If you’ve ever wondered how a $4 phone case gets shipped from China to your customer’s doorstep faster than you can restock packing tape—welcome to the magic of de minimis. It’s a fancy trade term for a simple rule: if a product is worth less than $800 and ships straight to a U.S. customer, it skips the import duties line. What the end of the de minimis rule means is that this duty-free fast pass might not be around much longer for shipments from China and Hong Kong.
But that skip-the-line pass? It’s getting revoked—at least for packages from China and Hong Kong starting May 2.
Wait, What’s De Minimis Again?
Quick refresher: the de minimis rule lets packages under $800 enter the U.S. tariff-free, no customs hassle. It’s one of the reasons fast-fashion giants, budget-friendly marketplaces, and direct-from-factory products have been so… affordable.
But a new rule is on the way. Here’s the update:
- Starting May 2, items from China and Hong Kong lose their de minimis exemption.
- That means each item will face a duty of 30% or $25, whichever is higher.
- And by June 1, that minimum jumps to $50 per item.
It’s not a punishment, just a policy shift with ripple effects.
How This Could Show Up in Your Workflow
If you don’t rely on direct-from-China shipments to customers, you might not feel a thing. But if your business—or your competitors’—leans on cross-border, low-cost shipping? This could shake things up.
Here’s what to keep an eye on:
- Cost structures may change for brands using Chinese fulfillment
- Shipping timelines could get longer with more customs steps
- Competitor pricing might inch upward as duties are baked into the bottom line
- U.S.-based inventory strategies might suddenly get more love
Basically, this could level the playing field a bit for domestic sellers while encouraging global brands to think more locally.
How Ordoro Can Help You Adapt
Even small shifts in import fees can ripple through your profit margins. That’s why it helps to have tools—and people—who know what’s up.
- We make it easy to add duty costs to purchase orders
- Track total landed costs with weighted averages
- See exactly what each product really costs—no surprises
Not sure how this fits into your current strategy? Talk to an Ordoro expert to explore what it could mean for your operations and how to stay ahead.