De Minimis Dies on 8/29

Aug 27

What Changes, Who Pays, and How Operators Keep Delivering

Perspective: operations oversight. Objective: protect customer experience and margin as policy changes. What follows is a practical brief on the upcoming de minimis suspension and the procedures to keep deliveries predictable. My work sits above the loading dock—operations oversight that turns policy shifts into workable procedures so teams keep shipping on time and on margin. This brief translates the August 29, 2025 U.S. suspension of duty‑free de minimis on most low‑value imports into plain‑English steps and examples you can deploy over the next 14 days.¹ ²

Last updated: August 26, 2025

Quick summary — does this affect you? If you manufacture, resell, or run a DTC brand, you’ve likely heard about “de minimis” and its removal. If you import inventory into the U.S. for resale, nothing on Friday changes the fact you already file consumption entries and pay duty/MPF/HMF—the headlines are about DTC parcels, not your stocking containers. If you ship from a U.S. warehouse to customers in the EU/UK/elsewhere, their VAT/charges still apply; use IOSS (≤ €150) or UK ≤ £135 VAT‑at‑checkout to avoid doorstep collections.³ ¹⁰ If you hold stock in the EU/UK and ship worldwide, you’ll use OSS/IOSS/UK VAT for local sales, and normal import rules (including the U.S. 8/29 change) when shipping back into the U.S. Bottom line: if your U.S. customer order physically crosses the border in a non‑postal parcel, take notice now; otherwise, treat this as a prompt to tighten VAT/DDP hygiene and documentation.

1) What actually changes on 8/29

De minimis suspension: Imports into the United States valued at $800 or less that previously qualified for duty‑free entry under 19 U.S.C. §1321(a)(2)(C) no longer get that treatment. Non‑postal shipments (courier/express/freight) must be entered in ACE by a qualified party and pay applicable duties, taxes, and fees.¹ ²
Postal bridge period: International postal shipments are temporarily handled without CBP preparing an entry, but carriers (or approved third parties) must collect and remit either (a) an ad‑valorem duty equal to the “effective IEEPA tariff rate” for the product’s country of origin, or (b) a flat “specific duty” of $80–$200 per item depending on that rate. After a 6‑month transition, only the ad‑valorem method remains.¹ ²
Effective time: 12:01 a.m. EDT on August 29, 2025.¹

Direction map — what “shipment” means here
• Inbound to the U.S. → This EO applies. Treat as a normal import with duties/entry (non‑postal).
• Outbound from the U.S. to EU/UK/MX/etc. → The EO does not apply; destination‑country VAT/duty rules (e.g., IOSS ≤ €150, UK ≤ £135) govern.
• Inventory imports into the U.S. for resale → Already formal entries; 8/29 doesn’t change that.
• Domestic U.S. shipping → No border crossing; not relevant.

Translation: “cheap parcel” is no longer a magic phrase. Treat low‑value parcels like real imports. If you want a seamless customer experience, you need to pre‑pay duties and file clean entries.

2) How this shows up in real life (three common scenarios)

A) US warehouse → EU/UK customer (a $50 widget)

EU (France), shipped from the US

Eligibility: Consignment ≤ €150 → use IOSS to collect VAT at checkout.³ ⁴
Rates: France standard VAT 20%.⁵
Math: $50 goods + $9 shipping → VAT applies to goods and seller-charged shipping; ~$11.80 VAT collected upfront; no customs duty under €150.³ ⁵
CX tip: Without IOSS, the carrier collects VAT + a handling fee on delivery.

UK, shipped from the US

Eligibility: ≤ £135 consignment value → seller must charge UK VAT at POS (register with HMRC). Intrinsic value excludes separately listed transport/insurance.¹⁰
Rates: UK standard VAT 20% (rate varies by product).
Math: $50 goods → ~$10 VAT at checkout (shipping may also be vatable when part of the supply).¹⁰ ¹¹
> £135: normal import process at the border (import VAT; duty possible).¹⁰

B) Importing into the US for resale (inventory, not DTC)

You’re a US company buying inventory from abroad and stocking a US warehouse, then selling to US customers.

Process: Always a formal consumption entry (ACE). De minimis never applied here in a meaningful way; it was a DTC parcel convenience, now suspended.¹ ²
Valuation: Duty is based on transaction value (price actually paid or payable) plus required additions like packing, assists, certain royalties; this excludes international freight/insurance if it is separately shown.¹²
Typical fees:
- Duty: HTS‑specific (varies by product).
- MPF: 0.3464% of entered value (min $32.71; max $634.62; increasing to $33.58/$651.50 on Oct 1, 2025).¹³ ¹⁴
- HMF (ocean only): 0.125% of cargo value.¹⁵
Example: 1,000 units × $50 = $50,000 entered value; assumed duty 4% → $2,000; MPF ≈ $173.20; HMF (ocean) ≈ $62.50. Total landed duties/fees ≈ $2,235.70 (≈ $2.24/unit).

COGS vs “packaged/ready to sell”: what matters?
Accounting language (COGS vs retail) doesn’t change duty. Customs cares about classification (HTS) and transaction value. “Ready to sell” triggers marking/label and safety rules (e.g., cosmetics labeling, COO marking), but not a different duty regime.¹² ¹⁶ ¹⁷

C) US company using EU/UK inventory to ship worldwide

Inventory is stored abroad; you sell into multiple destinations.

EU warehouse → EU consumers: Use OSS for distance sales; charge VAT of the customer’s Member State at checkout; file via OSS. IOSS does not apply because goods are already in the EU.³ ⁴
EU warehouse → US consumers: Export from EU (generally zero‑rated EU VAT with proof of export) and import to US. With de minimis suspended, file a normal entry or ship DDP with your express carrier to avoid doorstep duty collection.¹ ²
EU warehouse → UK consumers: Goods are outside the UK at POS. For ≤ £135, collect UK VAT at checkout; > £135, import VAT/duty at the border.¹⁰
UK warehouse → EU consumers: UK is non‑EU; for consignments ≤ €150, you can register IOSS to pre‑collect EU VAT (or ship DAP and let the carrier collect).³ ⁴

Operator translation: The thresholds (≤ €150 EU; ≤ £135 UK) determine how VAT is collected, not whether it’s owed. For US‑bound shipments from abroad, DDP + clean data is now table stakes post‑8/29.¹ ²

3) Operator’s 14‑day stabilization plan (one step removed from the dock)

Days 1–3 — Stabilize lanes

Flip priority SKUs to DDP with your broker/express carrier. Confirm Importer of Record (IOR) and entry path in writing.
Build a SKU Data Pack: plain‑English description, HTS, COO, materials/ingredients, value, and any PGA flags (e.g., FDA for cosmetics).

Days 4–7 — Paperwork & UX

Shore up your commercial invoices (use accurate and real descriptions + HTS + COO).
Update checkout to estimate/recover duties/fees; publish realistic delivery & returns language.
Create 2–3 bundles that improve landed‑cost math without gaming the thresholds. (want more info on this, contact us)

Days 8–14 — Pricing & positioning

Rebuild or implement price ladders using duty‑inclusive math per destination.
If volume justifies it, seed stock in a U.S. hub or set a cross‑dock to shorten entry times.
Re‑negotiate lanes and add index‑linked clauses where you have leverage.
Track a simple scorecard: % DDP on‑time, % clean docs, avg clearance time, duty variance vs. quote.

Ongoing — Broker/3PL coordination

Set Incoterms to DDP on U.S.‑bound parcels.
Ask for weekly exception reports (withholds/exams) and a monthly duty reconciliation (non‑postal).

4) Quick FAQ in plain language

Does this “ban” postal shipments? No. Postal is in a bridge: carriers collect either ad‑valorem or a flat $80/$160/$200 per item for up to 6 months, then switch to ad‑valorem only.¹ ²

Do I need a broker for every tiny parcel now? For non‑postal, yes—treat them like real entries. For postal, your carrier or a qualified third party handles remittance under the EO until CBP publishes a new entry process.¹ ²

What about returns? Your broker should map a returns flow (drawback or correction, depending on how you entered). The CX principle is unchanged: don’t make customers do customs math.

Is EU still “tax at the door”? Not if you use IOSS for ≤ €150. That’s the point—VAT is charged at checkout and remitted in a single monthly return.³

Mexico seems messy—what’s the simplest rule of thumb? Confirm origin first. US/Canada origin uses the USMCA value bands; non‑US/Canada courier shipments face the 33.5% global rate from Aug 15, 2025. Then price DDP to remove surprises.⁶ ⁷ ⁹

5) Micro‑glossary (no jargon left behind)

DDP (Delivered Duty Paid): You charge the customer a landed price and you (or your carrier/broker) pay duties/fees.
IOR (Importer of Record): The party legally responsible for making entry and paying duties.
ACE: CBP’s data system where entries are filed.
IOSS: EU’s Import One‑Stop Shop for collecting VAT at checkout on consignments ≤ €150.

6) Author’s note

I’ve spent years as a builder/operator—coordinating manufacturing, logistics partners, and customer‑facing promises. When policy moves, we don’t complain; we adjust the plan: clean data, DDP where it matters, and honest delivery promises. That’s the job.

Sources & Notes

White House. “Suspending Duty‑Free De Minimis Treatment for All Countries,” Executive Order, July 30, 2025. (Key sections: Sec. 2 non‑postal entry; Sec. 3 postal duty methods; effective 12:01 a.m. Aug 29, 2025.) https://www.whitehouse.gov/presidential-actions/2025/07/suspending-duty-free-de-minimis-treatment-for-all-countries/
U.S. Customs and Border Protection. “E‑Commerce Frequently Asked Questions,” updated Aug. 2025. https://www.cbp.gov/trade/basic-import-export/e-commerce/faqs
European Commission. “VAT One‑Stop Shop (IOSS).” https://vat-one-stop-shop.ec.europa.eu/index_en
European Commission – Taxation & Customs. “Customs formalities for low value consignments.” https://taxation-customs.ec.europa.eu/customs/customs-procedures-import-and-export/customs-operations/customs-formalities-low-value-consignments_en
PwC – Worldwide Tax Summaries. “France – Other Taxes” (France standard VAT rate 20%). https://taxsummaries.pwc.com/france/corporate/other-taxes
SAT (México). “Cuarta Resolución de Modificaciones a las Reglas Generales de Comercio Exterior para 2025,” DOF vespertina, July 28, 2025. https://www.sat.gob.mx/minisitio/NormatividadRMFyRGCE/documentos2025/rgce/rgce/4taRMRGCE_2025.pdf
Baker McKenzie. “Mexico: Increase to the rates of duty applicable upon importation through courier companies,” July 29, 2025. https://www.internationaltradecomplianceupdate.com/2025/07/29/mexico-increase-to-the-rates-of-duty-applicable-upon-importation-through-courier-companies/
Wise (MX) explainer. “Impuestos por recibir paquetes del extranjero,” Feb 3, 2025. https://wise.com/mx/blog/impuesto-recibir-paquetes-extranjero-mexico
Holland & Knight. “Reglas Generales de Comercio Exterior 2025 en México,” Jan 9, 2025. https://www.hklaw.com/en/insights/publications/2025/01/reglas-generales-de-comercio-exterior-para-2025-en-mexico
HMRC. “VAT and overseas goods sold directly to customers in the UK.” (≤£135: seller charges VAT at POS; intrinsic value excludes separately listed transport/insurance.) https://www.gov.uk/guidance/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk
HMRC (Notice 700/24). “VAT on postage, delivery and direct marketing.” (VAT treatment of delivery charges generally follows the goods.) https://www.gov.uk/guidance/vat-on-postage-delivery-and-direct-marketing-notice-70024
19 U.S.C. §1401a. U.S. customs valuation statute (transaction value; price actually paid or payable; additions/exclusions). https://www.law.cornell.edu/uscode/text/19/1401a
CBP Help Center. “Merchandise Processing Fees (MPF)” — 0.3464% ad valorem; min $32.71; max $634.62 (pre‑10/1/2025). https://www.help.cbp.gov/s/article/Article-1128
CBP CSMS #65741993. “Information on Customs User Fee Changes Effective Oct 1, 2025” (MPF min $33.58; max $651.50). https://content.govdelivery.com/accounts/USDHSCBP/bulletins/3eb24a9
Shapiro. “Harbor Maintenance Fee (HMF)” — 0.125% of cargo value on ocean imports. https://www.shapiro.com/resources/harbor-maintenance-fee-hmf/
19 CFR Part 134. Country of Origin Marking regulations. https://www.ecfr.gov/current/title-19/chapter-I/part-134
CBP Informed Compliance. “Marking of Country of Origin on U.S. Imports.” https://www.cbp.gov/trade/rulings/informed-compliance-publications/marking-country-origin-us-imports

Adam Xavier