Duties on Every Package? The End of Duty-Free Imports

The commercial $800 de minimis exemption remains suspended in October 2026, so even small overseas orders require appropriate customs processing and are subject to applicable duties and fees. We recommend budgeting for the full delivered price before checkout. Losing the exemption does not automatically mean your merchandise carries a positive duty rate: some products qualify for a zero rate under the applicable tariff rules.

The global de minimis suspension took effect on August 29, 2025, under Executive Order 14324. It ended duty-free treatment for eligible low-value shipments under Section 321 of the Tariff Act of 1930, specifically 19 U.S.C. 1321(a)(2)(C). June 2026 regulations established an indefinite suspension; Congress’s statutory repeal takes effect July 1, 2027. “Indefinite” means the regulations have no scheduled expiration, while statutory repeal is a separate legislative change.

The former US de minimis exemption covered qualifying imports valued at $800 or less per person, per day. That commercial duty-free threshold no longer protects your order, but separate exemptions remain for qualifying gifts and certain personal articles. Our advice on U.S. shipping costs affected by tariff changes starts with separating government charges from the carrier’s own fees.

What Will Your Package Cost, and How Do You Clear Customs?

Your package’s delivered cost includes the purchase price, transportation, applicable import duties, and any customs-processing or carrier charges. We recommend confirming who handles customs clearance and who pays those charges before the sender dispatches the parcel.

How Are Duties Calculated on Orders Worth $800 or Less?

Import duties depend on the product’s tariff classification, country of origin, customs value, and measures in effect when it enters the United States. The former $800 de minimis threshold no longer supplies a blanket exemption for commercial orders.

The Harmonized Tariff Schedule of the United States (HTSUS) supplies U.S. tariff classifications and rates. International HS codes identify goods at the six-digit level; U.S. HTS codes extend that classification to ten digits. Materials and intended use affect the correct HTS classification, so “accessories” or “parts” is insufficient detail.

Country-of-origin rules identify where merchandise originates. A Chinese-made item shipped from a warehouse in another country does not acquire that warehouse country’s origin merely through storage or repacking. Preferential tariff treatment requires the goods to meet the relevant agreement’s rules.

For a hypothetical $60 item with an applicable combined duty rate of 10%, the duty would be $6. Add $12 shipping and an assumed $8 carrier fee, and the delivered total becomes $86. Those figures illustrate the calculation; they are not a current tariff quote.

We treat a tariff calculator as an estimate until the product details and entry-date measures are verified. Sound international shipping preparation includes keeping separately stated freight charges distinct from the merchandise value.

Which Customs and Carrier Fees Can You Be Charged?

Government duties and carrier service fees are separate charges, even when they appear on the same invoice. We recommend asking for an itemized estimate because a zero-duty product still requires customs processing and could incur service charges.

Charge	Who imposes it?	What it covers
Import duty or additional tariff	U.S. government	Applicable tariff assessment
Merchandise processing fee	U.S. government	Entry processing, where applicable
Brokerage or clearance fee	Broker or carrier	Preparing and submitting an entry
Advancement or disbursement fee	Carrier	Advancing government charges
Storage or special handling	Carrier or facility	Services triggered by shipment circumstances

The merchandise processing fee follows the applicable entry rules. Formal and informal entries have different fee structures, and exemptions affect whether a government processing fee applies.

Carrier charges follow the service’s published terms. Ask whether standard clearance is included in transportation and whether advancing duty triggers a minimum fee. These billing distinctions are among the common customs issues in global shipping that deserve attention before dispatch.

Do Gifts and Personal Items Still Qualify for Exemptions?

Qualifying bona fide gifts retain a separate exemption, with a usual limit of $100 in aggregate fair retail value per recipient per day. A $200 limit applies to qualifying gifts sent from people in the U.S. Virgin Islands, Guam, or American Samoa.

A genuine gift is sent by a person abroad to someone in the United States without payment or other consideration. An online purchase remains a purchase when a seller checks the “gift” box. Certain merchandise, including alcohol and tobacco products, has additional restrictions or exclusions.

We recommend that anyone shipping gifts overseas describe each item and state its honest value, even when no money changed hands. For a U.S.-bound gift, the declaration should identify its gift status and recipient clearly. Gift wrapping alone establishes neither eligibility nor value.

Personal belongings also require the correct exemption. Certain personal or household articles accompanying travelers qualify under separate rules, and returning U.S. goods have their own requirements. A parcel labeled “personal use” does not automatically receive duty-free treatment; the sender should document the specific basis claimed.

Who Pays the Charges, and When Are They Collected?

Payment terms determine whether the seller handles import charges or the recipient receives a bill. We favor a written statement of responsibility before purchase, especially when the checkout price includes international shipping.

Under delivered duty paid (DDP) terms, the seller takes responsibility for import clearance and applicable import charges under the agreed arrangement. Confirm that the quoted price includes carrier clearance and advancement fees as well as government duties. Other arrangements assign import costs to the buyer.

The importer of record is responsible for the accuracy of the customs entry and its legal obligations. A carrier’s duty collection service does not transfer every importer responsibility to that carrier.

Depending on the shipment arrangement, payment occurs at checkout, before release, or through a later carrier invoice. For purchases from Shein, Temu, or AliExpress, check the specific order’s fulfillment location and payment terms. If someone requests an additional payment, we recommend confirming it through the carrier’s official tracking or billing system using the shipment number.

How Do Postal and Express Courier Shipments Differ?

Postal shipments move through the international postal network, while express couriers operate their own transportation and clearance systems. Both channels face customs requirements after the suspension, but their billing and entry workflows differ.

Feature	International Post / USPS	DHL, UPS, or FedEx
U.S. delivery channel	USPS	Courier network
Customs information	Postal declaration and required electronic data	Invoice and electronic shipment data
Charge collection	Postal operator or authorized collection arrangement	Courier billing or seller prepayment
Clearance support	Postal customs workflow	Carrier clearance service or broker arrangement

We recommend confirming acceptance with the originating postal operator before sending international mail shipments. Its merchandise service must support the required U.S. declaration and duty collection arrangements.

Historical postal flat-duty options were transitional measures. Likewise, old IEEPA tariff figures and temporary surcharges should not be carried into an October 2026 quote without checking their effective dates.

CBP’s electronic entry process for participating international postal shipments is part of a changing postal framework. Participation and filing requirements depend on the applicable program. For either channel, keeping a package from getting stuck in customs starts with complete data before dispatch.

What Paperwork Do Senders and Recipients Need?

Senders need a clear customs declaration and the supporting invoice or value documentation required for their shipping channel. Our recommendation is to make the documents specific enough that a customs officer understands the contents without opening the parcel.

For commercial low-value parcels, prepare:

• A precise description of each product, including relevant materials and use.
• Quantity, unit price, total value, and currency.
• Country of origin for each item.
• The appropriate HS or HTS classification required by the filing process.
• Complete sender and recipient names, addresses, and contact details.
• Shipping charges and agreed payment terms.
• Any product-specific permits or agency information.

For gifts, provide an accurate value and description even without a sales invoice. Used items also need a defensible declared value; entering zero because an item is old invites questions.

Recipients should retain the order confirmation and proof of payment. If an authorized filer needs importer identification, supply it through a secure, verified channel. We recommend matching the consignee information across documents because discrepancies complicate the documentation customs clearance requires.

When Is Informal or Formal Customs Entry Required?

Many eligible shipments valued at $2,500 or less qualify for informal entry procedures, although product-specific rules and CBP requirements control eligibility. The $2,500 amount is an entry-processing threshold, not a replacement duty-free allowance.

Entry Type 11 is an informal customs entry used for eligible shipments. Formal customs entry applies above the relevant threshold and in other required circumstances, including certain regulated goods. CBP also has authority to require formal entry for a shipment that would otherwise qualify for informal handling.

The suspended commercial Section 321 route and Entry Type 86 should not be treated as current shortcuts for ordinary sub-$800 purchases. Previous Section 321 entries operated under an exemption that no longer applies to those orders.

For applicable nonpostal entries, authorized filers transmit entry information through CBP’s Automated Commercial Environment (ACE). Postal shipments follow their designated procedures. We recommend asking the carrier which entry method it will use before arranging separate clearance.

A customs broker is useful for complex classifications or regulated merchandise. Every small parcel does not require the recipient to hire an independent broker; carrier-provided clearance and eligible self-filing arrangements serve different circumstances.

How Can Shoppers and Small Businesses Avoid Unexpected Costs?

The strongest protection is a written landed-cost estimate tied to the actual merchandise and shipping service. We recommend getting that estimate before checkout or dispatch, while there is still time to change the order.

For shoppers, the practical checks are:

• Confirm whether goods ship from inside or outside the United States.
• Ask whether duties and carrier fees are included.
• Keep the listing, invoice, and payment receipt.
• Review the seller’s terms for refused shipments and returns.

For small importers and cross-border e-commerce sellers, calculate landed costs by product. Store the verified classification and origin alongside each SKU, then update tariff assumptions when measures change. Splitting orders below $800 no longer restores the commercial exemption.

Compare fulfillment arrangements using total cost per order. Bulk imports into U.S. inventory still require import clearance and applicable duty, but domestic fulfillment changes the cost of subsequent customer deliveries. Consolidation also changes entry and transportation expenses.

Our international shipping services give you a place to discuss shipment arrangements before dispatch. Bring the item descriptions and values, then request an itemized quote identifying government charges, carrier fees, and any amounts payable by the recipient.