US Ends Duty-Free Parcels 📦

TRADE UPDATE

US Ends Duty-Free Imports, Global Postal Services Suspend Shipments

The United States will officially end its long-standing “de minimis” duty-free exemption on August 29, 2025, removing the $800 threshold that allowed low-value imports to enter duty-free. The change will trigger new duties and customs requirements on every parcel, regardless of value, reshaping global e-commerce flows.

In preparation, postal services across the world have already announced temporary suspensions or restrictions on U.S.-bound shipments. Australia Post has paused parcel exports from August 26, with exceptions only for letters and limited gift categories. India, Japan, South Korea, and Singapore have confirmed similar suspensions, while New Zealand Post is halting parcels ahead of the change. In Europe, operators in the UK, EU member states, and Switzerland are preparing restrictions. In the Americas, Mexico and several Latin American carriers have paused services.

What happens next: The 6-month process

• August 29, 2025 – The duty-free exemption ends. All shipments require customs entry.

• Aug 29 – Feb 28, 2026 – A transition period applies, where parcels are subject to flat duty fees of $80–$200 per item, depending on origin. This allows postal operators time to adjust IT systems and customs processes.

• Sep – Dec 2025 – Postal services are expected to gradually resume suspended shipments, though delays and higher costs are inevitable. Express couriers (FedEx, UPS, DHL) may adapt faster, while national posts face longer backlogs.

• Mar 1, 2026 onward – Flat fees expire. Value-based tariffs take effect permanently under the U.S. Harmonized Tariff Schedule. Every shipment will require full HS code declarations and accurate valuations.

Businesses that relied on low-value duty-free shipping—particularly e-commerce retailers in fast fashion and consumer goods—must redesign supply chain strategies or shift stock to U.S. warehouses. Consumers, too, should brace for more expensive and delayed cross-border purchases.

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