U.S. De Minimis Repeal: End of $800 Duty-Free Imports
Reference for the suspension and repeal of the U.S. de minimis exemption under Section 321. The $800 duty-free threshold is being phased out, with full repeal effective August 2025 for all countries.
This is a regulated fee — required or governed by law in the jurisdictions below.
Overview
Under 19 U.S.C. § 1321, imports valued at $800 or below (de minimis) were eligible for duty-free entry with simplified customs procedures. This exemption has been heavily used by e-commerce and dropshippers, with China accounting for roughly 60% of de minimis shipments. The exemption is being phased out: suspension for China and Hong Kong air parcels and non-postal shipments began in May 2025; nationwide repeal for all non-postal imports from all countries takes effect August 29, 2025. After repeal, all imports must be filed through CBP's ACE system and are subject to applicable duties, taxes, and fees. Postal shipments (USPS) retain simplified paperwork but are subject to IEEPA tariffs. Merchants importing low-value goods must now account for duties at checkout or absorb them.
Fee schedule by jurisdiction
2 jurisdictions with active fee requirements.
| Jurisdiction | Fee |
|---|---|
| United States (China and Hong Kong) | Suspension began May 2025; duties apply per normal rates |
| United States (all countries) | Nationwide repeal effective August 29, 2025 |
United States (China and Hong Kong)
Suspension began May 2025; duties apply per normal rates
Air parcels and non-postal shipments from China and Hong Kong
Previously exempt under $800. Now subject to Section 301 and other applicable tariffs.
United States (all countries)
Nationwide repeal effective August 29, 2025
All non-postal imports from all countries
No duty-free treatment for packages under $800. Must file ACE entry and pay applicable duties.
Enforcement
Importers must file proper customs entries and pay duties. Non-compliance can result in CBP enforcement, seizure, and penalties.
What merchants get wrong
The de minimis repeal is one of the most significant changes for e-commerce importers in 2025. Dropshippers and merchants sourcing from China will need to either absorb duties, pass them through as surcharges, or restructure their supply chain. The change affects an estimated 4.2+ billion packages annually.
Official sources
Related guides
Step-by-step guides for charging u.s. de minimis and section 321 exemption changes on Shopify.
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Shopify compliance
This is a mandatory fee — merchants selling in covered jurisdictions are legally required to collect it. Shopify requires that mandatory fees be clearly disclosed to customers before checkout. Use a Shopify app like Magical Fees to automate collection and ensure compliance.
This information is maintained by the Magical Apps team and reviewed quarterly. Always consult official government sources for the most current requirements.
Quick facts
- Regulation
- Section 321 De Minimis Exemption Repeal
- Country
- United States
- Jurisdictions
- 2
- Category
- Tariffs & Import Duties
Explore U.S. De Minimis and Section 321 Exemption Changes in practice
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Related use cases
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More tariffs & import duties
Other regulations in this category.
Canadian Customs Tariffs and Import Duties
Reference for Canadian customs duties applied to goods imported into Canada. Rates depend on product classification (HS/tariff item) and country of origin; USMCA and other FTAs provide preferential rates.
View fee schedule →European UnionEU Customs Tariffs and Import Duties
Reference for EU customs duties and tariff rates applied to goods imported into the European Union. Rates depend on origin, product classification (TARIC/CN), and trade agreements.
View fee schedule →United KingdomUK Global Tariff
Reference for the UK Global Tariff (UKGT) applied to goods imported into Great Britain from outside the UK. Rates depend on product classification and origin.
View fee schedule →United StatesU.S. Section 301 Tariffs on China
A reference for U.S. Section 301 tariff rates imposed on goods of Chinese origin. Rates vary by product and list (tranche); merchants often pass these costs through as surcharges at checkout.
View fee schedule →Can't find what you're looking for?
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