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The U.S. Officially Ends Global De Minimis Rule: What Businesses Need to Know to Prepare and Adapt

A major shift in U.S. customs policy is drawing close attention from exporters. Starting August 29, 2025, the United States will officially end the global De Minimis tax exemption rule. This decision will have direct and far-reaching impacts on businesses exporting to the U.S., as well as consumers.

So, what is the U.S. De Minimis law, and why has this policy been abolished?

  1. What is the De Minimis Rule and Why Did the U.S. End It?

The De Minimis exemption rule allowed goods valued under $800 to enter the U.S. duty-free, with simplified customs procedures. Historically, the U.S. De Minimis law dates back to 1938, when the exemption threshold was only $5. A major turning point came in 2015, when the threshold was raised to $800, paving the way for the cross-border e-commerce boom.

E-commerce giants such as Shein and Temu maximized this advantage, causing duty-free shipments to skyrocket nearly tenfold within a decade—from 139 million parcels in 2015 to 1.36 billion parcels in 2024.

According to the White House, around 4 million small parcels entered the U.S. tax-free every day, making De Minimis a vital gateway for global e-commerce.

The U.S. decided to abolish the De Minimis rule to:

  • Protect domestic businesses from unfair competition
  • Increase tax revenue from imports
  • Tighten control over supply chains, especially imports from China

2.    Direct Impacts of Ending the De Minimis Rule

Increased Shipping Costs to the U.S.

With the end of De Minimis, shipping costs to the U.S. are expected to rise significantly due to a new tax structure. Exporters will now face:

●       Tariffs: 20–90% of product value (previously duty-free)

●       Customs processing fees: $50–200 per shipment for new inspection procedures

●       Fixed fees: $100 per shipment under $2,500

●       Compliance costs: $20–50 per shipment for proper documentation

●       Storage fees: $5–15/day due to extended clearance times

New Customs Procedures

The updated customs requirements include:

  • Full product declarations regardless of value
  • Detailed and accurate certificates of origin
  • Stricter security screening processes
  • Clearance times extended to 1–3 business days

Impact on Logistics

  • Congestion at major U.S. airports such as JFK New York
  • 25 countries suspending mail services to the U.S.
  • An estimated $22 billion loss in the global air freight industry
  • Severe disruptions in global supply chains

3.    Doanh nghiệp Việt Nam cần chuẩn bị và ứng phó như thế nào ?

The new U.S. policy is already affecting major international postal companies. Carriers such as SingPost (Singapore), India Post, and DHL (Germany) have suspended De Minimis shipments to the U.S. since August 25, 2025.

As a result, 25 countries have halted parcel deliveries to the U.S., citing increased costs and complex procedures. The Universal Postal Union (UPU) is now working with member states to develop solutions, including a paid postal system for cross-border tax collection.

For Vietnamese exporters, the following strategies are essential:

  • Adjust export business models to adapt to the new U.S. policy
  • Shift from small orders to consolidated shipments (minimum 50–100 products per lot) to cut logistics costs
  • Build strategic partnerships with U.S. and Vietnamese distributors and freight forwarders to share tariff risks, instead of selling directly B2C
  • Choose reliable CSA agents, airlines, and shipping lines with proven experience in U.S. customs procedures to minimize costs and delays