De Minimis Rule Ended for China: What Importers Must Do Now

For years, small importers had a powerful advantage: orders under $800 shipped from China entered the US duty-free with almost no customs paperwork. That’s gone now. The de minimis exemption for Chinese goods ended May 2, 2025, and the ripple effects are still reshaping how small businesses source.

If you import from China in any volume — even a few hundred units to test a product — this change affects your landed cost math.

What De Minimis Was

Section 321 of the Tariff Act let low-value imports (under $800 per shipment) enter the US without formal entry, duty payment, or customs paperwork. A single shipment under $800 from China could clear customs in minutes with no duty, no customs broker, no CBP entry.

Retailers, dropshippers, and test importers leaned heavily on this. Platforms like Temu and Shein built their entire US logistics model around de minimis. For small Amazon sellers, it meant testing 200 units of a $15 product without paying 25-170% tariffs on a $3,000 shipment.

What Changed and When

May 2, 2025: The de minimis exemption was eliminated for all goods from China and Hong Kong. No exceptions, no minimum value, no product category exclusions. Entry Type 86 (the simplified entry used for de minimis shipments) is no longer accepted for China-origin goods. All shipments must be filed through CBP’s Automated Commercial Environment (ACE) with full entry documentation.

August 29, 2025: The White House extended the de minimis suspension to all countries — not just China. This hit other major export nations but the China change was already in effect and the most significant for electronics importers.

The result: if you ship 100 units of a $7 Bluetooth speaker from Shenzhen to the US, you now owe full import duties plus Section 301 tariffs on the entire shipment, plus you need a formal CBP entry. Previously that same shipment might have cleared duty-free as 100 separate $7 parcels.

Who This Hits Hardest

Dropshippers using direct China fulfillment. The Temu/Shein-style model — where individual consumer orders shipped directly from Chinese warehouses to US buyers — is essentially dead for goods subject to the new tariffs. The economics don’t work when every $12 order now carries an 8-170% duty plus customs overhead.

First-time importers testing products. Small initial orders (100-300 units) to test a product idea got more expensive overnight. The duty calculation still applies even if your shipment value is $500.

Importers using parcel shipping for small restocks. If you were replenishing stock with small express shipments under $800, you need to change how you ship or how you batch orders.

Amazon and eBay sellers sourcing via AliExpress. Using AliExpress to buy small lots was already a thin-margin game. Duties make it thinner or impossible on most electronics.

The New Cost Reality

Let’s run the numbers on a real example: 500 Bluetooth speakers sourced for $6 each, total invoice value $3,000.

Before (de minimis era, shipping as many small parcels): $0 in duties if each parcel was under $800.

Now, assuming the goods fall under HTSUS 8518.22 (with Bluetooth, subject to Section 301 List 3A):

• Standard duty rate: 0% to 4.9% (varies by subheading)
• Section 301 tariff: 25%
• IEEPA tariff (added 2025): 20%
• Combined rate: roughly 45-50% on invoice value

On $3,000 of goods: $1,350-$1,500 in duties.

Plus you now need a customs broker to file a formal entry. A basic broker entry fee runs $150-$300. On a $3,000 shipment that’s a meaningful cost.

Total landed cost impact: A product that previously cost $6 factory plus $3 shipping might now cost $6 + $3 + $2.70 duty + $0.30 broker fee = $12 landed. Your margin model needs rebuilding.

Some product categories carry higher or lower rates. Use the USITC HTS database at hts.usitc.gov to look up your specific product. See our US customs and duties guide for the full breakdown.

What Importers Are Doing to Adapt

Consolidating shipments into fewer, larger orders. Instead of frequent small restocks, importers are batching orders to reduce the number of formal entries. The per-unit customs cost drops sharply on a $30,000 shipment vs. ten $3,000 shipments.

Switching from DDP express to sea freight. Express shipping from China was attractive partly because the per-parcel de minimis treatment offset the higher per-unit shipping cost. Now sea freight economics look different. A 20-foot container of $60,000 of product has a lower effective customs overhead per unit.

Using bonded warehouses or third-party logistics in the US. Some importers are shifting to US-based 3PLs that receive full-container shipments and fulfill domestically. The customs duty is paid once at port. This adds warehouse cost but eliminates the need for individual entries and reduces delivery times for customers.

Sourcing from other countries for lower-tariff goods. Section 301 tariffs only apply to Chinese-origin goods. If a product can be sourced from Vietnam, India, Mexico, or elsewhere without a quality or price penalty, some importers are diversifying.

Adjusting retail pricing. For some product categories, the margin math still works — it just means a higher retail price. If your competitors are all absorbing the same tariff increase, the market adjusts.

What You Must Do Administratively

If you’ve been importing under de minimis and your shipments are from China, here’s what changes on the paperwork side:

Every shipment now needs a formal CBP entry. This means a commercial invoice with seller, buyer, country of origin, HTS code, and declared value. Get a customs broker if you don’t have one. For small importers, a licensed customs broker handles entries for $150-$300 per shipment. For high-volume shippers, this is worth automating through a trade management system.

You need an Importer of Record (IOR) number — your EIN or SSN registered with CBP. If you’ve never formally imported before, register at CBP’s ACE portal (cbp.gov/trade/ace).

Make sure your HTS classification is correct. Misclassification leads to audits, fines, or overpayment of duties. When in doubt, ask your customs broker for a binding ruling.

The Bigger Picture

This change was specifically targeted at Chinese goods as part of the ongoing trade dispute. The original justification cited fentanyl trafficking through small parcel shipments. The practical effect is that the cost advantage of sourcing from China — which was already narrowing with Section 301 tariffs — narrowed further.

For established importers with real supplier relationships and sea freight operations, the de minimis change is a nuisance, not a catastrophe. For dropshippers whose entire model depended on duty-free direct shipping from Chinese warehouses, it’s a fundamental business model problem.

If you’re rethinking your import structure, start with our true cost calculator to model your new landed costs, and read the Section 301 tariffs guide for a full breakdown of the current tariff stack.

Frequently Asked Questions

What is Section 321 de minimis? Section 321 was a provision in US customs law that let imports valued under $800 enter the country duty-free with minimal paperwork. The original threshold was $200, raised to $800 in 2016. It was eliminated for Chinese goods on May 2, 2025, and for all countries on August 29, 2025.

Does de minimis still apply to goods from countries other than China? The global suspension went into effect August 29, 2025. As of that date, de minimis treatment was suspended for essentially all commercial imports. The situation may evolve — check cbp.gov for current status.

Do I need a customs broker now for small China shipments? Yes, for commercial shipments. A customs broker files the formal entry and can advise on correct HTS classification. Broker fees for small entries typically run $150-$300 per shipment. For ongoing imports, find a licensed broker and establish a relationship.

Can I still test products from China with small orders? Yes, but the economics changed. You’ll pay full duties plus a broker entry fee on any commercial shipment. Build this into your testing budget. A test order of $800 in goods might cost $250-400 extra in duties and fees.

What’s the current duty rate on electronics from China? It varies by HTS code and product type. Most consumer electronics face a combination of standard duty (0-4.9%) plus Section 301 tariff (25%) plus IEEPA tariff (20%), totaling roughly 45-50% on invoice value. Some categories face higher rates. The USITC HTS database at hts.usitc.gov is the authoritative source.

Does de minimis still apply to personal imports? This guide covers commercial imports. Personal use imports in small quantities may still receive different treatment under a separate provision (informal entry). Commercial imports for resale are subject to the new rules.