A major shift in U.S. trade policy is set to take effect in 2027, as a new law repeals the long-standing de minimis exemption that has allowed low-cost imports to enter the country without duties or taxes.
Under the expansive trade reform package signed into law on Friday, imports valued at less than $800 will no longer qualify for duty-free entry starting July 1, 2027. While personal travel purchases and legitimate gifts from foreign senders to U.S. residents will still be eligible for exemption, commercial shipments will no longer benefit from this trade tool.
In addition, the new law introduces a civil penalty system for violations of customs law involving the misuse of de minimis entry. Offenders may be fined $5,000 for a first infraction and up to $10,000 for repeat offenses. These penalties take effect 30 days after the bill’s enactment.
The decision follows years of scrutiny over the use of de minimis for commercial purposes, particularly amid concerns over illicit goods and revenue loss from duty-free packages. The policy shift builds on earlier efforts to remove de minimis eligibility for shipments from certain regions and to tighten controls on small parcel imports.
Prior to recent restrictions, a substantial share of de minimis shipments originated from overseas manufacturers using direct-to-consumer models. The upcoming repeal is expected to impact global e-commerce supply chains that have depended on the exemption to minimize costs and delivery times.
Analysts anticipate that importers relying on low-value shipments will need to adjust by consolidating shipments, rerouting inventory through domestic fulfillment centers, or exploring alternative compliance strategies as the U.S. customs landscape continues to evolve.
