What Changed
Effective February 24, 2026The de minimis exemption allowing duty-free entry of packages valued under $800 has been suspended for all countries effective February 24, 2026. Every package entering the US, regardless of value, is now subject to customs duties. This eliminates a key exemption that allowed platforms like Temu, Shein, and individual sellers on eBay and Etsy to ship goods from China and other countries duty-free.
Rate Changes
| Item | Before | After |
|---|---|---|
| Packages under $800 | $0 (exempt) | Full duty applies |
Who's Affected
Every US consumer who purchases low-value goods online from foreign sellers. Amazon and eBay marketplace sellers who import products under $800. E-commerce businesses that relied on de minimis for direct-to-consumer international shipments. CBP must now process duties on millions of additional low-value packages.
Analysis
De Minimis $800 Threshold Suspended for All Countries (effective 2026-02-24). The de minimis exemption allowing duty-free entry of packages valued under $800 has been suspended for all countries effective February 24, 2026. The de minimis exemption under 19 U.S.C. § 1321 has historically allowed duty-free entry of imported merchandise valued at $800 or less per shipment. This threshold was raised from $200 to $800 by the Trade Facilitation and Trade Enforcement Act of 2015, and the higher threshold enabled the rapid growth of direct-to-consumer cross-border e-commerce, particularly from Chinese platforms such as Temu and Shein. The volume of de minimis shipments grew to over one billion packages per year by 2024, creating significant customs processing burdens and concerns about goods that circumvented duty collection. The suspension of the de minimis exemption effective February 24, 2026 means that CBP must now process duty collection on an enormous volume of low-value packages that previously entered the US with minimal customs interaction. This creates both compliance costs for e-commerce businesses and practical challenges for CBP in collecting duties on high volumes of sub-$800 shipments. The impact on consumer prices is expected to be significant: a $50 clothing item previously entering duty-free may now face the full MFN rate plus Section 122 surcharge, increasing the landed cost substantially. Amazon FBA sellers who import products directly from overseas manufacturers are particularly affected, as the de minimis pathway that enabled competitive direct-from-China sourcing is no longer available.
Impact & Next Steps
E-commerce businesses and Amazon sellers who relied on the de minimis exemption must now factor full duty costs into their pricing models. The minimum processing fee (MPF) of $33.58 per entry applies to commercial shipments; even low-value packages are now subject to this floor cost. Importers should work with freight forwarders and customs brokers to consolidate shipments where possible, since the per-entry fixed costs make small individual shipments disproportionately expensive.