For decades, online merchants all over the world used the de minimis rule to make their U.S.-headed packages quick and cheap. As long as a package’s value was below $800, it could come into the United States duty-free and unencumbered by the troublesome hassle of customs searches. It was a small rule that had an enormous effect, driving cross-border ecommerce and giving small sellers a chance to compete internationally.
Those days are in the rearview mirror. Last August, the U.S. government finally shut down the de minimis exception on some imports, a policy shift that’s turning ecommerce companies’ approach to international shipping on its head. The new normal is causing confusion, delays, and surprise costs throughout the supply chain.
What’s Changing and Why It Matters
Under the new policy, nearly all incoming packages must now go through full customs clearance. This means every shipment requires detailed documentation on the product’s materials, country of origin, and applicable tariffs. For large importers, these processes are familiar. For small and medium enterprises, however, this is a steep learning curve.
Carriers such as UPS and DHL are already seeing significant disruptions. Numerous shipments are being held up at customs due to incomplete or missing data. If sellers fail to provide the necessary information in time, packages are being destroyed or sent back to the shipper at their expense. Products as varied as textiles, tea, glassware, and electronics have been caught in this bottleneck.
Bloomberg reports that the cost of these tariffs will not rest alone on sellers. U.S. consumers will pay about 55 percent of the added costs in higher prices, and exporters and sellers will cover the remaining portion. That is, the ripple effects will be experienced by the entire e-commerce system.
The Impact on Global Ecommerce
The largest challenge is not so much the additional paperwork, it’s interrupting speed and predictability. Small online sellers created their models on fast, low-cost deliveries that frequently skipped formal customs routines. With those perks taken away, cross-border commerce has unexpectedly become slower and more costly.
For companies shipping direct from factories or foreign warehouses, the shift can be particularly acruous. One misplaced field on a customs form can hold up an order for weeks. Scale that to hundreds of packages, and the business impact is considerable.
This transition can also alter the way retailers organize their logistics. Some will shift to local U.S. fulfillment centers to escape the recurring customs frustration. Others will consolidate shipments or increase product prices to cover new expenses. Whatever the choice, adaptability and vision will be essential to remain competitive.
What Sellers Can Do Right Now
Although this shift in policy may seem daunting, there are real solutions available to sellers that will help reduce disruption. The first is reviewing all customs paperwork for completeness. All shipments should identify the country of origin, description, and value of the product clearly. It is also advisable to work closely with carriers or customs brokers that will assist sellers with compliance.
Companies need to be extra cautious when dealing with products that contain steel, aluminum, or other materials that come under certain tariff categories. Small classification mistakes can cause delay or unforeseen duties. In the short term, it could mean delayed processes and additional expenses. In the long term, however, building a strong compliance process may become a competitive edge.
Looking Ahead
The death of the de minimis rule heralds a watershed for international ecommerce. It is symptomatic of a wider movement toward stronger trade controls and increasing emphasis on supply chain openness. For vendors, it serves as a reminder that international markets don’t stand still. Regulations change, and flexibility is as vital as marketing strategy or price policy.
Those that learn fast, adapt their systems, and maintain their paperwork tight will remain in front of the curve. Those who ignore the change risk losing not just shipments, but customer trust.
The message is simple: if you sell to the U.S., pay attention to what’s happening at customs. A small oversight today could mean a big loss tomorrow.
