Effective 12:01 a.m. ET, August 29, 2025, goods which otherwise would have qualified for de minimis treatment (single parcels delivered by express couriers that are intended for one recipient on one day and valued under $800) will no longer be exempt from customs duties and require a formal customs entry.
How tariffs are being applied
The duty rate for de minimis goods will vary depending on the origin of the product and will be equivalent to the universal tariff rate imposed against the imported goods of that country under the International Emergency Economic Powers Act (IEEPA) as set out in the executive order, plus the Most Favored Nation (MFN) tariff rate. For example, the current IEEPA tariff for Canada-origin goods is 25%, plus the MFN rate (which varies by product). Therefore, all low-value, Canada-origin goods entering the U.S. will have a 25% tariff applied, plus the MFN rate specific to that product.
Formal customs entry requirements
With tariffs being applied against low-value parcels, these goods will also require a formal customs entry where one was not required in the past. These entries must include the requisite customs information for admission into the commerce of the United States, including all regulatory requirements under any relevant Partner Government Agencies (PGAs), which include agencies such as the Environmental Protection Agency, Federal Drug Administration, and others.
Goods imported through the postal network
Carriers are responsible for collecting and remitting duties to CBP for de minimis goods imported into the United States through the international postal system (i.e., not through express courier). Two methods are available for carriers to select from, the Ad Valorem method and Specific Duty method.
The ad valorem method is levied by applying the Effective IEEPA Tariff Rate (as outlined in the executive order) applicable to the country of origin of the product to the value of the good. The Specific Duty method is based on the Effective IEEPA Tariff Rate applicable to the country of origin of the product and based on three tiers with duties ranging from $80-$200 per parcel. The Specific Duty method will only be available for a six-month period, after which only the ad valorem method will be applied.
Fate of IEEPA tariffs
It is important to note the legality of using IEEPA to impose tariffs is being challenged in federal court. Should the courts choose to rule against the legality of using IEEPA to impose new trade policies through executive order, de minimis could potentially be reinstated. However, a reinstatement would be only temporary as the One Big Beautiful Bill, which was passed into law on July 4, 2025, removed the duty exemption for de minimis goods effective 2027.
Livingston is here to help
Should you have any question about the new de minimis policy or require assistance with formal customs entries on low-value shipments, we’re here to help. Contact Livingston for more information.