De Minimis Threshold: When You Don't Have to Pay Import Duties

What Is the De Minimis Threshold?

The de minimis threshold is the maximum value of a shipment that can enter the United States duty-free and without formal customs entry requirements. Under Section 321 of the Tariff Act of 1930 (19 U.S.C. § 1321), goods with a fair retail value of $800 or less, imported by one person on one day, are exempt from customs duties, taxes, and formal entry requirements.

This threshold is per person, per day — not per shipment or per carrier. Technically, a consumer ordering $800 of goods from one website and another $800 from a different website on the same day exceeds the threshold for that day, even if each package arrives separately.

The $800 threshold is the law as it stands. It was raised from $200 to $800 in 2016 under the Trade Facilitation and Trade Enforcement Act. It remains the highest de minimis threshold of any major importing economy in the world.

How De Minimis Works in Practice

When a package valued under $800 arrives in the US, the carrier (UPS, FedEx, DHL, USPS, or a courier) typically clears it through customs using a simplified entry process. No formal customs entry needs to be filed. No duty is assessed. The importer doesn't need a customs broker and doesn't need a customs bond.

Carriers batch de minimis shipments and submit electronic manifests to CBP. CBP reviews the data (shipper, consignee, product description, value) and may flag individual packages for inspection or hold them for formal entry if something looks suspicious — but most packages move through quickly.

Section 321 Entry Types: T86 vs T11

CBP uses different entry types to distinguish how packages are processed:

T86 is the workhorse of ecommerce direct-to-consumer imports. FedEx, UPS, DHL, and USPS file T86 entries for eligible packages automatically. The importer doesn't need to do anything — the carrier handles it as part of their service.

T11 informal entries cover the $800–$2,499 range and are not duty-free — you owe the applicable duty rate. But the entry process is simpler than a formal T01 entry and doesn't require a customs bond.

What De Minimis Does NOT Cover

Several important carve-outs limit de minimis eligibility:

• Commercial quantities: De minimis is intended for personal use or one-time purchases, not for commercial importers bringing in inventory. CBP monitors for importers using repeated de minimis shipments to avoid formal entry and duty obligations.
• Products subject to antidumping or countervailing duty orders: These are explicitly excluded from de minimis treatment and require formal entry even if valued under $800.
• Products on certain restricted or prohibited lists: CITES-listed wildlife, certain agricultural products, products from OFAC-sanctioned countries.
• Section 232 goods: Steel and aluminum products may not qualify for de minimis treatment under certain circumstances.
• Section 301 goods (proposed exclusion): There have been regulatory proposals to exclude Chinese-origin goods from de minimis treatment. See below.

The Political Pressure to Lower the Threshold

The de minimis exemption has become highly controversial, driven primarily by the explosion of direct-to-consumer ecommerce from Chinese platforms (Shein, Temu, and similar). The volume of de minimis shipments entering the US increased dramatically after 2020 — by 2024, over 1 billion de minimis packages per year were being processed.

Arguments for lowering or restricting de minimis

• Domestic retailers and manufacturers argue the threshold creates an unfair advantage for overseas-sourced direct-to-consumer shipments that avoid both duty and the compliance costs of formal entry
• Labor groups argue it enables large overseas retailers to effectively operate duty-free at scale while US businesses pay full duties on wholesale imports
• CBP argues the volume of de minimis packages makes effective enforcement of product safety standards, IP protections, and trade compliance extremely difficult
• Congress has expressed interest in excluding goods subject to Section 301 tariffs (primarily Chinese-origin goods) from de minimis eligibility

What has actually changed

As of early 2026, the statutory $800 de minimis threshold has not been lowered by Congress. However, executive orders and CBP regulatory actions have moved to restrict de minimis treatment for goods subject to Section 301 and IEEPA tariffs — primarily targeting Chinese-origin goods. These changes have been subject to legal challenges and implementation complexity.

Impact on Ecommerce Sellers

If you're selling products you import in bulk (FBA, 3PL warehouse)

De minimis doesn't apply to you at import — you're importing commercial quantities and owe duties on everything. Your customer's purchase is a domestic sale; the import already happened when you brought inventory into your warehouse. Focus your cost reduction efforts on accurate HTS classification and freight optimization.

If you're dropshipping from overseas directly to US customers

Each order shipped individually to a US customer may qualify for de minimis treatment if the retail value is under $800. But you should not rely on this as a permanent business model assumption — the regulatory environment is moving against large-scale de minimis use by commercial shippers.

If you're importing samples or test orders

Small test shipments under $800 qualify for de minimis and can save you duty costs during the product development phase. Once you move to bulk orders, formal entry and duty payment apply.

De Minimis in Other Countries

If you're shipping from the US to international customers, other countries have their own de minimis thresholds — often much lower:

If you export to international markets, your customers may face significant duty obligations even on small orders, which affects your conversion rates and return policies.

How to Check Your Duty Obligations

Whether your import qualifies for de minimis or not, knowing your correct HTS code is the foundation of accurate duty calculation. Use our free HTS lookup tool to get the applicable duty rate and Section 301 status for any product. If you're importing in commercial quantities, run a full HTS audit to ensure you're classified correctly and not overpaying.