Overview
Effective May 2, 2025 at 12:01 a.m. EDT, the United States government will eliminate de minimis duty-free treatment for certain low-value shipments originating from the People’s Republic of China (PRC) and Hong Kong. This change is based on an Executive Order issued on April 17, 2025.
Sellers located outside of the PRC and Hong Kong are not directly subject to this policy change, but may still experience broader impacts due to adjustments in enforcement and customs procedures.
What Is Changing?
The de minimis exemption, previously available under Section 321, allowed goods valued at $800 USD or less to enter the United States without payment of duties or the need for formal customs entry.
Beginning May 2:
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Shipments from the PRC and Hong Kong will no longer qualify for this exemption.
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These goods will be subject to all applicable U.S. import duties, regardless of value or shipping method.
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Postal shipments from these regions will face a flat duty:
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30% of the item’s value or $25 per item, whichever is higher
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Increasing to $50 per item beginning June 1, 2025
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In addition:
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Carriers transporting affected items must report shipment details to U.S. Customs and Border Protection (CBP), maintain a bond, and remit duties on a set schedule.
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CBP retains discretion to require formal entry for postal shipments.
Scope of the Executive Order
The policy applies to:
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All non-postal imports valued at or under $800 from the PRC or Hong Kong.
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All postal items from these regions, regardless of value, that previously qualified for duty-free entry.
The U.S. Department of Commerce will assess the policy’s impact and may consider applying similar measures to shipments from Macau in the future.
What It Means for Brands Outside of China
For sellers located in regions other than the PRC and Hong Kong, de minimis duty-free treatment remains in place at this time. However, international sellers should be aware of potential implications:
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Increased customs enforcement may apply more broadly, especially for regulated product categories.
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Sellers may experience longer processing times, additional documentation requirements, or higher scrutiny of shipments—even if they qualify for de minimis entry.
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The policy landscape remains subject to change, and additional regions may be included in the future.
Recommendations for Sellers
If you sell to U.S. customers from outside China or Hong Kong, here are a few steps to consider:
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Verify Product Compliance
Review which U.S. agency regulates your product category and ensure documentation is complete and current. -
Stay Informed
Monitor updates from CBP and the U.S. Department of Commerce in case the policy is expanded to cover additional countries or regions. -
Work With Qualified Partners
Engage customs brokers or compliance professionals to confirm that shipping practices align with current U.S. requirements. -
Plan for Potential Delays
Allow for possible customs processing delays as inspection procedures may become more stringent across the board.
Summary
As of May 2, 2025, the U.S. de minimis exemption will no longer apply to low-value shipments from China and Hong Kong. Sellers located elsewhere are not currently affected by this specific policy change but should take note of its potential operational impacts, particularly with regard to documentation, inspection procedures, and customs compliance.
For sellers continuing to ship into the U.S. under de minimis, maintaining proper regulatory documentation and working with knowledgeable logistics partners will be key to minimizing disruption.