USA de minimis provisions no longer in effect

De minimis is a Latin term that literally translates to "of the smallest". In the context of international trade, it refers to a provision allowing shipments below a specified value to be imported duty-free and with minimal or no documentation. Many countries have this provision, although with differing amounts, as it helps to streamline the customs process and save the regulator costs. Yes, it is subject to abuse. That is not new, but the regulator has provisions in place to identify suspect shipments.

The implementation of President Trump's Executive Order, which removes the de minimis exemption for goods valued at $800 or less imported into USA, is effective from 12.01 am US Eastern Time on 29 August 2025. These goods will then incur a significantly increased duty rate, which, as I understand it, will either be the applicable ad valorem rate or a flat rate as follows for goods sent through the international postal network. This rate will apply for the first six months, after which the appropriate ad valorem rate for the country of origin of the goods (not the consignment) will apply. 

1. Countries with an effective IEEPA tariff rate of less than 16 percent: $80 per item; 
2. Countries with an effective IEEPA tariff rate between 16 and 25 percent (inclusive): $160 per item; and
3. Countries with an effective IEEPA rate above 25 percent: $200 per item. 
4. (d) For all international postal shipments subject to the methodologies described in subsections (b) and (c) of this section, the country of origin of the article must be declared to CBP.

(The term “effective IEEPA tariff rate” means the total duty rate applicable to those goods from that origin)

Other origins are subject to an ad valorem duty rate of either 30% of their value or $25 per item (increasing to $50 per item after June 1, 2025). This is in lieu of any other duties, including those imposed by prior Executive Orders.

Imports other than by post will be subject to standard duties, including those announced by President Trump under the International Emergency Economic Powers Act (IEEPA). Could this sometimes provide a potential cost advantage for some importers using postal services? (I didn’t tell you that)

Just to reiterate my past advice – sending foreign-origin goods from Australia to the US does not change their origin, no matter how long it’s been here or what your mate told you and no matter what you read where. (AU Post – please check your online advice. You are probably being misquoted at me) 

Also, this is not professional advice. It’s an opinion piece. Don’t sue me. Like everyone else I’m getting too much information from social media and other networks with too much of it inflammatory in tone.