Major Changes to US De Minimis Treatment Effective on August 29, 2025
7/31/20253 min read
According to a new Executive Order issued on July 30, 2025, the United States will implement significant adjustments to the de minimis (duty-free) treatment for imported goods. This new regulation will take effect for goods entering consumption or withdrawn from a warehouse for consumption at or after 12:01 AM Eastern Daylight Time on August 29, 2025.
Overview of Core Changes:
Non-USPS Channels: Duty-Free Treatment Fully Eliminated
Effective from the implementation date, all goods entering the US via non-USPS channels (e.g., international express couriers, freight forwarders) will no longer enjoy duty-free treatment.
This means that regardless of their value, these goods must undergo standard customs declaration procedures to enter the US, submit complete import documentation, and pay all applicable duties and taxes, including any additional levied tariffs.
Background: The Presidential Executive Order states that the Secretary of Commerce has informed that appropriate systems have been established to fully and promptly process and collect duties on low-value goods globally. Therefore, suspending the de minimis exemption worldwide is deemed necessary and appropriate.
International Postal (USPS) Channels: Special Duty Mechanism Applies
Goods sent via the US Postal Service (USPS) that would originally be eligible for de minimis exemption (under 19 U.S.C. 1321(a)(2)(C)) will be exempt from any duties, except for those specified in Section 3 of this order. They will also be exempt from US Customs and Border Protection (CBP) declaration preparation until CBP establishes and publishes new declaration procedures in the Federal Register.
However, for products shipped via USPS, specific fixed duties will be imposed based on the "effective IEEPA tariff rate" of the product's country of origin:
Countries with an effective IEEPA tariff rate below 16%: $80 per package.
Countries with an effective IEEPA tariff rate between 16% and 25% (inclusive): $160 per package.
Countries with an effective IEEPA tariff rate exceeding 25%: $200 per package.
Regarding IEEPA Effective Tariffs:
These tariffs are initiated by President Donald Trump citing the International Emergency Economic Powers Act (IEEPA), and include both "reciprocal tariffs" and "fentanyl tariffs."
Except for China, Canada, and Mexico, other countries currently generally only have reciprocal tariffs.
Examples of IEEPA Effective Tariffs for various countries:
Vietnam 20%, EU 15%, Canada 30%, Mexico 30%, Japan 15%, India 25%, South Korea 15%, Thailand 36%, Indonesia 19%, Malaysia 25%, Cambodia 36%, UK 10%, South Africa 30%, Brazil 50%, Philippines 19%, Sri Lanka 30%, Myanmar 40%, Tunisia 25%, Kazakhstan 25%, Serbia 35%, Laos 40%, Algeria 30%, Bosnia and Herzegovina 30%, Brunei 25%, Moldova 25%, Iraq 30%, Libya 30%.
Other remaining countries are temporarily at 10% (it is understood that Trump will announce new rates for these remaining countries after August 1st).
China's Situation: China's effective IEEPA tariff rate is 10% reciprocal tariff + 20% fentanyl tariff.
Key Questions and Future Outlook:
The applicable tariff rate for Chinese postal packages (USPS) remains unclear. Previous reports indicated that after the US-China agreement on tariff reductions on May 14, 2025, Trump modified the Executive Order, lowering the ad valorem tariff from 120% to 54%, or imposing a fixed specific charge of $100 per postal package.
This leads to an unresolved question: For goods from China shipped via USPS, will the $100 per package fixed charge (based on the US-China agreement) apply, or the $200 per package fixed charge (due to China's IEEPA effective tariff rate exceeding 25%)?
The document explicitly states that further clarification from US Customs and Border Protection (CBP) is needed to determine which rate will apply.
Important Notes:
This policy will become effective on August 29, 2025.
CBP is authorized to require a bond for informal entry declarations (valued at $2,500 or less) to ensure duty payment and compliance with other legal requirements.
On July 31, 2025, a US appeals court will hear the validity of the Trump administration's Executive Order issued under the IEEPA, which could also affect the effectiveness of this administrative order.