PayPal Editorial Staff

September 10, 2025

From 29th August 2025, new customs rules take effect ending the de minimis exemption for low-value shipments. Packages worth less than US$800 will face the same duties and customs entry requirements as larger shipments. For ecommerce sellers and merchants targeting US consumers, these changes mark a major shift.

What is changing?

Previously, shipments valued under US$800 were exempt from duties and complex customs entry forms, allowing a streamlined, cost-effective way to serve US buyers. The de minimis exemption was designed for an era when low-value imported goods were rare and duty collection costs outweighed the tax revenue. As global ecommerce surged, foregone customs duties increased, prompting the exemption’s elimination. Now, all shipments, regardless of value, must clear US customs and pay the relevant duty starting August 29, 2025.

What is exempt and what isn’t

The new rules apply to most physical goods shipped to US consumers. However, personal correspondence, letters, standard documents, and other non-commercial shipments remain exempt—they do not require customs entry or duty payments. Merchandise, gifts over $100, products for sale, or promotional goods now require full customs declaration and payment of applicable duty, no matter the shipment’s value. Digital/download-only products are unaffected. When in doubt, check with your postal authority or US Customs and Border Protection for classification.

How does this affect sellers targeting US customers?

From August 29, US-bound packages will only be allowed entry if the correct duty is paid. Merchants using commercial couriers need to calculate, collect, and pay duties for each shipment and show US buyers the full landed cost—including duties—at checkout.

If Using the Postal Service

Transitional rules apply until February 28, 2026. Many postal operators lack tools to calculate US duty and will levy a temporary flat charge ($80, $160, or $200 per item, varying by country origin). Check with your national postal service. Some have suspended US-bound shipments during the transition.

If Using a Commercial Courier

Commercial couriers do not benefit from transitional rates and must collect duties by product category and origin. Many offer online duty calculators. Some carriers have also temporarily suspended US deliveries while updating compliance systems.

https://www.paypal.com/us/brc/article/us-de-minimis-exemption-ends-2025