U.S. Ends De Minimis Tariff Exemptions for Imports from China and Hong Kong
This move aims to stop the entry of small parcel shipments into the country under relaxed enforcement thresholds, in an effort to combat the American synthetic opioid crisis.
The United States has officially terminated de minimis tariff exemptions for low-value imports from China and Hong Kong.
This policy change, announced through an executive order on April 2, 2025, aims to address concerns related to the illicit flow of synthetic opioids into the United States.
The de minimis provision, under Section 321(a)(2)(C) of the Tariff Act of 1930, previously allowed goods valued at or under $800 to enter the U.S. duty-free and with minimal customs procedures.
However, the recent executive order subjects these goods to full duties and standard customs procedures.
The decision to eliminate de minimis tariff exemptions reflects a broader effort to enhance customs enforcement and address regulatory gaps that are exploited by high-volume, low-value shipments.
The termination of the de minimis tariff exemptions for China and Hong Kong took effect at 12:01 a.m. Eastern Daylight Time on May 2, 2025.
From that moment, all previously qualifying low-value shipments from these locations became subject to regular duties and import procedures.
This applies to all shipments—regardless of whether they are sent through the international postal network or not.
Goods sent through the international postal network are now subject to a duty equal to 30% of their value, or a flat fee of $25 per item, whichever is greater.
This amount will increase to $50 per item beginning June 1, 2025.
Goods sent through other means will be subject to all applicable duties, which shall be paid in accordance with applicable entry and payment procedures.
Carriers moving low-value shipments are now required to report shipment data to the U.S. Customs and Border Protection (CBP) in advance of arrival. They must also maintain an international carrier bond and remit duties collected on a scheduled basis.
Moreover, CBP retains full authority to require formal entry processing for any postal shipment, regardless of the value or duty charged.
The Secretary of Commerce has been directed to conduct a full assessment of the impact of these changes.
The secretary will submit a report within 90 days of the order’s effective date.
Besides the assessment, the report will evaluate whether similar restrictions should be extended to include shipments from Macau.
Importers who previously relied on de minimis tariff exemptions on goods from China or Hong Kong should act quickly to ensure compliance. We recommend:
At Cole International, we constantly monitor changing tariffs and regulations and offer customs and compliance consulting services to help businesses navigate these changes.
Additionally, we provide timely and efficient customs brokerage services to help U.S. importers streamline their customs clearance and other import processes.
Please reach out to one of our trade professionals to discuss how this de minimis rule change will impact your business and how we can help.