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De minimis

The $800 de minimis exemption is gone. Every parcel needs a code now.

For years, US imports under $800 cleared duty-free under de minimis. That ended in 2025. Now every parcel, including drop-shipped orders and small replenishment lots, needs a declared HS code and owes duty. Here is what changed and what to do.

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What de minimis was

De minimis was a US customs rule, Section 321, that let shipments worth under $800 enter duty-free with minimal paperwork. The logic: it cost customs more to process a small parcel than the duty was worth. That threshold is what made cheap direct-to-consumer imports and dropshipping economical. A $30 order from an overseas supplier landed with no duty and no HS code on a formal entry.

What changed

The $800 de minimis exemption ended in 2025, on August 29. Parcels that used to clear duty-free now need a declared HS code and owe duty like any other import.

The change is not a small tweak. It flips the default for an entire class of shipment. A parcel that needed nothing now needs a classification, a duty payment, and a customs declaration that holds up. Multiply that by every order a dropshipper ships, and the back-office work and the landed cost both jump.

Why it stings more in 2026

The timing made it worse. De minimis ended into a period of historically high tariffs: effective rates on common categories climbed from 31.5% in late 2023 to 176.5% by April 2025. So parcels did not just lose their exemption, they started owing duty at some of the steepest rates in decades. A wrong HS code on top of that is no longer a rounding error.

Who got hit

  • Shopify and DTC dropshippers. Every order is now a dutiable import. The business model that assumed duty-free parcels has to reprice. See our Shopify HS code guide.
  • Amazon FBA sellers. Small replenishment lots that slipped under $800 no longer do. See FBA HS codes.
  • Marketplace and direct-from-overseas sellers. The cheap-parcel pipeline from foreign warehouses now carries duty and paperwork.
  • Shoppers buying direct. The courier now collects duty at the door unless the seller paid it up front.

Three things to do now

  1. Put an accurate HS code on every parcel. The code sets the duty rate and has to be on the declaration. Guess and you overpay or get held. Look up a code or learn how to read one.
  2. Decide whether to ship DDP. If you sell direct to consumers, paying the duty up front (delivered duty paid) stops the courier from surprising your customer at the door. See DDP vs DAP.
  3. Check 2024-2025 duties for refunds. Recent court rulings voided certain Section 301 and IEEPA tariffs. If you paid them, some may be recoverable. See our Section 301 refund guide or start a free duty refund audit.

The one-line takeaway

The free pass on small parcels is over. The new baseline is: every shipment needs a correct HS code, and the cost of getting it wrong has never been higher. Classify your first product free →

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