The elimination of the U.S. de minimis duty exemption has dramatically reshaped the flow of low-value international shipments, placing new operational pressure on carriers and merchants—even as U.S. Customs and Border Protection (CBP) reports it has managed the transition with minimal disruption.
The de minimis rule previously allowed shipments valued under $800 to enter the United States without duties or formal customs declarations. That exemption was phased out in 2025—first for shipments from China and later for the rest of the world—bringing billions of previously duty-free parcels under full customs scrutiny.
CBP says it has adapted effectively. As of mid-December 2025, the agency reports collecting more than $1 billion in duties from shipments that would previously have entered duty-free, while maintaining cargo processing times largely consistent with historical norms. CBP also points to a significant increase in seizures of unsafe, counterfeit, or non-compliant goods since the change took effect, reinforcing the national security rationale behind ending de minimis treatment.
Operational Burden Shifts to Carriers and Shippers
While CBP maintains that its systems are handling the increased workload, delivery companies are facing a far more complex environment. Every package entering the U.S. must now be formally declared, requiring detailed product descriptions, country-of-origin data, materials disclosures, and accurate 10-digit Harmonized Tariff System (HTS) codes.
For many carriers—particularly postal operators and international parcel services—this level of documentation represents a major operational challenge. Several foreign postal services and logistics providers have suspended or limited service to the U.S., citing the inability to comply with the new customs requirements at scale.
Industry participants note that clearance delays are typically modest—often one to two days—when documentation is accurate. However, incomplete or incorrect paperwork can result in shipment holds, unexpected costs, and customer dissatisfaction.
Documentation Accuracy Becomes Critical
The shift has significantly raised the stakes for data quality in cross-border shipping. Inaccurate classifications, missing product details, or errors in declared values can disrupt clearance and increase costs throughout the supply chain.
To address this, major carriers are increasingly turning to automation and artificial intelligence to help shippers complete documentation correctly at the time of shipment creation. These tools aim to reduce errors, streamline customs submissions, and minimize downstream delays.
Duty Collection Creates New Friction
Another challenge emerging from the end of de minimis is duty payment. Customs now collects applicable duties before parcels are released, but not all carriers have systems in place to handle those transactions seamlessly.
When duties are not prepaid, recipients may be billed upon delivery—often unexpectedly. In some cases, customers refuse payment, triggering return shipments that can cost more than the value of the goods themselves. As a result, some shipments are abandoned or destroyed rather than returned to origin.
Industry experts increasingly recommend using delivered-duty-paid (DDP) shipping models to avoid these complications and ensure a smoother customer experience.
A Structural Shift in Cross-Border Commerce
Despite the strain on delivery networks, CBP maintains that it is well-positioned to handle the expanded scope of enforcement and screening. From an industry perspective, the end of de minimis represents a permanent structural shift rather than a temporary disruption.
Cross-border shipping is now more transparent, more regulated, and more data-intensive than ever before. Companies that adapt by investing in compliance, accurate documentation, and proactive duty management will be best positioned to navigate the new landscape—while those relying on legacy processes may face continued friction.
