The U.S. government has ended the long-standing “de minimis” exemption, which allowed low-value packages to enter the country with simplified customs processing and no duties. The move has triggered pushback from Senate Finance, with key lawmakers warning that the sudden change could disrupt consumers, retailers, and international e-commerce operations. Here’s a breakdown of the change, who it affects, and strategies to minimize its impact.
What Changed
Previously, packages below a certain value could enter the U.S. without full customs checks or duties. The elimination of this exemption means millions of small parcels now face standard customs processing, including tariffs and documentation requirements. This affects direct-to-consumer brands, online marketplaces, and postal consolidators that relied on frequent, low-value shipments to U.S. addresses.
Why It Matters
The change increases costs for importers, who may pass these expenses on to consumers through higher prices or shipping fees. Small businesses with limited compliance infrastructure now must handle tariff classifications, country-of-origin documentation, and broker coordination at scale, adding both administrative complexity and financial risk.
Who Is Affected
Retailers, marketplaces, and SMEs shipping from the UK, EU, and other regions into the U.S. will feel immediate operational impacts. U.S. shoppers may experience longer delivery times, additional surcharges, or stricter return policies as businesses adjust to the new rules.
Senate Finance Reaction
Senate Finance Committee leaders have criticized the abrupt implementation, warning it could lead to unnecessary shocks for both businesses and households. Oversight hearings, agency clarifications, and potential legislative tweaks are possible if the impacts prove widespread.
Steps for Businesses
Companies can take several proactive measures to manage the transition:
- Audit Exposure – Identify which SKUs and shipment volumes previously used the de minimis pathway and recalculate landed costs.
- Secure Customs Brokerage – Partner with brokers, update HTS codes, and streamline electronic filings to avoid delays.
- Verify Documentation – Confirm supplier declarations, labeling, and preferential claims to prevent penalties.
- Adjust Fulfillment – Consider U.S.-based inventory, bonded warehouses, or regional hubs to maintain delivery timelines.
- Update Customer Communication – Inform buyers about potential fees, revise shipping policies, and clarify duty-paid vs. duty-unpaid options.
Consumer Implications
Shoppers may notice higher overall prices and longer delivery estimates. Returns could take longer and come with stricter conditions as merchants work to minimize customs complications.
UK and EU Seller Considerations
Merchants sending goods from the UK and EU should align pricing, HS codes, and documentation with U.S. customs rules. Evaluating partial U.S. warehousing or local distribution can help stabilize delivery performance, especially during peak periods.
What to Watch
Businesses should monitor updates from U.S. Customs and Border Protection for guidance on phased implementation or low-risk entry processes. Senate Finance oversight may result in gradual rollouts, exemptions, or additional clarity for small businesses.
