As of May 2, 2025, the United States has officially ended the de minimis exemption for low-value imports from China and Hong Kong. Previously, this exemption allowed shipments valued at $800 or less to enter the United States duty-free. The change significantly impacts consumers and businesses relying on inexpensive imports from these regions.

New Tariffs on International Postal Packages

Under the new policy, all shipments from China and Hong Kong, regardless of value, are subject to duties. Initially, an ad valorem duty of 120% of the commercial value of the goods or a flat fee of $100 per package was imposed. However, effective May 14, 2025, shipments of covered products valued at or under $800 through international mail will be subject to the reduced ad valorem duty rate of 54%, or the alternative $100 flat fee per package. These measures aim to address concerns over unfair trade practices and the influx of low-value goods. Importers have the option to ship their goods as standard commercial freight and file a Consumption - Formal or Informal entry where the "general tariff rules" would be applicable. This will heavily impact ecommerce companies that had been leveraging the de minimis exemption, forcing them to increase prices or rethink their business model altogether.

In many cases, the tariffs and fees will cost more than the value of the goods, making shipping individual parcels cost prohibitive. Instead of shipping individual parcels under de minimis, companies may look to bundle parcels into a single entry, which can have up to 999 individual items or lines. Informal entries are capped at a $2,500 total entered value where formal entries apply for shipments above $2,500. However, if one item needs to be inspected, the goods could be held up for weeks with Customs—meaning the end consumer could have to wait 3-4 weeks for an item instead of 7-10 days.

The quick moving policy changes have resulted in distinct rates for each policy period.

Special Provisions for Postal Shipments

Under the Trump Administration's executive orders concerning the elimination of the de minimis exemption for low-value imports from China and Hong Kong, specific provisions were established for postal shipments. These provisions come into effect when spanning the entire shipment journey.

• Postal Shipments via International Postal Network: Packages valued at or under $800 sent through the international postal network (e.g., China Post to USPS) effective 12:01am ET on May 14 are now subject to an ad valorem duty rate of 54% or a flat specific duty rate of $100.
• Carrier Responsibilities: Carriers handling these postal items are required to report shipment details to U.S. Customs and Border Protection (CBP), maintain an international carrier bond to ensure duty payment, and remit duties to CBP by the 7th business day of the following month.
• Formal Entry Requirements: CBP retained authority to require formal entry for any postal package, regardless of its value, instead of applying the specified duties.
• Small Parcel: Importers have the option to continue shipping via small parcel (DHL, FedEx, UPS) where “general tariff rules” would apply.

These measures were said to address concerns over the usage of the de minimis exemption, particularly in relation to the influx of low-value packages from Chinese ecommerce platforms as well as the potential for illicit goods entering the United States under the guise of low-value shipments. However, in reality, large ecommerce companies rarely use the national postal networks for the full shipping journey.

Large ecommerce companies typically use air or ocean freight, then leverage the U.S. Postal Service or other last mile carriers for final mile delivery. The postal fee provisions only impact end-to-end shipping, not final mile delivery. Usually, consumers sending goods from China to their family in the United States use international postal services like the China Post or United States Postal Service (USPS) end-to-end.

With de minimis benefits removed for Chinese goods, consumers receiving packages through regular mail will have to pay the duties. There may be an opportunity to pre-pay duties online, but in many cases it is likely the recipient will need to visit a local post office, pay the required duties, and collect their shipment in person.

Changes in Consumer Delivery Procedures

For packages sent via the international postal network from China or Hong Kong, such as those from China Post to USPS, the collection of duties is now required either pre-paid or upon pickup or delivery. The USPS, in coordination with Customs and Border Protection (CBP), is implementing systems to efficiently collect these duties prior to or upon delivery. This may involve recipients paying the assessed duties and a postal handling fee at the time of delivery or pickup.

While this postal shipment policy is limited to parcels from China and Hong Kong for now, we anticipate that with the end of the de minimis exemption globally as stated by the Trump administration, this type of policy may apply to all international packages in the near future. This could drastically lower the impact and use of this method of importation due to the burden and cost on individuals who will need to physically retrieve international parcels and pay the associated duties at the post office. Such a shift would align with how international parcels were received in the United States in the 1990s and how many other countries treat international parcels.

The Administration has not explicitly stated its plan, but the postal shipment policy applied to China indicates we may return to the old way of doing things. Either way, your care package from your family in China just got more expensive.