Aug. 29: The End of the U.S. “De Minimis” Era – Cross-Border Sellers, Are You Ready?

I. The Big Shift: No More Free Pass for Sub-$800 Parcels

On August 29, 2025, a major change hits cross-border trade. The U.S. Customs and Border Protection (CBP) confirmed that Executive Order 14324 will take effect, officially shutting the door on the long-standing $800 de minimis exemption.

What does that mean in plain English?

If you’re shipping into the U.S., every package—no matter how small—will need a proper declaration and duties paid.

Here’s how the two main channels break down:

• Non-Postal (Express Couriers / Freight Forwarders)
  → Must be filed through the ACE system, with regular duties collected.

• Postal (International Mail)
  → There’s a six-month transition window (Aug. 29, 2025 – Feb. 28, 2026):

  • Option A: Taxed ad valorem (based on value).

  • Option B: Flat fee ($80–$200 per shipment, depending on origin).
    → After Feb. 28, 2026, only the ad valorem option survives.

II. No More “Split to Save” Tricks

Earlier this year, CBP upgraded its ACE system with a smart alert: it flags whenever the same recipient exceeds $800 in shipments per day.

Translation? Those old tricks of breaking one order into ten tiny parcels to dodge duties—done. Sellers will have to go fully compliant with logistics declarations.

Why Sellers Should Care

• Higher Costs 💸: Every package now comes with a tax bill.

• Slower Delivery ⏳: More shipments routed through “inspect–declare–pay” loops.

• Compliance Pressure 📑: The risk of fines or seizures for misdeclared goods just got real.

III.But Wait—Is There a Way Back?

Not all hope is gone. Remember how Trump’s reciprocal tariffs under the IEEPA (International Emergency Economic Powers Act) got tied up in court? Judges are already questioning whether the President really has “unlimited power” to impose duties this way.

So far, nobody’s sued directly over the small-package EO, but if similar litigation happens and the courts rule the White House overstepped, the de minimis perk could make a comeback.

That said, don’t forget the “Big Beautiful Act” (yes, that’s what it’s nicknamed in China). Unlike an executive order, it’s a Congressional statute. And under that law, the $800 loophole shuts permanently on July 1, 2027.

In other words: even if this EO is overturned in court, the clock is still ticking. The de minimis era was always on borrowed time.

So… Are You Ready?

For cross-border e-commerce, this is a turning point. Costs will rise. Compliance will get tougher. Shipping times may stretch.

The winners? Sellers who adapt early—those who lock in U.S. warehousing, optimize their duty strategy, and build compliance into their operations.

The losers? Those who cling to the old ways and hope nobody notices.

The question isn’t if the de minimis era ends. That’s already written in law.
The only question left is: how fast will you adapt?