If your business relies on direct imports from China, there’s good news - and some important changes - coming from U.S. Customs and Border Protection (CBP).
Here's how the current system works: Under Section 321 of the Tariff Act, most shipments valued at $800 or less qualify for duty-free "de minimis" status and faster customs processing. It's been a convenient option for many e-commerce and DTC brands.
But here's the change you need to know about: starting May 2, 2025, the de minimis exemption ($800 duty-free threshold) no longer applies to Chinese goods. Here’s what you need to know:
Please note that International Postal Shipments (i.e. China Post) are subject to different rules.
Previously, CBP announced that Chapter 99 goods (HTSUS Subchapters III & IV) valued over $250 would require formal entry (Type 01)—forcing importers to either:
Thankfully, CBP has suspended this rule and will continue allowing informal entries up to $2,500, avoiding a surge in small-value filings and keeping costs low for businesses.
Why it matters:
These changes took effect April 30.
Navigating these changes are tough - but you don’t have to do it alone.
We understand how scary the new tariff landscape is and how high the stakes are for your business. But with the right strategy, you can save money and scale faster. We help hundreds of ecommerce and DTC brands leverage tariff deferment and tariff engineering to reduce costs and grow with confidence.
Schedule a risk-free assessment today and start turning these new changes into an advantage.