U.S. Ends De Minimis Exemption: What Brokers & Forwarders Need to Know Before August 29, 2025

August 25, 2025
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On August 29, 2025, the United States will suspend the de minimis exemption for all commercial shipments, regardless of value. This means every shipment, no matter how small, will require a formal entry and be subject to applicable duties and tariffs.

For brokers and forwarders, this is a significant operational shift that will reshape clearance procedures, client cost structures, and daily workflows.

Key Changes

No $800 threshold – All commercial imports into the U.S. will require full customs clearance.

Applies to all countries – Canada, Mexico, China, Hong Kong, and all other origins are included.

Postal exception is temporary – Shipments through the international postal network will follow a separate duty process for six months before aligning with standard ad valorem rates.

No Section 321 relief – Common low-value clearance programs will no longer apply.

Why This Matters for You

Increased Entry Volumes – Expect a sharp rise in formal entry filings for shipments that previously cleared under de minimis.

Client Cost Increases – Duties, tariffs, brokerage fees, and clearance charges will now apply to many low-value shipments.

More Compliance Pressure – With heightened enforcement, errors in valuation, classification, or origin declaration could lead to delays, penalties, or seizure.

Operational Bottlenecks – Clearance timelines may lengthen, particularly for high-volume e-commerce and direct-to-consumer channels.

The U.S. government has tied this move to curbing illicit trade, counterfeit goods, and fentanyl smuggling. In FY 2024, de minimis shipments accounted for 90% of all cargo seizures and 97% of counterfeit seizures.

How Portway Can Help You Manage the Impact

As your Business Process Outsourcing (BPO) partner, Portway International is uniquely positioned to help you absorb this change without disrupting your client service.
We can:
Scale Your Entry Processing – Handle the influx of formal entries so your in-house team can focus on priority accounts.

Perform Landed Cost Modeling – Help you provide accurate duty and tariff estimates to your customers in advance.

Streamline Documentation – Ensure HS codes, valuations, and supporting docs are accurate and compliant.

Support Client Communication – Provide ready-to-use materials you can share with your customers explaining the changes.

Offer Overflow & After-Hours Coverage – Keep shipments moving even during peak volumes.

The Bottom Line

The end of de minimis will require a fast and coordinated response from brokers and forwarders. Now is the time to assess risk, prepare systems, and educate your customers.

Portway International is your partner in navigating these changes. We’re ready to help you adjust, no matter how the regulatory landscape evolves.

📩 Contact our team today to start your transition plan ahead of the August 29 deadline. 🔗https://hubs.ly/Q02XPNcz0

Sources:

https://www.whitecase.com/insight-alert/united-states-suspend-customs-de-minimis-entry-most-shipments-august-29-2025

https://www.bdo.ca/insights/u-s-to-suspend-de-minimis-exemption-for-commercial-shipments-effective-august-29-2025

https://www.wsj.com/articles/end-of-de-minimis-alarms-e-commerce-sellers-consumers-36f3c26f

https://www.dhs.gov/news/2025/07/31/president-trump-ends-unfair-de-minimis-tariff-exemption-major-victory-securing

 

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