With Executive Order 14256 of 2 April, the U.S. government has introduced changes to its tariff regulations regarding low-value imports. On 28 April 2025 - U.S. Customs and Border Protection published a Notice of Implementation, which provides a higher level of clarity on how to import low-value consignments of products from the Peoples Republic of China (PRC) or Hong Kong from 2 May 2025 onwards.

Key Changes in Tariff Regulations

Elimination of the de minimis exemption:

Products from the PRC and Hong Kong valued at USD800 or less will no longer qualify for duty-free treatment under the de minimis exemption.

All such shipments must now be entered under appropriate customs entry types, and applicable duties must be paid.

New duty rates for postal shipments:

For international postal packages from the PRC or Hong Kong, carriers must choose between:

• An ad valorem duty of 120% of the package's value, or
• A specific duty of USD100 per package (increasing to USD200 per package starting 1 June 2025).

Carrier responsibilities:

Carriers must collect and remit the applicable duties to U.S. Customs and Border Protection (CBP) and maintain international carrier bonds to ensure compliance.

Carriers must apply the same duty collection methodology to all shipments they deliver, but may change their duty collection methodology once a month or in another periodic time frame as CBP determines is appropriate. They must also provide 24 hours’ notice to CBP.

Reporting requirements mandate carriers to provide detailed shipment data, including the number and value of packages.

Exemptions and Adjustments:

These duties replace other tariffs, including the ad valorem duty previously imposed on PRC products.

CBP may require formal entry for certain packages, subjecting them to standard duties and fees.

Implications

In contrast to the regulations in other jurisdictions (such as the EU, which generally only allows for a duty-free status to the low-value shipments with value of up to EUR150) the regulations in the U.S. were much more generous. Hence, the changes to the regulations would have a greater impact on the importers as well as on the carriers: e-commerce, logistics service providers, companies that have imported goods in small quantities, and customs representatives will have to adapt their pricing and operation models.

Operational Adjustments: Companies must adapt to new customs entry requirements and ensure compliance with duty collection and reporting obligations.

Increased Costs: The removal of the de minimis exemption and the imposition of high duties will significantly increase the cost of importing low-value goods from the PRC and Hong Kong.

Carrier Coordination: Fulfilment companies relying on international postal networks must work closely with carriers to manage duty payments and reporting. The fact that the customs calculation method must be selected globally for a period rather than per consignment should also pose a challenge in this regard.

Strategic Shifts: Businesses may need to explore alternative sourcing options or adjust pricing strategies to offset the increased costs.

Conclusion

These regulatory changes mark a substantial shift in the U.S. trade policy, with a direct impact on a large number of companies. To remain competitive, businesses must gain clarity regarding their customs and trade operations and adapt their operations where possible, while ensuring compliance with the new rules, and considering the diversification of their supply chains.