UPDATE: October 1, 2025

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Things continue to evolve regarding duties and taxes on imported goods to the United States. The de minimis exemption, Section 321 of the Tariff Act of 1930, for low-cost goods shipped from all countries (excluding Canada and Mexico) will end at the end of this month. Starting on August 29, 2025, shipments valued at or below $800 sent to the U.S. outside of the international postal network (i.e. USPS and its foreign postal partners) will be subject to duties and tariffs.

This shift in trade policy impacts both courier (i.e. UPS, FedEx, etc.) and postal (i.e. USPS and its foreign postal partners) low-value imports. Courier shipments will face full duties and tariffs and postal shipments will be assessed by either:

  • Ad valorem duty: Percentage based on the country of origin tariff rate (IEEPA).
  • Specific duty: Flat rate between $80 and $200 per item, depending on the country’s tariff.

Existing exemptions for personal travelers and small gifts remain in place. Visitors to the U.S. can still bring back up to $200 in personal items duty-free and personal gifts valued less than $100 remain duty-free.

What does this mean for businesses and consumers?

The elimination of the de minimis exemption will present ecommerce platforms, marketplaces, sellers, and small businesses with steep challenges with regard to cost and speed.

Those that ship low‑value, duty-free goods into the U.S. from other countries will likely see increased costs from new taxes and duties. If duties and taxes aren’t paid upfront (Delivered Duties Paid), customers may face unexpected charges at delivery. In these cases, many customers may refuse to accept packages with surprise fees, triggering costly returns. In some cases, returns may result in merchants paying duties and taxes twice, depending on the origin country.

Additionally, the added complexity and scrutiny on compliance may mean slower delivery times, as every parcel will be subject to customs duties and formal clearance procedures. This means more shipments, regardless of value, are likely to be held up by customs.

3PL providers are also under pressure to adapt and help customers navigate the shift by using formal entry processes and billing downstream. 3PL providers are under pressure to adjust their operations as the U.S. ends duty-free de minimis treatment. This means they must now file formal customs entries for more shipments, offer to pay the required duties and fees up front, and then invoice the merchants for those costs afterward (“billing downstream”), while also helping those merchants understand and manage the new process.

For consumers, this means potentially higher costs, slower delivery times, and overall frustration. Customers can expect higher prices and fewer product variety on items valued at or under $800 for overseas purchases, especially niche items previously imported duty-free. Not to mention, surprise fees at delivery does not result in a positive customer experience.

How should your business react?

There are multiple ways companies can respond to the changes, from cost management to supply chain strategy. Businesses should re-evaluate their pricing and decide whether or not to absorb the duties and fees or pass them along to consumers. Here are some things to consider:

  • Cost management: Re-evaluate pricing to absorb or pass on duties and fees.
  • Supply chain strategy: Consider U.S.-based warehousing or sourcing to avoid customs costs.
  • Compliance preparedness: Implement accurate country of origin and formal entry procedures.
  • Logistics partnership: Collaborate with experts or customs brokerages.
  • Legal monitoring: Track court developments and have contingency plans in place.
  • Evaluate your checkout: Check if your platform can show shipping and estimated duties at purchase.
  • Prepare customer service: Train your team to manage delays, questions, and disruptions.
  • Stay informed: Follow reliable resources like the White House’s Presidential Actions and this blog post, which will be updated as new advancements are announced.

Shipping Requirements to Keep In Mind

If you’re shipping to the U.S., there are new requirements due to changes in de minimis exemptions and tariffs. To help avoid delays and holds by U.S. Customs and Border Protection (CBP), make sure your shipments include the following:

  • Commercial invoice – Every shipment to the U.S. must include a complete and accurate invoice, provided electronically to your broker/customs.
  • Invoice details – Include country of origin, country of manufacture (for certain goods like cosmetics), 10-digit HTSUS code, item quantity, and value. For formal entries, provide an Importer Tax ID (EIN or SSN).
  • Clear item descriptions – Be specific and precise. Avoid vague terms like “samples” or “parts.”
  • Receiver contact details – Both email and phone numbers are required.
  • Duties and taxes – Make sure import fees are paid to prevent holds.
  • Restricted or regulated items – Items like food, cosmetics, medical devices, and perishables require additional FDA documentation.
  • FDA-regulated shipments – For food, cosmetics, and medical devices, you must follow FDA rules (e.g., file Prior Notice for food, include FDA registration numbers for medical devices, ensure proper English labeling).

Following these steps helps keep your shipments moving without unnecessary delays. For more details, visit the UPS Tariff Page, a step-by-step commercial invoice guide from UPS, or the U.S. FDA website.

How can ShipStation help you adapt to the evolving trade landscape?

The pace at which global trade and cross-border policies change makes it increasingly important for sellers to stay resilient. This flexibility is especially critical when the shipping landscape changes so quickly and frequently as it does today. Fortunately, responding to new challenges doesn’t have to be that much of an added stress. With the right tools and software systems in place, you can get ahead of unexpected challenges or react to them appropriately.

From smarter ways to manage duties and taxes, to cross-border fulfillment and carrier flexibility, ShipStation is continuously innovating to equip businesses with the tools and capabilities they need to thrive, no matter how the world changes:

  • ShipStation integrates with over 200 carriers to give you the international shipping options that are right for your business. Consider GlobalPost in the UK, a low-cost, hassle-free international shipping option to help offset cost.
  • Customs forms from ShipStation are simple and can be automatically populated to avoid mistakes and additional costs.
  • ShipStation’s Product Catalog allows you to add important international shipping details like Harmonized System (HS) codes, plus weights and dimensions to ensure accurate rates and compliance.
  • COMING SOON: ShipStation already helps customers find the best shipping rates with Automated Rate Shopper, and we’re soon expanding that capability to international shipping. This will provide clear indications on which features are duties and taxes paid (DDP) or duties and taxes unpaid (DDU) so you always make the right choice.
  • COMING SOON: With our upcoming Duties & Taxes Guaranteed feature, you’ll pay a guaranteed rate for duties and taxes and never worry about changes or adjustments.

ShipStation API

  • Automated customs and compliance simplifies customs documentation, duties and tariffs calculations, and compliance requirements with a Duties & Tariffs Estimator and Customs API.
  • Multi-carrier support provides a wide-range of international carriers, allowing sellers to compare shipping rates and choose the best options for their needs.
  • Rate shopping allows merchants and 3PLs to keep shipping costs as low as possible, so they can offer the best possible prices to their customers.
Todd Greenbaum
Todd Greenbaum
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