De Minimis Ending: What You Need to Know About New Customs Processing
Starting August 29, 2025, packages under $800 from most countries will require full customs processing. For China, the end date is now November 9, 2025 due to a recent 90-day extension. Processing times increase from hours to days, and costs increase by $80-250+ per shipment.
The US is ending the de minimis exemption for all countries on August 29, 2025. For China and Hong Kong, it already ended May 2, 2025. After these dates, every international package faces duties, taxes, and customs paperwork. Shipping costs are increasing significantly, and delivery times are extending by 3-5 days.
The streamlined process that let millions of packages clear customs in hours is ending. Everything now goes through standard customs processing.
Looking for strategic business impact analysis? Read our complete guide to how de minimis ending affects different ecommerce business models.
What just changed
Under U.S. de minimis trade policy, imported goods valued at $800 or less (per person, per day) have been duty-free since March 2016. The threshold was $200 before that.
Current status as of August 13, 2025:
China: Still has de minimis exemption until November 9, 2025 (90-day extension granted)
All other countries: De minimis ends August 29, 2025
Hong Kong: Status follows China timeline
Before the end dates:
Processing time: 2-6 hours
Paperwork: Almost none
Customs review: Automated scan
Extra costs: Zero
After the end dates:
Processing time: 2-5 business days minimum
Paperwork: Full formal entry with detailed product codes
Customs review: 5-15% get pulled for physical inspection
Extra costs: $80-250+ per package
According to CBP data cited in White House analysis, businesses need proper HTS codes and duty calculations. CBP processes over 4 million de minimis shipments daily. Processing times increase significantly, and costs increase substantially per package.
The money impact: new cost structure
Processing costs include multiple fees:
Duties: Based on country of origin and product type (typically 10-25% of product value)
Brokerage fees: $50-150 per shipment according to NCBFAA data
Government processing fees: $31.67 minimum per entry
Postal shipments: Flat fees of $80-200 per item depending on country
For a $200 shipment, new costs could add $75-150 in fees plus applicable duties, increasing total costs by 35-75% depending on origin country and processing method.
FlavorCloud's analysis on de minimis impact warns costs will keep rising as "brokers, compliance intermediaries, and platforms fill in the gaps."
What you need to do right now
Get your paperwork ready:
10-digit HTS codes: The generic 6-digit codes cause delays and extra fees
Detailed invoices: Vague product descriptions = customs holds
Customs broker: You can't handle this yourself - when customers change addresses or want different products, self-service editing prevents expensive documentation mistakes
Warn your customers:
Add 3-5 days to all shipping estimates in Shopify
Show the real costs upfront with shipping calculators
Update your policies - when customs adds days to everything, customers need to fix their own order problems
Shipping companies face capacity constraints
According to CBP monthly reports, CBP processes nearly 4 million de minimis packages daily and needs enhanced facilities and tools to examine them effectively. The agency completed 53 audits in August 2024 that identified $48.7 million in duties and fees owed from improperly declared goods.
Shipping companies face capacity constraints:
FedEx and UPS raised fees for China and Hong Kong packages and extended these changes globally.
DHL temporarily suspended B2C services in April due to processing capacity constraints.
USPS experiences longer delays - trade analysis indicates 5-10 day processing delays through postal facilities due to limited infrastructure for formal entries.
How businesses are adapting
Moving inventory to US warehouses
Congressional Research Service reports indicate that brands are moving products into US warehouses to avoid per-package duties. Instead of shipping direct from overseas, businesses are importing in bulk then shipping domestically.
Returns become much more expensive
Returns now require customs processing both ways.
Wrong size? Wrong address? Duties apply twice. A simple size exchange that was free before August 29th now includes:
Original shipment: $75+ brokerage fee
Return shipment: Another $75+ fee
Plus duties on both directions
Returns can eliminate profit margins. With duties at 15-25% plus processing fees each way, international returns can turn profitable orders into losses.
According to trade policy analysis, return processing costs average $150-400 per round trip. Return prevention becomes essential for profit protection.
Changing timelines and trade policies complicate planning
Dates keep shifting. Originally July 2027, then moved to August 2025, now China got a 90-day extension to November 2025. More changes could happen at any time.
Beyond de minimis, tariff rates continue evolving. Even after de minimis changes take effect, businesses face ongoing tariff adjustments on specific products and countries.
What's certain: Processing requirements and costs are increasing, on unpredictable timelines with additional policy changes. What businesses need: Strategies that work regardless of whether changes happen in August, November, or face further modifications.
Cleverific provides operational certainty amid constant policy changes. Whether your international shipments lose de minimis protection in August, November, or face additional tariff adjustments, preventing costly returns and streamlining order management protects your profits while building resilience for whatever policies emerge.
Who eats the extra costs?
You have two choices: absorb the costs or pass them to customers.
This decision determines your competitive position and whether customers hate the surprise fees.
Option 1: You pay everything (DDP - Delivered Duty Paid) Customers see the final price at checkout. No surprises at delivery.
Best for: Premium brands, orders over $200, when customer experience matters more than lowest price
Risk: You absorb unexpected duty spikes and examination fees
Upside: Clean customer experience, no delivery delays from unpaid fees
Option 2: Customer pays at delivery (DDU - Delivered Duty Unpaid)
Lower advertised prices, but customers get hit with surprise charges when the package arrives.
Best for: Price-sensitive customers, high-duty products, competitive markets
Risk: Customers refuse packages, complain about surprise fees, delivery delays
Upside: Your advertised prices stay competitive
Most brands are using mixed strategies - absorbing costs on high-margin items, passing through on commoditized products. Retailers are adapting pricing strategies based on product categories rather than across-the-board changes.
How Cleverific helps with customs processing changes
When order changes require customs re-filing, customer self-service prevents expensive errors.
Address corrections, size changes, and product modifications now require customs documentation updates. When staff handles these changes, processing delays and errors increase. Self-service prevents these issues:
Reduce $150-400 return costs: Customers correct sizing and address issues before shipping
Improve delivery success: Address corrections before customs processing prevent failed deliveries
Decrease support tickets by 90%: Customers manage their own changes during processing delays
Avoid re-filing fees: Self-service edits prevent costly customs documentation corrections
When customs processing adds 2-5 days to every international shipment, Cleverific's self-service order editing helps Shopify brands maintain operational efficiency.
FAQ
How long will customs processing take after August 29? 2-5 business days minimum for standard processing, 5-7 days if packages are selected for examination. Peak season adds 1-3 additional days.
What documents are required for packages under $800? Enhanced commercial invoices with detailed product descriptions, 10-digit HTS codes for every item, accurate country of origin, and complete buyer/seller information.
How much will new customs fees cost? According to analysis of NCBFAA data on postal shipment fees, packages face duties ranging from $80-200 per item for postal shipments, or full tariffs based on country of origin. For example, packages from countries with tariffs above 25% face $200 per item in fees.
What happens to packages under $800 after August 29? All packages under $800 must go through full customs processing, pay applicable duties, and provide complete documentation. The simplified entry process will no longer be available for commercial shipments. Processing times will increase significantly, and you'll need customs brokers for formal entry procedures. Read our complete guide to new customs processing requirements for detailed timelines, documentation checklists, and carrier-specific changes.
Who enforces the new de minimis rules? U.S. Customs and Border Protection (CBP) enforces the new rules. CBP completed 71 audits in March 2025 that identified $310 million in duties and fees owed, showing increased enforcement activity.
Is de minimis ending legal? It's being contested. The President used authority under the International Emergency Economic Powers Act (IEEPA) to declare national emergencies regarding fentanyl/drug trafficking and trade deficits, then suspended de minimis treatment. However, this use of IEEPA for tariffs is unprecedented and faces legal challenges. In Axle of Dearborn, Inc. v. Department of Commerce, auto parts importer Detroit Axle argues that the president lacks authority under IEEPA to unilaterally levy tariffs—an authority reserved for Congress. The Court of International Trade has denied efforts to restore the exemption for now, but the legal challenge continues.
The August 29 deadline is approaching faster than most businesses realize. The infrastructure for this new reality—customs brokers, enhanced documentation, revised customer communication—takes time to build and test. Start preparing now to avoid operational disruption and maintain customer satisfaction during this major transition.
