New Bill Ends 'De Minimis' Rule: Expect Higher Costs and Slower Shipping on Cheap Imports

This bill, officially called the “Closing the De Minimis Loophole Act,” is about to change how you get those cheap goods you order online from overseas. Essentially, it eliminates a long-standing customs rule that allowed small shipments—under a certain dollar amount—to enter the U.S. without paying duties or going through the full, formal customs inspection process. This fast-track treatment, known as “de minimis,” is what makes it possible for platforms selling super-cheap items to deliver them quickly and without adding tariffs.

The End of Easy Entry for Small Parcels

What this bill does is strike out the part of the Tariff Act of 1930 (specifically Section 321(a)(2)(C)) that created this exemption. For anyone who orders directly from manufacturers or sellers in certain countries, this is going to be a big deal. The change is immediate for goods coming from China, though there’s a tiny three-day grace period for items already in transit. For shipments from every other country, the new rules kick in 120 days after the bill becomes law. This staggered approach means the cost and time involved in importing small parcels are about to jump.

More Paperwork, More Costs

With the de minimis rule gone, the Treasury Secretary has 120 days to figure out the new procedures for these informal entries. The goal is to make sure the U.S. can accurately collect duties and taxes on these formerly exempt shipments. To do this, they’re planning to require shippers to provide detailed 10-digit Harmonized Tariff Schedule (HTS) codes for certain types of goods (like textiles and apparel). If you’re a small business owner who imports fabric or finished clothing, this means a significant increase in administrative hassle and the cost of customs brokerage, since you now have to classify every low-value shipment precisely. This new regulatory burden will likely translate into higher prices for consumers.

The USPS Gets Drawn In

Another major logistical headache is how the bill handles shipments coming through the mail. The Treasury Secretary now has to work with the Postmaster General to set up new fees and procedures for international mail that previously slipped through under the old de minimis rules. Think about the sheer volume of small packages the USPS handles globally—this coordination effort is complex and will likely result in new fees and slower processing times for consumers receiving goods via international postal services, making that cheap trinket you ordered a lot less convenient.

Who Wins and Who Pays?

On one hand, this change benefits domestic manufacturers who have long argued that the de minimis rule gave foreign competitors an unfair advantage by allowing them to bypass taxes and inspections. It also means the government stands to collect more in duties and taxes. On the other hand, the cost is likely borne by the consumer and the small e-commerce seller. If you’re a consumer who relies on low-cost international shipping for inexpensive household items or apparel, expect to see the final price tick up to cover new duties, taxes, and the increased shipping/processing fees required to comply with the new, stricter customs rules.