What is De Minimis? A Simple Guide for Businesses

Understanding the Meaning of De Minimis

De minimis is Latin for “about minimal things.” In business and trade, it refers to low-value thresholds under which regulations or taxes don’t apply because the value is considered too small. In business law, you'll also hear "de minimis fringe benefit" which are small perks to employees, like coffee or snacks, that aren't taxed because their value is negligible.

In international trade, the de minimis rule sets a value threshold, traditionally $800 in the U.S., below which imported goods could enter without duties. E-commerce businesses do experience the de minimis benefit from this, enabling faster and more cost-effective cross-border shipping.

Current U.S. De Minimis Thresholds, Including the New Suspension

Through August 28, 2025, the U.S. allowed low-value commercial shipments (under $800) duty-free entry, except for restricted goods. Effective August 29, 2025, at 12:01 a.m. ET, a new executive order suspends this exemption for most imports, regardless of shipment value or country of origin, except for those handled via the international postal network.

What’s different now:

• Non-postal shipments: All low-value commercial imports now require formal customs filings through the Automated Commercial Environment (ACE) and are subject to full duties, taxes, and fees.
• Postal shipments: Carriers must collect duties using one of two methods:
  
  • Ad valorem duty, based on the IEEPA tariff rate by country.
  • Specific duty, ranging from $80 to $200 per item, depending on the IEEPA rate. This option is temporary (six months), after which all shipments must use ad valorem calculation.

This sweeping change reflects concerns over evasion via de minimis shipments and has serious implications for cost, logistics, and compliance. As one logistics provider briefly noted, “Several European and Asia‑Pacific posts have temporarily restricted or paused certain U.S. parcel offerings while they adjust systems…”

Benefits of the De Minimis Rule for Businesses (Before the Suspension)

Even though the de minimis tax rule is ending, it’s worth understanding the advantages businesses used to enjoy:

• Faster customs clearance: Packages under $800 entered the U.S. without formal entry, speeding delivery.
• Reduced costs: No duties or brokerage fees for low-value imports.
• Supply chain efficiency: Simpler logistics and pricing, especially for high-volume, low-value e-commerce.

Challenges and Considerations After the Suspension

The suspension introduces new layers of complexity:

• All shipments now carry duties, even small ones—raising landed cost and reducing margin flexibility.
• Customs brokerage becomes mandatory, adding procedural and staffing requirements.
• Postal providers are adjusting service availability, creating shipment delays or alternate routing challenges.
• Carry-over from past reliance on the de minimis rule may result in unexpected backlogs or cost overruns.

How to Maximize De Minimis Advantage (and Adapt Strategically)

Businesses need proactive responses:

• Switch to express or bulk shipping: Express services may bypass some postal challenges; ocean bulk replenishment can skirt per-item duties.
• Engage qualified customs brokers: Accurate entries in ACE, duty assessment, and bonds will now be essential.
• Reevaluate logistics models: Consider consolidating goods, routing the de minimis shipment differently, or revising pricing.
• Stay informed: CBP is issuing FAQs and hosting webinars (e.g., September webinars on trade violations reporting) to guide businesses.

How Slotted Helps Businesses Navigate De Minimis Rules: Now and After

Slotted specializes in making logistics simpler, even when regulations shift. Here’s how we support you:

• We connect you with vetted 3PL partners experienced in duty calculations, ACE filings, and customs compliance.
• We assist in choosing optimal shipping methods, whether postal, express, or bulk, depending on your cost and timing needs.
• We monitor regulation changes and update you proactively, turning trade policy disruption into a strategic advantage.

Final Word

The U.S. de minimis exemption may now be ending, but understanding its role helps you plan smarter. Whether you’re managing international fulfillment or building omni-channel supply chains, navigating this change promptly will be key to maintaining speed, cost-efficiency, and customer trust.

Ready to simplify your global shipping and stay compliant? Learn more about how Slotted matches businesses with expert 3PL partners, optimized for fast, cost-effective clearance.

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