Executive Order 14324 suspended the $800 de minimis exemption for all countries effective August 29, 2025. CBP then made the suspension indefinite through two interim final rules published June 24, 2026, and Congress repealed the exemption by statute effective July 1, 2027. A parcel that used to arrive with no duty, no fees, and no entry now needs a customs entry, a bond behind that entry, the full duty on its value, a processing fee, and usually someone paid to file it.
The exemption did not shrink. It stopped.
De minimis came from Section 321 of the Tariff Act of 1930, which let CBP waive duty and formal entry on shipments below a set value. The threshold was raised from $200 to $800 in 2016, and for nearly a decade a parcel worth $800 or less entered the United States without duty and without a formal entry. That is the lane direct-to-consumer brands built their pricing on.
The shutdown came in steps. De minimis treatment for goods of Chinese origin was removed first, then Executive Order 14324, signed July 30, 2025, suspended duty-free de minimis for all countries for goods entered on or after 12:01 a.m. EDT on August 29, 2025. The suspension rests on CBP's own authority under 19 U.S.C. 1321(a)(2)(C), which is why it survived the Supreme Court's February 20, 2026 ruling that struck down the IEEPA tariffs. Different authority, different outcome.
On June 24, 2026 CBP published two interim final rules, 91 FR 37789 for non-postal modes and 91 FR 37801 for postal shipments, that suspend the exemption indefinitely for every mode of transport. The postal rule also created a new postal informal entry process effective July 24, 2026, with a delayed compliance date that has since moved to January 20, 2027. And the July 2025 budget act repeals the exemption in statute from July 1, 2027, so from that date there is nothing left to reinstate without new legislation.
What a low-value shipment costs now
Start with the entry itself. Informal entry is generally available up to $2,500, and above that a formal entry is required. Either way the shipment needs an entry, and entries need a bond and a filer. The duty is the full duty on the value, including any Section 301 or Section 232 duty that applies to the goods. Then comes the merchandise processing fee, and the broker's fee for filing.
The arithmetic that matters is per parcel, not per container. A $40 order that used to land at $40 plus shipping now carries duty, a processing fee, and a share of the filing cost. On low-value goods those fixed costs can exceed the duty itself, which is why some brands raised free-shipping thresholds, consolidated shipments, or stopped shipping low-value orders to the United States altogether. The right answer depends on the product's duty rate and the average order value, and it has to be recomputed per SKU rather than assumed across the catalog.
One more cost hides in the paperwork. The new postal informal entry process requires 10-digit HTS classification, bonded filers, and monthly duty payment. A brand that used to ship parcels with a short description and a value now needs a classification for every SKU, and a wrong classification is a penalty risk, not a rounding error.
The workarounds that do not work
Moving inventory to a warehouse closer to the customer does not restore the exemption. The suspension is mode-agnostic and location-independent: it applies to postal and non-postal shipments, to air, ocean, and truck, and it does not depend on where a warehouse sits. A warehouse in Mexico does not restore duty-free treatment for goods ultimately entering the United States.
Routing through another country does not work either, because the suspension applies to all countries of origin. There is no jurisdiction left to route through for de minimis purposes. And splitting a shipment into smaller parcels does not help, since the exemption is gone at every value, not capped at a lower one. The threshold question is now academic while the suspension stands.
Bonded warehousing is the one mechanism that actually changes the timing. Goods may remain in bond for up to five years from importation under 19 CFR Part 144, duty is paid on withdrawal at the rate then in effect, and goods exported from bond incur no U.S. duty. That is a deferral, not an exemption, and it only helps if the goods might leave the country again. For goods that will be sold in the United States, the duty is due, and the planning question is how to price it, not how to avoid it.
Frequently asked questions
Is the $800 de minimis exemption still available in 2026?
No. Duty-free de minimis treatment was suspended for all countries on August 29, 2025, made indefinite by CBP regulation on June 24, 2026, and repealed by statute effective July 1, 2027. Shipments valued at $800 or less now require an entry and pay all applicable duties, taxes, and fees.
What replaced de minimis for low-value shipments?
Every low-value shipment now needs a formal or informal entry, a bond, and payment of the full duty on its value plus a processing fee. Informal entry is generally available up to $2,500. Postal shipments use a new informal entry process that requires 10-digit HTS classification and bonded filers.
Can I still ship duty-free by routing through another country?
No. The suspension applies to all countries of origin, so there is no jurisdiction left to route through for de minimis purposes. It also applies to every mode of transport, so changing the shipping method does not restore the exemption.
Does the de minimis suspension affect USMCA goods?
Canadian and Mexican goods that qualify under USMCA can still enter duty-free, but only with a proper claim of origin. The USMCA preference is a separate mechanism from de minimis, and it needs its own certification and origin analysis.