Complete Guide to De Minimis Changes in 2025: What US Importers Need to Know

What Is De Minimis and Why Does It Matter?

De minimis refers to the value threshold below which imported goods can enter a country duty-free and with minimal customs formalities. In the United States, this threshold has historically been set at $800 per shipment under Section 321 of the Tariff Act of 1930.

For years, shipments valued under $800 enjoyed streamlined customs clearance through the Type 86 entry process, requiring minimal documentation and no formal entry filing. This made cross-border eCommerce economically viable for millions of small-value shipments entering the US daily.

Major Changes to Section 321 De Minimis in 2025

1. Enhanced Data Requirements

Starting in 2025, CBP (US Customs and Border Protection) has implemented significantly more stringent data requirements for Section 321 shipments. Previously optional information is now mandatory:

• 10-digit HTS code (Harmonized Tariff Schedule) for all items
• Complete product descriptions with material composition
• Country of origin for each item (not just country of export)
• Manufacturer information including name and address
• Seller information for marketplace shipments
• Buyer information with full contact details

These requirements bring Section 321 entries closer to formal entry standards, eliminating much of the administrative advantage that previously existed.

2. Product Category Restrictions

Certain product categories are now excluded from Section 321 de minimis treatment entirely, regardless of value:

• Products subject to Section 301 tariffs (primarily goods from China)
• Textiles and apparel requiring Section 204 documentation
• Products under anti-dumping or countervailing duty orders
• Certain agricultural products requiring USDA clearance
• Items requiring FDA, EPA, or other agency approvals

For these categories, formal customs entry is required even if the shipment value is under $800, fundamentally changing the economics of importing these goods in small quantities.

3. Increased Scrutiny and Enforcement

CBP has significantly increased enforcement actions related to Section 321 shipments, including:

• Random audits of high-volume importers and 3PLs
• Value verification programs targeting undervaluation
• Enhanced targeting of suspected IPR (intellectual property rights) violations
• Penalties for misclassification, even for low-value shipments

New Compliance Requirements for Different Stakeholders

For eCommerce 3PLs and Parcel Consolidators

Third-party logistics providers handling high volumes of cross-border shipments face the most significant operational impact:

• Data collection systems must capture all required fields before shipment
• HTS classification expertise is now essential for accurate filings
• Quality assurance processes to verify data accuracy at scale
• Exception handling workflows for restricted categories
• Importer of record management for clients without US entities

For Mid-Market Customs Brokers

Customs brokers must adapt their service offerings to accommodate the new requirements:

• Type 86 entry preparation now requires nearly as much work as formal entries
• Client education programs to explain new requirements and compliance risks
• Fee structures may need adjustment to reflect increased workload
• Technology investments to handle increased data processing requirements

For Direct Importers

Companies importing goods directly must ensure:

• Supplier communication to obtain all required product data upfront
• Internal processes for HTS classification and documentation
• Understanding of which products qualify for Section 321 treatment
• Alternative strategies for excluded categories (consolidation, formal entries)

Step-by-Step Compliance Guide

Step 1: Assess Your Current Operations

Begin by conducting a comprehensive audit:

• What percentage of your imports are under $800?
• Which product categories do you handle?
• What data do you currently capture at shipment booking?
• Do you have HTS classification capabilities in-house?
• What is your current error rate for customs documentation?

Step 2: Identify Gaps

Compare your current processes against the new requirements:

• Data gaps: Which mandatory fields are you not currently capturing?
• System gaps: Can your current systems accommodate the additional data?
• Knowledge gaps: Does your team understand HTS classification?
• Process gaps: Do you have quality assurance procedures?

Step 3: Implement Solutions

Address identified gaps systematically:

• Update intake forms to capture all required data elements
• Implement classification tools or partner with a customs broker
• Train staff on new requirements and compliance procedures
• Establish QA checkpoints before submission to CBP
• Create escalation procedures for edge cases and exceptions

Step 4: Monitor and Optimize

Ongoing compliance requires continuous improvement:

• Track key metrics: submission error rates, clearance times, exam rates
• Review rejections: analyze why shipments are held or refused
• Update procedures: refine processes based on operational data
• Stay informed: monitor CBP guidance updates and enforcement trends

Common Mistakes to Avoid

1. Undervaluing Shipments

Declaring shipments at less than their true value to stay under the $800 threshold is illegal and heavily penalized. CBP uses sophisticated data analytics to identify patterns of undervaluation. Penalties can include:

• Civil fines up to $10,000 per violation
• Loss of Section 321 privileges for repeat offenders
• Criminal prosecution in egregious cases
• Reputational damage and client loss

2. Incorrect HTS Classification

Using generic or incorrect HTS codes is one of the most common errors. Classification matters because:

• Some HTS codes are excluded from Section 321 treatment
• Incorrect codes trigger examinations and delays
• Repeated errors indicate lack of reasonable care
• Duty and fee calculations depend on correct classification

3. Incomplete Country of Origin Data

Simply listing the country from which goods are shipped is insufficient. CBP requires the actual country of manufacture, which may be different. This is particularly important for:

• Products subject to trade agreements
• Goods potentially subject to Section 301 tariffs
• Items with complex supply chains

4. Splitting Shipments to Avoid Threshold

Artificially dividing a single order into multiple sub-$800 shipments to avoid formal entry requirements is considered fraud. CBP's systems track consignee patterns and will identify this practice.

Technology Solutions for Compliance

Automated HTS Classification Tools

Modern classification software uses AI and machine learning to suggest appropriate HTS codes based on product descriptions. Key features include:

• Database of 18,000+ HTS codes with descriptions
• Natural language processing for product matching
• Confidence scoring for classifications
• Integration with eCommerce platforms and WMS systems

Customs Broker Partnership Platforms

For businesses without in-house expertise, partnering with a licensed customs broker through integrated platforms offers:

• Expert classification review for complex products
• Compliance monitoring and audit support
• Regulatory update notifications
• Scalable processing for high volumes

Cost Implications and ROI Analysis

Increased Per-Shipment Costs

The new requirements increase costs in several ways:

• Labor costs: More time required per shipment for data collection and verification
• Technology costs: Investment in classification tools and system upgrades
• Broker fees: Professional services for classification and compliance
• Delay costs: Held shipments increase inventory carrying costs

Industry estimates suggest per-shipment costs have increased 40-60% for businesses previously using minimal Section 321 documentation.

Hidden Costs of Non-Compliance

Attempting to maintain old processes without adaptation carries significant risks:

• Examination rates: Non-compliant shipments are examined at 10-15x higher rates
• Penalties: Average penalty per violation is $5,000-$10,000
• Clearance delays: Each day of delay costs an estimated $50-$200 per shipment
• Customer satisfaction: Delayed or refused shipments damage client relationships

Alternative Import Strategies

Consolidation and Formal Entry

For excluded product categories or high-volume operations, consolidation into formal entries may be more cost-effective:

• Combine multiple orders into single formal entry
• Economies of scale for broker fees and compliance costs
• Better predictability for clearance timelines
• Easier inventory management

Domestic Fulfillment Centers

Some businesses are shifting to bulk import and domestic fulfillment:

• Import goods in commercial quantities via formal entry
• Store in US fulfillment centers
• Fulfill orders domestically to avoid customs issues
• Better control over customer delivery experience

Nearshoring

Moving production to Mexico or Canada can leverage USMCA trade agreement benefits:

• Preferential duty treatment for qualifying goods
• Faster transit times and more predictable delivery
• Reduced regulatory complexity
• Better oversight of manufacturing quality

Working With a Customs Broker

When to Engage a Broker

Consider professional customs brokerage services if you:

• Process more than 100 shipments per month
• Handle complex or regulated products
• Lack in-house classification expertise
• Have experienced compliance issues or penalties
• Want to minimize risk and focus on core business

What to Look For in a Broker

Select a customs broker based on:

• Licensing: Valid CBP broker license (verify at CBP.gov)
• Experience: Track record with your product categories and volume levels
• Technology: Modern systems for data exchange and reporting
• Service model: Scalable processes for your growth trajectory
• Pricing: Transparent fee structure aligned with services provided

Future Outlook and Regulatory Trends

Potential Further Restrictions

Policy discussions are ongoing regarding additional Section 321 restrictions:

• Per-person limits: Proposals to cap daily de minimis shipments per recipient
• Categorical exclusions: Expanding the list of ineligible product types
• Threshold reduction: Some proposals suggest lowering the $800 limit
• Platform liability: Increased responsibility for marketplaces and carriers

Enforcement Priorities

CBP has indicated focus areas for 2025-2026:

• Fentanyl and precursor chemical smuggling
• Counterfeit goods and IPR enforcement
• Forced labor compliance (UFLPA)
• Revenue collection and trade remedy enforcement

Conclusion and Action Steps

The 2025 de minimis regulatory changes represent a fundamental shift in how low-value imports are processed. The era of minimal documentation and streamlined processing is ending, replaced by requirements that approach formal entry standards.

Immediate action steps:

1. Audit current processes against new requirements within the next 30 days
2. Identify compliance gaps in data collection, classification, and documentation
3. Evaluate technology solutions for automated classification and compliance
4. Consider broker partnership if internal resources are insufficient
5. Train staff on new requirements and compliance procedures
6. Implement QA processes before the next shipment cycle