WHEN WILL THE SUSPENSION TAKE EFFECT AND WHAT GOODS ARE COVERED?
An executive order issued July 30, 2025, announces the effective date beginning at 12:01 a.m. Eastern Daylight Time on August 29, 2025, U.S. Customs and Border Protection (CBP) will suspend the de minimis exemption under 19 U.S.C. 1321(a)(2)(C). All non‑postal shipments regardless of value, origin, transport mode, or entry method will be subject to duties, taxes, fees and other charges.
This action applies independently to goods from Canada (Executive Order 14193), Mexico (Executive Order 14194), the People’s Republic of China and Hong Kong (Executive Order 14195), and globally under the trade‑deficit measures of Executive Order 14257.
HOW WILL THE END OF DE MINIMIS IMPACT U.S. IMPORTERS?
Importers must file formal entries in ACE using appropriate entry types for all shipments that previously qualified for de minimis treatment. Informal entries valued at or below $2,500 now require a basic importation and entry bond under 19 C F R 113.62. Carriers delivering international postal shipments must maintain an international carrier bond under 19 C F R 113.64 sufficient to cover assessed duties.
WHAT IMPACT WITH THE END OF DE MINIMIS HAVE ON POSTAL SHIPMENTS?
During the interim period before CBP publishes a new entry process in the Federal Register, postal carriers must collect and remit duties using one consistent methodology per calendar month: an ad valorem duty equal to the effective IEEPA tariff rate for the country of origin applied to declared package value or a specific‑duty option based on that rate.
Specific per‑item duty based on the effective IEEPA tariff rate:
- $80 per item for rates below 16 percent
- $160 per item for rates between 16 and 25 percent inclusive
- $200 per item for rates above 25 percent
- Each package must clearly declare its country of origin
The specific‑duty option may be elected for six months following August 29, 2025; thereafter only the ad valorem methodology applies.
WHAT NEXT STEPS ARE RECOMMENDED FOR LOW-VALUE PARCEL OPERATIONS AND COMPLIANCE?
To maintain seamless operations and regulatory compliance, importers should:
- Update landed‑cost models and budgeting to reflect duties on previously de minimis shipments
- Engage customs brokers and in‑house trade teams to verify ACE account settings and bond sufficiency
- Revise internal import compliance manuals to incorporate new entry procedures and duty‑collection methodologies
- Implement additional quality‑control checks to guard against evasion tactics such as false invoicing, mislabeling of origin, and use of re‑shippers
Importers should monitor CBP communications closely and implement updates ahead of the August 29 deadline to ensure uninterrupted supply‑chain operations.
WHAT REGULATORY UPDATES ARE COMING?
CBP in coordination with other federal agencies, will:
- Issue temporary regulatory amendments and Federal Register notices establishing new postal entry processes
- Modify the Harmonized Tariff Schedule of the United States to reflect IEEPA‑based tariff stacking rules
- Provide guidance and training resources for customs brokers and trade teams on revised filing requirements
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