Last updated: May 2026
The last several months have reshaped US import rules from the ground up. De minimis is gone. Tariff rates are shifting quarterly. Postal channels that used to move low-value goods duty-free are closed. Whether you're an Ecommerce operator, a supply chain manager, or a finance lead trying to model the new landed cost reality, this is your guide to what actually changed and what it costs.
Let's break it down step by step, so you can stay compliant, protect margin, and adapt before competitors do.
Section 321 de minimis is no longer active in the US. The exemption, which previously allowed shipments under $800 to enter duty-free with simplified clearance under Type 86, ended for Chinese and Hong Kong-origin goods on May 2, 2025, and was eliminated for all countries on August 29, 2025 (CBP guidance). For background on how this unfolded, see our breakdown of the closing of de minimis for China. The EU de minimis ending follows the same pattern.
Every commercial shipment entering the US now pays applicable duties, regardless of value. There is no $800 threshold anymore.
What this costs a typical DTC brand: a $50 unit shipped from China that previously entered duty-free now carries the Section 301 base tariff plus any reciprocal rate. Depending on the HTS classification, that can add $7 to $25 per unit in duty alone, before processing fees. On 10,000 monthly orders, that's $70,000 to $250,000 in new monthly duty exposure.
The brands absorbing this hit hardest are the ones still paying duties on full container loads weeks before the inventory sells. Brands shipping directly from manufacturers, and only paying duty on units that have already been ordered, defer that cost until revenue is in hand.
US tariff rates have shifted multiple times in 2025. As of the most recent updates, the following structure applies to commercial imports:
⚠️ Tariff rates are changing on a quarterly basis. Confirm current rates with your customs broker before filing. For a per-SKU landed cost calculation, use the landed cost calculator.
The pattern that matters: rates differ by country of origin, and country of origin is determined by where substantial transformation occurred, not where the package shipped from. For brands manufacturing across both China and Vietnam, this creates a real lever.
Reciprocal tariffs are now in force under the IEEPA framework. Country-specific rates vary and are subject to ongoing executive adjustment (Federal Register IEEPA actions).
If you rely on USPS for international inbound shipments, here's the current state of play:
The layered cost stack hitting brands shipping from China now includes duties on every parcel, port and harbor fees, and emerging Chinese-built ship shipping fees. Postal is no longer a workaround.
These changes do not impact Portless's shipping model.
If you're new to the world of imports, here are a few terms to bookmark:
Two structural costs hit your business at the same time when de minimis ended.
First, the duty cost itself. Every unit now pays. For a brand doing $5M in revenue at a $50 AOV with 15% blended duty exposure, that's roughly $750K in new annual duty cost. If you're absorbing it, margins compress. If you're passing it to customers, conversion drops. The levers that matter now are country-of-origin sourcing and tariff engineering, structuring product classification and substantial transformation to legally reduce the applicable rate.
Second, the cash flow timing. Under the legacy 3PL model, you pay duties on the entire container the moment it lands — often 60 to 90 days before the inventory actually sells. That cash sits locked in unsold stock. Layer in rising ocean freight, Chinese-built ship shipping fees, and warehouse storage, and the working capital drag compounds.
Direct fulfillment from the point of manufacture inverts this. Inventory stays in bonded facilities in China or Vietnam. You pay duties per order, after the customer has paid you. The result: only paying tariffs on units you've already sold, no working capital trapped in containers, and no duty paid on inventory that never moves. For a deeper breakdown of the financial mechanics, see our analysis of tax deferment strategies.
This is the same playbook Shein and Temu have used to compound growth through every tariff change since 2018. The mechanism is available to any US DTC brand willing to move off the legacy hub-and-spoke model.
And this isn't a US-only shift. The EU de minimis ending is on the same trajectory, which means brands selling cross-border need a fulfillment model that works under duty-on-every-parcel rules in multiple jurisdictions.
To model the impact on your own P&L, use the direct fulfillment ROI calculator.
De minimis is gone, postal workarounds are closed, and every parcel now pays duty. The brands protecting margin are the ones that stopped paying tariffs on inventory months before it sells and started paying only on units that have already been ordered. If duty exposure, locked working capital, or container-scale cash flow timing is squeezing your P&L, it's worth talking to our team about what direct fulfillment would change for your specific cost structure.
No. The US ended Section 321 de minimis and Type 86 clearance for all Chinese and Hong Kong-origin goods on May 2, 2025. The full de minimis exemption was eliminated for all countries on August 29, 2025. All shipments now require formal (Type 01) or informal (Type 11) entry and pay applicable duties.
Non-postal shipments from China now file under Type 11 (informal entry, up to $2,500) or Type 01 (formal entry, no value cap). Postal shipments fall under IEEPA tariff rules, assessed either ad valorem or via a flat per-item duty set by CBP.
Yes, but at lower rates. Vietnam-origin goods face country-specific reciprocal tariffs separate from the Section 301 China rates. Country of origin is determined by where the product was substantially transformed, not where it ships from.
Brands reduce exposure through three levers: tariff deferment (pay only on units sold via direct fulfillment), tariff engineering (legally reclassify products under lower-duty HTS codes), and country-of-origin diversification through manufacturing in Vietnam or other lower-tariff jurisdictions.
Every shipment needs a commercial invoice, accurate HTS code, declared value, country of origin, and importer of record details. Filings go through ACE under Type 01 or Type 11. Postal shipments require additional manifest data under IEEPA.
