TL;DR: The US ended its $800 de minimis exemption on August 29, 2025 --- every import now requires customs entry and duty payment regardless of value. The EU follows with a EUR 3 flat duty per item category from July 1, 2026, and the UK will remove its GBP 135 threshold by 2029.

De Minimis Is Dead: What the End of the $800 / EUR 150 / GBP 135 Exemption Means for E-Commerce

The de minimis exemption --- the rule that allowed low-value imports to enter a country duty-free --- is being dismantled across all three major Western trade blocs in rapid succession, affecting more than 5 billion cross-border parcels per year.

This guide breaks down exactly what changed, when, and what it costs for e-commerce sellers who ship across borders.

What Was the De Minimis Exemption, and Why Did It Exist?

The United States suspended its $800 threshold for all countries on August 29, 2025, after first targeting China in May. The European Union will impose a flat EUR 3 customs duty on all parcels under EUR 150 starting July 1, 2026. The United Kingdom has announced plans to remove its GBP 135 threshold by 2029. If you sell products across borders --- whether through Amazon FBA, Shopify, Temu, Shein, or your own storefront --- every shipment you send or receive now carries a customs duty obligation.

The de minimis exemption was a customs threshold below which imported goods entered a country without paying any customs duties. Each jurisdiction set its own threshold:

• United States: $800 per person per day, established under Section 321 of the Tariff Act of 1930
• European Union: EUR 150 for customs duties (though VAT still applied above EUR 22 until that lower threshold was removed in July 2021)
• United Kingdom: GBP 135, maintained after Brexit

The original rationale was administrative efficiency. Processing formal customs entries for a $15 phone case or a $30 pair of shoes cost more in government resources than the duty revenue collected.

When the US raised its threshold from $200 to $800 in 2016 under the Trade Facilitation and Trade Enforcement Act, cross-border e-commerce was still a fraction of its current size. That calculus changed dramatically.

How Large Did the De Minimis Problem Become?

According to data from CBP and the European Commission, the volume of de minimis parcels grew exponentially:

• United States: Approximately 4 million parcels per day by 2024, totaling roughly 1.36 billion packages annually
• European Union: An estimated 4.6 billion low-value shipments in 2024 alone, with around 91% originating from China

Key Takeaways: The US suspended its $800 de minimis exemption on August 29, 2025 -- every import now requires customs entry and duty payment regardless of value. The EU will impose a flat EUR 3 duty on all low-value parcels from July 1, 2026, moving to full tariff rates by 2028. The UK plans to remove its GBP 135 threshold by 2029. E-commerce sellers must now classify every product with an HS code, recalculate landed costs to include duties, and adapt supply chains for a permanent shift in cross-border cost structures.

How Did the US End De Minimis?

The United States eliminated its de minimis exemption in two phases, moving faster and more aggressively than either the EU or UK. On May 2, 2025, the administration permanently revoked de minimis treatment for all goods from China and Hong Kong. On July 30, 2025, President Trump signed an executive order suspending duty-free de minimis treatment for all countries, effective August 29, 2025.

What are the new US duty rules for low-value shipments?

Since August 29, 2025, every non-postal import into the United States, regardless of value, requires a formal or informal customs entry with full classification, valuation, and duty payment.

The practical impact depends on the shipment channel:

Non-postal shipments (express carriers, freight): Full customs duties apply immediately. Every parcel needs an HS code classification, a declared value, and country of origin. Duties are calculated at the applicable ad valorem rate for the product category.

Postal shipments (USPS --- United States Postal Service --- international mail): A transitional two-phase system applies:

• Phase 1 (August 29, 2025 -- February 28, 2026): Flat per-item duties based on the country of origin's tariff rate: $80 per item for countries with effective tariff rates below 16%, $160 per item for rates between 16% and 25%, and $200 per item for rates above 25%.
• Phase 2 (March 1, 2026 onward): Full ad valorem duties calculated on the product's value and tariff classification, identical to non-postal shipments.

For goods from China, the flat rate during Phase 1 was $200 per item --- often exceeding the value of the product itself. A $25 t-shirt classified under HS 6109.10 shipped from China via USPS would have incurred $200 in duty during Phase 1, an effective tariff rate of 800%.

What role did the Supreme Court IEEPA ruling play?

On February 20, 2026, the Supreme Court ruled 6--3 in a landmark decision that IEEPA (International Emergency Economic Powers Act) does not authorize the President to impose tariffs. Chief Justice Roberts wrote for the majority that IEEPA was never intended as a tariff instrument. This ruling struck down the broad IEEPA-based tariffs that had been layered on top of existing duties.

However, the de minimis suspension itself was enacted through a separate executive order mechanism, and the Section 301 tariffs on China (which predate IEEPA usage) remain in force.

The practical result: de minimis is still dead, but the total duty rates on many Chinese goods may decrease as IEEPA surcharges are unwound. Importers should monitor CBP guidance closely for updated rate schedules.

What Is the EU Doing About De Minimis?

The EU is taking a phased approach to eliminating its EUR 150 customs duty exemption, with implementation beginning July 1, 2026. The EU Council formally agreed on December 12, 2025 to levy customs duties on all small parcels entering the bloc, and the Council gave final approval on February 11, 2026.

How will the EU flat duty work in practice?

Starting July 1, 2026, every parcel entering the EU valued under EUR 150 will be subject to a flat EUR 3 customs duty per item category. The duty is applied per tariff sub-heading contained in a parcel, not per parcel. A single package containing a t-shirt (HS 6109.10) and a USB cable (HS 8544.42) would incur EUR 6 in duties --- EUR 3 for each product category.

This interim flat rate applies to goods where the non-EU seller is registered in the EU's Import One-Stop Shop (IOSS) for VAT purposes, covering approximately 93% of all e-commerce flows into the EU.

The flat rate remains in effect from July 1, 2026, to July 1, 2028, when the EU Customs Data Hub is expected to become operational and standard ad valorem tariff rates will apply to all low-value imports.

For sellers not registered in the IOSS, the full applicable customs duty rate will be charged from day one, based on the product's HS code classification and country of origin.

"The EUR 3 flat duty is deliberately simple --- it's a bridge mechanism, not the end state. Sellers who treat it as the new normal will be caught off guard in 2028 when full tariff rates apply and the duty on a EUR 30 garment jumps from EUR 3 to EUR 3.60 or more." --- Gerlinde Berger-Walliser, Professor of International Trade Law, University of Connecticut

What Is the UK's Timeline for Removing GBP 135 Relief?

The UK's timeline for removing its GBP 135 de minimis relief extends to March 2029, making it the slowest of the three jurisdictions to act. The United Kingdom announced in its Autumn Budget 2025 that it intends to remove the GBP 135 customs duty de minimis relief for low-value imports, with the threshold remaining in place through at least December 31, 2026.

HMRC has launched a public consultation on implementation details. The UK approach is notable for its longer runway --- giving businesses more time to adapt --- but the direction is unambiguous. Once removed, every shipment into the UK will require formal customs processing, accurate HS classification, and duty payment regardless of value.

For sellers shipping footwear (Chapter 64) or knitted apparel (Chapter 61) to UK customers, the current GBP 135 window remains the last operational de minimis exemption among the three major jurisdictions.

Three-Jurisdiction De Minimis Comparison

	United States	European Union	United Kingdom
Previous threshold	$800 per person/day	EUR 150 (customs duty)	GBP 135
New status	Suspended for all countries	EUR 3 flat duty per item category	Removal by 2029
Effective date	August 29, 2025 (global); May 2, 2025 (China)	July 1, 2026	TBD (by March 2029)
Interim mechanism	Flat $80--$200/item (postal, Phase 1); full ad valorem (Phase 2, from March 2026)	EUR 3 flat duty (July 2026 -- July 2028); full tariff rates (from 2028)	GBP 135 threshold still active
Permanent regime	Full ad valorem duties on all imports	Standard tariff rates via Customs Data Hub (2028)	Full customs processing (by 2029)
Annual parcels affected	~1.36 billion	~4.6 billion	Estimated 500+ million
Legal basis	Executive Order (July 30, 2025)	EU Council Regulation (Feb 11, 2026)	Autumn Budget 2025 announcement
China-specific action	De minimis revoked May 2, 2025	91% of affected parcels from China	No country-specific measures

How Much Will This Cost E-Commerce Sellers?

The financial impact varies significantly by product category, order value, and origin country. Below are representative calculations for common e-commerce products shipped from China to each jurisdiction, using standard MFN duty rates.

What duties apply to a $30 t-shirt from China?

Consider a basic cotton t-shirt (HS 6109.10) valued at $30, shipped from China:

United States (post-August 2025):

• Base MFN duty rate: 16.5% ad valorem
• Section 301 tariff on Chinese textiles: 7.5%
• Combined rate: 24% (subject to change post-IEEPA ruling)
• Duty on $30 t-shirt: approximately $7.20
• Previous duty under de minimis: $0

European Union (from July 2026):

• Interim flat duty: EUR 3 per item category
• VAT: already applied (no change)
• Duty on EUR 28 t-shirt: EUR 3
• Previous duty: EUR 0

United Kingdom (currently):

• Still exempt under GBP 135 threshold
• Once removed: standard 12% duty = approximately GBP 2.88 on a GBP 24 t-shirt

What about electronics and accessories?

A USB-C cable (HS 8544.42) valued at $8 shipped from China:

United States: Duty rate of approximately 3.9% plus Section 301 surcharges. Even at a combined 25% rate, the duty is $2.00 --- but the formal entry processing fee (minimum $2 for informal entries, $27.75 for formal entries above $2,500) can exceed the duty itself for individual low-value items.

European Union: EUR 3 flat duty on a product worth EUR 7.40. The duty now exceeds 40% of the product value.

For higher-value electronics like a laptop (HS 8471.30) at $450, the product was already above all three de minimis thresholds and is unaffected by these changes. The de minimis removal disproportionately impacts low-value consumer goods --- precisely the products that drove the growth of platforms like Temu and Shein.

What Happened to Temu and Shein After De Minimis Ended?

The platforms most dependent on de minimis were Temu and Shein, which together accounted for an estimated 600,000 daily shipments to the United States --- roughly 30% of all daily de minimis parcels and nearly half of all de minimis shipments from China.

Their business model relied on shipping individual orders directly from Chinese factories to US consumers, bypassing warehousing costs and, critically, customs duties.

After the China-specific de minimis revocation took effect on May 2, 2025, the impact was immediate:

• Temu's US daily active users dropped 52% in May compared to March
• Shein's daily active users declined 25% over the same period
• Temu was forced to restructure its US operations, shifting from direct-from-China shipping to a marketplace model using US-based warehouses

For independent sellers who competed against these platforms, the playing field has partially leveled. A small business importing toys (HS 9503.00) from China and paying full duties on bulk shipments was at a 15--25% cost disadvantage compared to Temu sellers shipping the same products duty-free under de minimis. That artificial price gap has closed.

What Should E-Commerce Sellers Do Now?

The end of de minimis is not a temporary disruption --- it is a permanent structural change to international e-commerce. Sellers who adapt their operations will survive; those who ignore it will see their margins evaporate.

"De minimis was never a business strategy -- it was a regulatory blind spot. The sellers who built their entire cost model around avoiding customs duties are now scrambling, while the ones who always priced in compliance costs are barely affected." -- Richard Ault, Former Section Chief, U.S. Customs and Border Protection

Step 1: Classify every product with an HS code

Every item you import now requires a valid HS code. This six-digit international classification determines the duty rate applied to your goods. Misclassification can result in overpayment, underpayment penalties, or seizure. Use the HSRates duty calculator to look up rates across US, EU, and UK jurisdictions.

Common classifications for e-commerce goods:

• T-shirts and knitted tops: HS 6109.10
• Footwear with outer soles of rubber or plastics: HS 6402.99
• Toys, scale models, puzzles: HS 9503.00
• Insulated cables and connectors: HS 8544.42
• Portable computing devices: HS 8471.30

Step 2: Register with customs authorities

In the EU, sellers or their intermediaries should register with the Import One-Stop Shop (IOSS) to benefit from the simplified EUR 3 flat duty rate. Non-IOSS shipments face full tariff classification and ad valorem rates from July 2026.

In the US, importers need either a customs broker or an Automated Commercial Environment (ACE) account. Every shipment requires an entry filing --- a process that was unnecessary for packages under $800 before August 2025.

Step 3: Recalculate your landed cost

Your product cost is no longer just supplier price plus shipping. The new formula:

Landed cost = Product cost + Shipping + Customs duty + Broker/entry fees + VAT/GST

For a $30 item from China entering the US, the new cost structure might look like: $30 (product) + $5 (shipping) + $7.20 (duty at 24%) + $3 (broker fee per entry) = $45.20. Under de minimis, this was $35. That is a 29% increase in landed cost.

Step 4: Consider supply chain restructuring

Sellers with significant volume should evaluate whether consolidating shipments into bulk imports and using domestic fulfillment (Amazon FBA, 3PL warehouses) produces better unit economics than individual direct-to-consumer shipments.

Key takeaway: Bulk importation allows duty to be paid once on the full shipment, and fulfillment from domestic stock avoids per-parcel customs processing entirely. The supply chain options to evaluate include:

• Bulk ocean freight + domestic fulfillment: Lowest per-unit duty and shipping cost, best for established sellers
• Third-party logistics (3PL) warehousing: Flexible alternative to FBA, allows multi-channel fulfillment
• Near-shoring to Mexico or Canada: Reduces transit time and may qualify for USMCA preferential rates
• Domestic sourcing: Eliminates customs duties entirely, but typically at higher unit cost

For woven apparel (Chapter 62) and electrical machinery (Chapter 85), the duty rates can vary substantially within a chapter. Accurate classification at the HS6 level is essential --- the difference between two adjacent codes can mean a 10-percentage-point swing in duty rate.

Step 5: Explore FTA and trade preference programs

Not all imports face the same duty burden. The following trade preference programs can reduce or eliminate duties on qualifying goods:

• Free Trade Agreements (FTAs): USMCA (US-Mexico-Canada), EU-Vietnam FTA, UK-Japan CEPA, and others provide reduced or zero-duty access
• Generalized System of Preferences (GSP): Reduced duties on goods from eligible developing countries
• Preferential origin programs: Country-specific schemes that reward local manufacturing content

If your products are manufactured in --- or can be sourced from --- an FTA partner country, the duty savings may offset the cost of supply chain changes.

What Does This Mean for Consumers?

The end of de minimis is ultimately a consumer cost event. According to the Tax Foundation, the average effective tariff rate rose from 2.4% in 2024 to 7.7% in 2025, the highest level since 1947. For low-value e-commerce purchases --- the $10--$50 range that defined the Temu and Shein experience --- prices will rise or selections will shrink.

Brookings Institution analysis describes the situation as "small parcels, big problems", noting that modernizing de minimis enforcement is necessary but imposes real costs on consumers and small businesses who relied on the exemption for affordable cross-border purchases.

Summary and Next Steps

The bottom line: The de minimis era is over across all three major Western trade blocs, and every cross-border e-commerce shipment now carries a customs duty obligation regardless of value.

Sellers must act now: classify every product with an HS code, recalculate landed costs to include duties and entry fees, and evaluate whether bulk importation with domestic fulfillment offers better unit economics. Use the HSRates Duty Calculator to estimate your new per-item duty burden across US, EU, and UK markets before repricing.

Key Takeaways

• US de minimis is gone permanently: The $800 exemption was suspended on August 29, 2025, for all countries. Congress shows no interest in reinstating it, and the Supreme Court's IEEPA ruling did not reverse the suspension.
• EU follows on July 1, 2026: A flat EUR 3 duty per item category applies to all low-value parcels, transitioning to full ad valorem rates by 2028.
• UK is last but committed: The GBP 135 threshold remains active through at least 2026 but will be removed by March 2029.
• Every product needs an HS code now: Regardless of value, every cross-border shipment requires customs classification, a declared value, and duty payment.
• Landed cost must be recalculated: A $30 item from China that previously cost $35 landed now costs $45.20 or more after duties, customs fees, and broker charges --- a 29%+ increase.

FAQ

Is the US $800 de minimis exemption coming back?

No. The executive order suspending de minimis treatment for all countries took effect on August 29, 2025, and there is no pending legislation or executive action to restore it. While the Supreme Court's February 2026 IEEPA ruling invalidated some tariff authorities, the de minimis suspension was enacted under separate legal authority. Congress has shown bipartisan support for de minimis reform, making reinstatement unlikely.

Do I need a customs broker for every small shipment?

For US imports, every shipment now requires a customs entry filing, but you do not necessarily need a licensed broker for each one. Informal entries (goods valued under $2,500) have simplified requirements but still need an HS code, declared value, and country of origin. Most logistics providers (FedEx, UPS, DHL) handle customs brokerage as part of their shipping service. For EU imports, IOSS registration simplifies the process for the interim EUR 3 flat duty period.

How does the EUR 3 flat duty compare to actual EU tariff rates?

The EUR 3 flat duty is a temporary measure (July 2026 -- July 2028) designed for administrative simplicity. For very low-value items (under EUR 10), the effective rate can exceed 30%. For items near the EUR 150 ceiling, the effective rate drops below 2%. When full ad valorem rates apply in 2028, duties on clothing range from 8% to 12%, electronics from 0% to 4.7%, and footwear from 8% to 17%. For most categories, the flat EUR 3 is lower than the full tariff rate.

What penalties exist for misclassifying goods to avoid duties?

In the United States, CBP can impose civil fines of up to $5,000 for a first violation and $10,000 for repeat offenses related to de minimis abuse, including splitting orders into multiple sub-$800 parcels or misstating product value. Criminal penalties for customs fraud can include fines up to $250,000 and imprisonment. The EU is similarly strengthening enforcement with its new Customs Data Hub designed to detect systematic undervaluation.

Can I still use de minimis for shipments to the UK?

Yes, as of February 2026, the UK's GBP 135 de minimis threshold remains in effect. The UK government has committed to removing it by March 2029 but has not set a firm date. However, sellers should not build long-term strategies around this exemption --- the direction is clear across all three jurisdictions, and the UK will follow.

The Bottom Line

The de minimis exemption era is over. The United States moved first and hardest, eliminating duty-free treatment for 1.36 billion annual parcels in a matter of months.

The EU follows on July 1, 2026, with a pragmatic EUR 3 flat duty bridging the gap to full tariff enforcement in 2028. The UK will close the last remaining window by 2029.

For e-commerce sellers, the path forward requires three fundamentals: accurate HS code classification for every product, transparent landed-cost calculations using tools like the HSRates duty calculator, and supply chain strategies that account for customs duties as a permanent cost of doing business --- not an avoidable expense.

The businesses that treated de minimis as a competitive strategy have already felt the consequences. The businesses that treat customs compliance as infrastructure will be the ones still operating in 2027.

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Duty rates referenced in this article are based on published MFN tariff schedules as of February 2026. Rates are subject to change based on trade policy developments, including the ongoing implementation of the Supreme Court's IEEPA ruling. Always verify current rates using official government sources or the HSRates duty calculator.

Government and Industry Sources

• U.S. Executive Order: Suspending Duty-Free De Minimis Treatment for All Countries --- The White House
• CBP Trade Information Notice on De Minimis --- U.S. Customs and Border Protection
• EU Council: Customs Duty on Small Parcels as of 1 July 2026 --- Council of the European Union
• EU Council: Final Green Light for New Customs Duty Rules --- Council of the European Union
• E-Commerce: EUR 150 Customs Duty Exemption Threshold Removal --- European Commission
• UK 2029 Ending Customs-Free GBP 135 Threshold --- VATCalc
• Supreme Court Strikes Down Trump Tariffs --- CNBC
• End China's De Minimis Abuse Act (H.R. 805) --- Congress.gov
• How the End of the De Minimis Exemption Hit Businesses --- Marketplace
• De Minimis Package Volume Statistics --- Red Stag Fulfillment
• How to Handle US-China Tariffs and the End of De Minimis --- Avalara
• Small Parcels, Big Problems: Modernizing De Minimis --- Brookings Institution
• Trump Tariffs: Economic Impact --- Tax Foundation
• De Minimis Changes 2026: US, EU & UK --- iCustoms