The $800 "de minimis" exemption is the rule that let US buyers bring in low-value shipments without paying duty. For years it powered cheap direct-from-overseas ordering, fast cross-border ecommerce, and sample shipments that cleared customs in hours. That era is over. The exemption has been suspended, duties are now owed on those shipments, and the change lands hardest on the one thing small importers can least afford to lose: cash flow.
Here is what the end of de minimis actually means, what you now have to do at the border, and how to keep a sudden wave of upfront duty payments from choking your working capital.
What de minimis was
De minimis, authorized under Section 321 of the Tariff Act, let one importer bring in up to $800 of goods per day free of duty and with a simplified clearance process. It was designed decades ago to spare Customs the cost of processing tiny, low-value parcels. In practice it became the backbone of modern direct-to-consumer importing: brands and marketplaces could ship individual orders straight from a factory or overseas warehouse to a US doorstep without a formal entry or a duty bill. For how Section 321 entries worked in practice, see our Section 321 de minimis guide.
What changed, and when
The exemption did not disappear overnight. It was wound down in stages:
- May 2, 2025 - de minimis ended for goods from China and Hong Kong.
- August 29, 2025 - the suspension was extended to shipments from all countries.
- June 24, 2026 - CBP issued interim final rules indefinitely suspending de minimis for merchandise arriving through every mode of transport, with the international postal network handled under a separate track.
- Mid-2027 - the exemption is set to be permanently repealed by statute, removing it as an option entirely.
The takeaway is simple: whether your goods arrive by ocean, air, truck, or courier, you can no longer assume a low value means a duty-free, paperwork-free entry.
What it means for your imports now
Three things change the day a shipment that used to clear under de minimis now has to be entered properly.
1. Every shipment needs a customs entry. Goods that once moved on a simplified release now require a formal or informal entry filed with CBP. Most importers file these electronically through CBP's Automated Commercial Environment, usually with a licensed customs broker. If you are new to this, start with our guide on how the Automated Commercial Environment (ACE) works.
2. Duty and fees are due up front. You now owe the applicable duty based on the product's HTS classification, plus the Merchandise Processing Fee. On formal entries the MPF runs 0.3464 percent of the customs value, subject to a minimum and a maximum set by CBP; informal entries carry a smaller flat fee. All of it is payable at or shortly after arrival, before the goods are sold.
3. Clearance takes longer. Parcels that used to release in hours can now take days once they move through formal entry and document review. For sellers who replenish just in time, that lag creates both inventory gaps and cash-flow timing problems.
The cost that hides in the fine print
The headline worry is the duty rate. The quieter, often larger problem is that customs brokers generally charge per entry, not per item. A business that used to send many small, separate parcels now pays a fixed brokerage and entry cost on each one. Consolidate 50 small shipments into a few larger entries and the per-entry math improves dramatically; keep shipping them one at a time and the fixed costs stack up fast.
Add it together and the real impact is on working capital. Money that used to sit in inventory, or arrive with the sale, now leaves your account at the border, days or weeks before a customer ever pays you. That is a classic cash-flow gap, and it is exactly the kind that widens quietly until a big season or a large order exposes it.
Five moves to make now
- Model landed cost per entry, not per unit. Rebuild your cost sheet to include duty, the Merchandise Processing Fee, and brokerage on an entry basis so your margins and prices reflect reality.
- Consolidate shipments. Fewer, larger entries spread the fixed per-entry costs across more units and cut total clearance overhead.
- Lengthen your lead times. Plan replenishment around multi-day clearance instead of same-week release so a customs delay does not become a stockout.
- Confirm your HTS classifications. Duty rates swing widely by tariff code. A licensed broker can confirm the right classification and keep you from overpaying or facing penalties.
- Line up working capital before you need it. Because duties are now due at the border, have financing in place to cover that gap rather than draining the cash you need to buy your next round of inventory.
How Drip Capital helps you absorb the shift
The end of de minimis does not change what you sell; it changes when you have to pay. That timing gap, paying Customs and suppliers up front while waiting on customer payments, is precisely what Drip Capital is built to bridge.
Drip provides collateral-free working capital for US businesses, so you can cover duties, entry fees, and supplier invoices without tying up the cash your operation runs on. With funding that moves on the strength of your orders and receivables rather than a bank's slow process, you can keep importing, keep stocking, and keep your margins intact while the rules reset around you.
If the new duty-at-the-border reality is squeezing your cash flow, see how Drip Capital can fund the gap.
Frequently asked questions
Is the de minimis exemption still available in the US? No. As of June 24, 2026, CBP indefinitely suspended the de minimis exemption for merchandise arriving through all modes of transport, following earlier suspensions for China and Hong Kong in May 2025 and for all countries in August 2025. It is scheduled for full statutory repeal in mid-2027.
Do I owe duty on imports under $800 now? Yes. Shipments that previously qualified for duty-free treatment under the $800 threshold now generally require a customs entry and are subject to applicable duties and fees, regardless of their low value.
How do I file a CBP entry for a shipment that used to clear under de minimis? Most importers file a formal or informal entry electronically through CBP's Automated Commercial Environment, typically with the help of a licensed customs broker. Our guide to ACE walks through how the system and filing process work.
What is the Merchandise Processing Fee? The MPF is a fee CBP charges on most imports. On formal entries it is 0.3464 percent of the customs value, within a CBP-set minimum and maximum; informal entries carry a lower flat fee. It is owed in addition to any duty.
How can I manage the cash-flow impact of paying duties up front? Build duty and entry costs into your landed-cost model, consolidate shipments to reduce per-entry fees, and arrange working capital to cover the gap between paying at the border and getting paid by customers. Collateral-free trade financing from providers such as Drip Capital is one way to bridge that timing gap without draining operating cash.
