Policy change and timeline

On August 29 the White House officially ended the de minimis exemption that had allowed shipments under $800 to bypass duties and certain customs requirements. The move followed an executive order issued in late July that directed the change and set the new framework for how low-value imports are treated.

Federal data on shipment growth and revenue concerns

The executive order cited dramatic growth in low-value shipments to the United States. Between 2015 and 2024 the number of de minimis shipments rose from 134 million to more than 1.36 billion, the administration said. U.S. Customs and Border Protection (CBP) was processing in excess of 4 million such shipments per day.

The White House also highlighted a sharp increase in de minimis volume from countries that historically did not exploit the exemption, reporting 309 million shipments in fiscal year 2025 through June 30 compared with 115 million in fiscal year 2024. The executive order said this surge contributed to significant lost revenue for the U.S. government.

New requirements for commercial low-value shipments

The executive order makes clear that commercial low-value parcels, irrespective of origin, value, or entry method, are now subject to applicable duties and must undergo formal customs entry.

How those requirements are implemented differs by mode and carrier:

• Non-postal parcels carried by integrators such as UPS, FedEx, or DHL will enter Customs via the Automated Commercial Environment (ACE) and may require formal entry filings and bonds.
• Shipments moving through international postal services will incur duties based on the tariff rate assigned to the package’s country of origin, plus a flat handling fee of $80, $160, or $200 per package depending on the country’s IEEPA tariff rate.

Reader survey and overall response mix

Logistics Management conducted a reader survey of 100 freight transportation, logistics, and supply chain professionals to gauge operational effects since the exemption was removed. Responses painted a mixed picture: 32% of participants said the change has impacted their operations, 46% said it has not, and 22% reported they were unsure.

Operational impacts described by respondents

Those who reported disruption pointed to several concrete effects, including higher costs, slower deliveries, reduced availability of some products, and pressure to raise prices.

One respondent said they are seeing longer customs processing and added duties on low-value engineering samples that had previously been exempt, which introduced new costs and slowed prototype turnaround times, particularly for international R&D shipments.

Another survey participant described steps their company has taken in response: adjusting product prices to cover duties, consolidating shipments where feasible, and rethinking carrier strategies to remain compliant and control costs.

Survey breakdown of shipment share and delivery effects

Respondents were also asked about what share of inbound shipments had previously fallen under the de minimis threshold. Answers varied:

• 39% estimated that 0%–10% of their inbound shipments qualified
• 14% estimated 11%–20%
• 10% collectively estimated 21%–40%

The survey also asked about delivery-time impacts from the policy change. Results were:

• 7% said the removal has had a large impact on delivery times
• 24% said it has had some impact
• 47% said it has had little to no impact
• 22% said they were unsure

Effects on pricing and shipping policy decisions

On questions of pricing and shipping rules, responses were consistent across categories. Regarding product pricing, 36% of respondents said the change has affected prices while 64% said it has not. For shipping policies, 38% reported an impact and 62% reported no change.

Industry reaction and strategic advice from freight experts

Vincent Iacopella, President of Trade and Government Relations at Alba Wheels Up International, described the removal of the exemption as a major transformation for the trade ecosystem that shifts many operators from a simpler model to one that requires more data and compliance.

Iacopella noted that previously items under $800 were effectively duty-free and transactions required less data, enabling faster market access. Moving to a duty-paid environment will demand greater resources, more detailed data management, and partnerships with brokers experienced in trade compliance. He said the market is already adjusting, with some players migrating to the duty-paid model and larger firms better positioned to absorb the change.

Iacopella advised importers and logistics providers to seek brokers familiar with duty-paid workflows, and he predicted the shift will advantage larger marketplaces and companies with the capital and systems needed to collect data, manage compliance, and pay duties.