Breaking news! The highly anticipated "One Big Beautiful Bill Act" (OBBB) has officially passed and is expected to be signed into law by the President on July 4, 2025!

While this act covers a wide range of areas, one key provision is a thunderbolt for many cross-border e-commerce sellers, especially those who rely on the US "Section 321 De Minimis Exemption" for duty-free small packages.

Goodbye, $800 Duty-Free Threshold!

Previously, goods valued under $800 could enter the US duty-free through the "global small package" channel, largely exempt from customs duties and most clearance procedures. This was seen as a "golden channel" for US cross-border e-commerce, and a crucial tool for many sellers looking to tap into the American market.

However, according to the latest provisions of the "Big Beautiful Act," this highly favored $800 duty-free threshold will be officially eliminated!

What does this mean for you?

• Soaring Costs: Regardless of value, almost all cross-border small packages entering the US will now face the risk of import duties. This will directly increase your product costs.

• Slower Logistics: Customs clearance processes will become more complex and time-consuming. The likelihood of packages being detained or inspected will significantly increase, impacting delivery times and customer experience.

• More Complex Operations: Sellers will need to accurately calculate potential duty costs and may face more intricate customs declaration requirements.

Why the Change?

For a long time, US domestic manufacturers and retailers have complained that the "global small package" policy created unfair competition. They argued that foreign e-commerce sellers exploited this loophole to bypass the production and import costs faced by US businesses, giving their goods a price advantage. The passing of the "Big Beautiful Act" is a direct response to these calls, aiming to protect American industries and jobs and combat "grey areas" in cross-border trade.

How Should Sellers Respond?

Facing this major change, cross-border e-commerce sellers must act immediately and adjust their strategies:

1. Re-evaluate Pricing Strategy: Incorporate potential duty costs into your product pricing, or consider adjusting your product mix to focus on higher-value goods.

2. Optimize Supply Chain and Logistics: Explore more efficient and compliant logistics solutions, such as overseas warehousing or consolidated customs clearance models, to reduce per-package costs and risks.

3. Focus on Compliance: Deeply understand the new US trade regulations and customs requirements. Ensure all your operations are legally compliant to avoid unnecessary complications.

4. Diversify Sales Channels: Don't put all your eggs in one basket. Consider expanding into other international markets or adjusting your product lines.

The passing of the "Big Beautiful Act" signals a significant shift in the US cross-border e-commerce landscape. For sellers who have grown accustomed to the "global small package" advantage, this will undoubtedly be a challenge. But at the same time, crises often come with opportunities. Only by actively adapting to the new regulations and planning ahead can you remain competitive in the future market!