Shopping on Temu, Shein or AliExpress may soon become (a lot) more expensive.
The once-little-known “de minimis” regime which allowed certain low-value imports to enter the US without customs duties is undergoing major reform, particularly for goods from China. MyDutyCollect breaks down what this means for consumers, e-commerce sellers… and your shipping costs.
What is the De Minimis Threshold?
The de minimis threshold in the United States allows shipments valued under $800 USD to enter duty-free, with minimal customs processing.
This rule, under Section 321 of the US Tariff Act, dramatically accelerated the growth of low-cost cross-border e-commerce especially from China.
In 2023 alone, over 1 billion packages entered the US under this regime. China was by far the leading source of those shipments.
What’s Changed: De Minimis Ended for China
In 2023 and 2024, the Trump administration issued a series of executive orders ending de minimis benefits for packages from China and Hong Kong, citing national security threats under the International Emergency Economic Powers Act (IEEPA).
But on 2 June 2025, the US Court of International Trade ruled that using IEEPA to impose those restrictions was unlawful.
If the ruling stands, it would restore de minimis eligibility for Chinese and Hong Kong shipments.
However, the Biden administration immediately filed an appeal and obtained a temporary stay, meaning tariffs and restrictions remain in place for now while the legal process continues.
Congress Steps In: Proposing to Scrap De Minimis Altogether
Even if the courts overturn the executive orders, Congress is preparing more permanent action. A bipartisan bill, the “Closing the De Minimis Loophole Act”, has been introduced by Senators Sheldon Whitehouse (D-RI) and Lindsey Graham (R-SC).
It would:
- Immediately end de minimis for China
- Phase it out for all countries after a four-month transition period
- Direct the Treasury Secretary to establish new import processing rules
- Align postal and express courier procedures
What It Means for Consumers
Ending de minimis for Chinese imports means:
- You’ll pay import duties and possibly VAT on even small items
- Longer delivery times due to full customs processing
- Hidden fees at delivery that weren’t shown at checkout
What It Means for E-Commerce Businesses
- Increased costs for customs declarations and duty payments
- Reduced sales from price-sensitive customers
- Urgent need for duty calculation and tax transparency tools
How to Adapt, and How MyDutyCollect Can Help
At MyDutyCollect, we support e-commerce businesses and marketplaces by:
- Automatically calculating duties and taxes on each shipment
- Helping ensure customs compliance
- Showing customers total landed costs upfront
In a world where de minimis is no longer guaranteed, our tools help you build trust – and stay profitable.
What Happens Next?
- For now, tariffs and customs declarations remain required on parcels from China.
- An appeal is under way, with further rulings expected in late 2025.
- The Congressional bill could become law, ending de minimis by early 2026.
At MyDutyCollect, we support businesses in navigating these complex regulations by offering automated customs clearance, precise duty and tax calculation, and compliance solutions. As trade regulations evolve, having the right tools in place can make all the difference.
Get in touch with us to find out how we can assist your cross-border operations. Subscribe to our blog and visit our website and LinkedIn page for more updates. You can also contact us by sending a message to info@mydutycollect.com. We’d be delighted to hear from you.
Sources :
–Article du Council on Foreign Relations : “The Price of What You Buy Online Is About to Go Up”
–Press release from Senator Sheldon Whitehouse on the ‘Closing the De Minimis Loophole Act’ bill
–Rapport de l’American Action Forum : « Destroying De Minimis »
