Source: https://rivet.global/blog/us-de-minimis-repeal-2027
Published: 2026-11-02 · Updated: 2026-11-02 · By William Sunjo M.

# The end of US de minimis: what July 2027 means for cross-border sellers

The $800 US de minimis exemption was suspended in 2025 and the law repealing it takes effect on 1 July 2027. What changes for e-commerce sellers shipping to the US.

## Key takeaways

- Section 321 let shipments worth $800 or less enter the US free of duty and with little paperwork.
- An executive order ended duty-free de minimis treatment for shipments from China and Hong Kong in May 2025 and for every country on 29 August 2025.
- The One Big Beautiful Bill Act, signed on 4 July 2025, repeals the statutory exemption for commercial shipments from 1 July 2027.
- Every commercial parcel to the US now needs a customs entry, a tariff classification and duty paid by someone.
- Sellers should decide who pays duty, price it in, and keep the payment records that match each entry.

The US de minimis rule let parcels worth up to $800 enter the country duty free with a light customs entry. Whole business models grew on it, especially sellers shipping single orders from warehouses abroad straight to US customers. It is gone now, in two steps.

## What happened to de minimis

| Date | Change |
|---|---|
| 2 May 2025 | Duty-free de minimis ended for shipments from China and Hong Kong |
| 4 July 2025 | One Big Beautiful Bill Act signed, repealing the statutory exemption for commercial shipments from 1 July 2027 |
| 29 August 2025 | Duty-free de minimis suspended for shipments from every country by executive order |
| 1 July 2027 | Statutory repeal takes effect |

So the 2027 date does not add a new burden for most sellers. It turns a suspension into permanent law, which matters for planning: there is no realistic case for the old rule coming back.

## What sellers now have to do

Every commercial shipment needs a proper entry. In practice that means:

1. **Classify each product** under the Harmonized Tariff Schedule. The code sets the duty rate.
2. **Declare the value** and the country of origin correctly. Country of origin also decides which additional tariffs apply.
3. **Decide who is importer of record.** That party pays duty and answers to CBP.
4. **Pay the duty**, directly or through a carrier or customs broker who bills you.

Postal shipments have their own duty method under the 2025 order, collected through the carrier. Ask your carrier which applies to you.

## Who should pay: seller or buyer?

This is an Incoterms choice. Under DDP (delivered duty paid), you pay and the customer gets no surprise at the door. Under DAP (delivered at place), the customer pays before delivery, and many refuse the parcel. For consumer sales, DDP almost always converts better. See [Incoterms explained](/blog/incoterms-explained) for the full list.

## The money side

- **Price duty in.** Work out landed cost per product: price, shipping, duty, broker fee.
- **Keep records that match.** Each duty payment should tie to an entry number and an order. Your accountant will need them, and so will CBP if it audits.
- **Mind currency.** If you earn in euros or pounds and pay US duty in dollars, a USD balance avoids a conversion on every bill. Our [guide to FX risk](/blog/foreign-exchange-risk-for-small-businesses) shows how small rate moves eat thin margins.
- **Watch cash flow.** Duty is paid when goods enter, often weeks before the sale settles.

The article on [how tariffs get paid](/blog/how-tariffs-get-paid) walks through the payment mechanics with CBP and brokers.

## Paying duty and brokers from Rivet

A Rivet USD account comes with ACH and wire details in your company's name, so carriers and customs brokers can be paid in dollars without a conversion each time. See [Bank accounts](/accounts).

## Questions

### What was the US de minimis exemption?

Section 321 of the Tariff Act let goods worth $800 or less, imported by one person on one day, enter the US without duties or taxes and with a simplified entry. It made direct-to-consumer shipping from abroad cheap.

### Is de minimis still available in the US?

Duty-free treatment was suspended for all countries from 29 August 2025 by executive order. The law signed in July 2025 repeals the exemption for commercial shipments with effect from 1 July 2027, so the change no longer depends on the executive order alone.

### Who pays US import duty on a parcel?

The importer of record. For delivered-duty-paid sales that is usually the seller or its carrier or customs broker. For delivered-at-place sales the buyer pays before delivery. Your Incoterms decide which.

### Do gifts between individuals still enter duty free?

A separate exemption for bona fide gifts of limited value exists in US law. The 2025 changes focus on commercial shipments. Check current CBP guidance before relying on it.