The de minimis exemption that allowed packages valued under $800 to enter the United States duty-free is expiring next Friday. In 2024, 1.36 billion packages totaling $64.6 billion used the exemption. Multiple European postal services have suspended most merchandise shipments to the U.S. amid uncertainty over how new duties will be applied and collected. A U.S.-EU trade framework sets a 15% tariff on most EU-origin goods, making low-value parcels subject to tariffs. Carriers cite unresolved questions about duty collection, required data, transmission to U.S. Customs, and tight timing to implement changes by Aug. 29.
The end of an exemption on tariff duties for low-value packages coming into the United States is causing a wide array of postal services to pause shipping as they await for more clarity on the rule. The exemption, known as the " de minimis " exemption, allows packages worth less than $800 to come into the U.S. duty free. A total of 1.36 billion packages were sent in 2024 under this exemption, for goods worth $64.6 billion, according to data from the U.S. Customs and Border Patrol Agency. It is set to expire next Friday. On Saturday, multiple postal services around Europe announced that they are suspending the shipment of many packages to the United States amid a lack of clarity over new import duties.
"Key questions remain unresolved, particularly regarding how and by whom customs duties will be collected in the future, what additional data will be required, and how the data transmission to the U.S. Customs and Border Protection will be carried out," DHL, the largest shipping provider in Europe, said in a statement. The company said starting Saturday it will "will no longer be able to accept and transport parcels and postal items containing goods from business customers destined for the US."
A trade framework agreed on by the U.S. and the European Union last month set a 15% tariff on the vast majority of products shipped from the EU. Packages under $800 will now also be subject to the tariff. Many other European postal services say they are pausing deliveries now because they cannot guarantee the goods will enter the U.S. before Aug. 29. They cite ambiguity about what kind of goods are covered by the new rules, and the lack of time to process their implications.
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