De minimis is a Latin term, which literally translates to "of the smallest". In the context of international trade, it refers to a provision allowing shipments below a specified value to be imported duty free and with minimal or no documentation. Many countries have this provision, although with differing amounts, as it helps to streamline the customs process and save the regulator costs. Yes, it is subject to abuse. That is not new, but the regulator has provisions in place to identify suspect shipments.
The implementation of President Trump's Executive Order which removes the de minimis exemption for goods valued at $800 or less imported into USA is effective from 12.01am US Eastern Time on 29 August 2025. These goods will then incur a significantly increased duty rate, which as I understand it, will either be the applicable ad valorem rate or a flat rate as follows for goods sent through the international postal network. This rate will apply for the first six months, after which the appropriate ad valorem rate for the country of origin of the goods (not the consignment) will apply.
Countries with an effective IEEPA tariff rate of less than 16 percent: $80 per item;
Countries with an effective IEEPA tariff rate between 16 and 25 percent (inclusive): $160 per item; and
Countries with an effective IEEPA rate above 25 percent: $200 per item.
(d) For all international postal shipments subject to the methodologies described in subsections (b) and (c) of this section, the country of origin of the article must be declared to CBP.
The term “effective IEEPA tariff rate” means the total duty rate applicable to those goods from that origin. Some goods such as steel and aluminium are subject to a higher tariff rate, while others are exempt.
Other origins are subject to varying ad valorem duty rates in lieu of any other duties, including those imposed by prior Executive Orders. Dumping duties are separate to these rates. Imports other than by post will be subject to these new duties, including those announced by President Trump under the International Emergency Economic Powers Act (IEEPA). Could this sometimes provide a potential cost advantage for some importers using postal services? (I didn’t tell you that)
An additional duty of 40% on top of the prescribed rates has also been imposed on goods arriving in the US which are found to have been transhipped into the US from the original country of origin through another country or countries in an attempt to secure lower rates than would otherwise be payable on exports from those countries.
Therefore, and just to reiterate my past advice. Note that sending foreign origin goods from Australia to US does not change their origin, no matter how long it’s been here or what your mate told you and no matter what you read where. (AU Post – please check your online advice. You are being probably misquoted at me)
Also, this is not professional advice. It’s an opinion piece. Don’t sue me. Like everyone else I’m getting too much information from social media and other networks with too much of it inflammatory in tone.
First published in the Daily Cargo News on 2 May 2025.