How the Proposed US De Minimis Threshold Changes Could Impact You

In recent weeks, the US government has announced plans to change the $800 ‘de minimis’ limit. As it stands, imported goods worth less than $800 are exempt from taxes, which makes it easier for international eCommerce brands to sell to American consumers. 

The proposed legislation plans to reduce or eliminate the de minimis threshold entirely to crack down on drug smuggling and strengthen and protect the USA’s domestic trade and economy. At this stage, the extent of the changes is unclear. 

While it’s important to note that nothing has been set in stone yet, we wanted to inform you about these potential changes, how they might impact your business and customers, and what you can do about them. 

Who do these potential changes impact?

These proposed new laws will impact many non-US eCommerce businesses that currently export to America or plan to do so in the future.

Any changes to the de minimis threshold will apply to shipments under Sections 301, 232, and 201: Chinese goods, steel and aluminium products, and solar panels and washing machines, respectively. 

Many fashion, health and beauty, and consumer goods brands work with suppliers in China. If the legislation passes, it’s the brands that sell Chinese-made goods that will be most affected by:

1. Increased Export Costs: Lowering or removing the de minimis threshold will force eCommerce brands to pay more duties and taxes when shipping products to their customers in the US. 
2. More Admin: You’ll likely need to complete additional paperwork, such as customs declarations and other compliance documents. 
3. Tougher Competition: To cover increased costs on your side, you might need to raise your prices. Doing so might put you at a disadvantage, especially against US-based brands.  
4. Border Checks: Further checks at the border may result in a slower click-to-delivery for your customers. 

It’s important to remember that changes to import regulations affect not only you but also your customers. 

How to prepare for potential changes to the de minimis threshold 

The first thing we’d like to do is reiterate that there’s no need to worry at this stage. No laws have been passed yet, and it’s possible that any changes to the de minimis threshold could be minimal. 

Your priority at the moment should be to stay informed and up-to-date on any further announcements related to the de minimis threshold. We’ll keep you updated, but it’s essential to keep your eyes peeled, too. 

Additionally, if you currently export many goods to America or have plans to expand internationally, it would be a good idea to start thinking about the possibility of localised fulfilment. Having a US-based fulfilment partner at the ready if significant changes come into effect will help you to alleviate many of the issues associated with a lower de minimis threshold. 

At J&J Global Fulfilment, we have a network of fulfilment centres in the US, enabling domestic and international eCom brands to access the US market quickly, reliably, and affordably. 

If you’re interested in how our US facilities can help mitigate against any potential changes to the de minimis threshold, please contact us for a no-obligation conversation. 

We’re here to answer your questions

If you have any further questions or concerns about the proposed changes and how they might impact you, please don’t hesitate to contact us. Existing J&J clients can reach out to the Client Services Team.

About the Author

Simon Wheeler

As Chief Sales and Marketing Officer, Simon is responsible for articulating the value of our fulfilment services to eCommerce brands across the world, and generating new clients for the business.

White not finding innovative solutions for new and existing clients, Simon enjoys time away with his partner and two children.

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