Documentation Essentials

What you need:

• Accurate product descriptions
• Correct HS codes
• True transaction values
• Origin documentation
• Recipient information

Customs Data Filing

New requirements include:

• 10+2 data for ocean shipments
• Advance cargo information
• Seller identification
• Platform transaction data

Record Keeping

Maintain:

• Purchase orders
• Commercial invoices
• Shipping records
• Payment documentation
• Supplier information

Cost Analysis

Calculating Duty Impact

If de minimis doesn't apply:

Example: $500 product with 25% duty

• Duty cost: $125
• Customs processing: ~$25-50
• Total added cost: ~$150-175
• 30-35% cost increase

Break-Even Analysis

Consider:

• Product margins
• Duty rates by category
• Shipping cost changes
• Volume projections
• Customer price sensitivity

Pricing Strategy Options

Approaches:

• Absorb costs (reduce margin)
• Pass to customers
• Adjust product mix
• Find efficiencies elsewhere
• Negotiate with suppliers

Platform Implications

Major Marketplaces

Amazon:

• FBA simplifies compliance
• Import services available
• Global selling program options

eBay:

• Managed payments facilitates
• Global Shipping Program
• Seller responsibility varies

Direct Platforms (Shopify, etc.):

• Seller bears full responsibility
• Integration with customs brokers
• Duty calculation apps available

China-Based Platforms

Shein, Temu, AliExpress:

• Heavy de minimis users
• Business model impacts
• Adaptation strategies
• Platform responsibility increases

Future Outlook

What to Expect

Short-term (2025):

• Enhanced enforcement
• More documentation
• Possible category exclusions
• Platform requirements

Medium-term (2026-2027):

• Threshold changes possible
• International harmonization efforts
• Technology requirements
• Reporting mandates

How to Prepare

Action items:

Audit current de minimis usage

Model cost impacts of changes

Develop alternative strategies

Build compliance infrastructure

Monitor regulatory developments

Consider supply chain diversification

Best Practices

For Compliance

Accurate classification: Correct HS codes critical

True valuation: Don't undervalue shipments

Complete documentation: Missing info causes delays

Know your suppliers: Origin verification

Keep records: Audit trail essential

For Strategy

Diversify fulfillment: Don't rely solely on de minimis

Build US presence: Inventory positioning

Strengthen relationships: Customs brokers, carriers

Monitor changes: Stay informed on regulations

Plan for worst case: Model various scenarios

Key Takeaways

Change is coming: De minimis rules are tightening

Prepare now: Don't wait for enforcement

Consider alternatives: US inventory, FTZs, sourcing

Compliance matters: Documentation and accuracy

Stay flexible: Regulatory landscape evolving

Seek expertise: Customs brokers, trade consultants

The de minimis landscape is shifting. Sellers who adapt proactively will be better positioned than those who wait for changes to force their hand.