De Minimis 2026: How the $800 Exemption Ended for China and What's Left
For nearly a decade, anyone could import goods worth up to $800 into the US duty-free under Section 321, the "de minimis" rule. That regime is over for Chinese goods — and the implications run from a $200 Shein order to a multibillion-dollar shift in the global e-commerce playbook. This guide explains exactly what changed, what still works, and what to expect through 2026.
What "de minimis" means
Section 321 of the Tariff Act of 1930, as amended by the Trade Facilitation and Trade Enforcement Act of 2015, allows a single shipment of goods valued at $800 or less to one person per day to enter the US duty-free and without formal entry. The rationale: the administrative cost of collecting duty on small shipments exceeded the duty itself.
From 2016 to 2024, this regime fueled the rise of cross-border e-commerce platforms — Shein, Temu, AliExpress — which optimized direct-to-consumer drop shipping at scale, paying zero duty per package.
The 2025 end of de minimis for China
| Date | Action |
|---|---|
| Feb 1, 2025 | EO signed: de minimis suspended for Chinese-origin goods under IEEPA |
| Feb 2025 | Brief operational pause; pause lifted as CBP scaled processing |
| May 2, 2025 | De minimis exemption formally eliminated for China and Hong Kong origin |
| Q3 2025 | Expansion proposed for additional jurisdictions (under review) |
| 2026 ongoing | De minimis remains in effect for most non-China origins, but with tightened enforcement |
What's still allowed under de minimis
- Most non-China origins — Vietnam, India, Mexico (if true origin), EU, Korea, Japan, etc. — still qualify if value ≤ $800.
- Bona fide gifts from foreign individuals to US individuals (up to $100 per recipient per day).
- Personal effects of US travelers returning from abroad ($800 per person).
- Diplomatic and government shipments.
What's no longer allowed for Chinese goods
- Direct-to-consumer parcels from China over any value owe duty.
- Section 321 streamlined entry for Chinese goods is closed.
- Even single low-value parcels now require entry data: HTS code, country of origin, importer of record.
- MPF minimum applies — the $32.71 minimum kicks in even on a $40 order.
The cost impact — concrete examples
| Order | Pre-2025 cost | Post-2025 cost |
|---|---|---|
| $40 Shein apparel order (China-origin) | $40 (duty-free under $800) | $40 + ~$56 (sum of duty layers + MPF min) = ~$96 |
| $80 Temu electronics order (China-origin) | $80 | ~$132 |
| $200 AliExpress order (mixed Chinese-origin) | $200 | ~$310 |
| $80 from a Vietnamese-origin Shein listing | $80 | $80 (still under $800 de minimis) |
| $200 from a US-warehouse Shein listing | $200 (no tariff) | $200 (duty already paid upstream by Shein) |
See our Shein, Temu & AliExpress Tariffs 2026 guide for the per-platform breakdown.
How platforms have adapted
- US-warehouse pre-stocking. Bestsellers ship from US warehouses with duty paid once upstream, amortized across many orders.
- Non-China sourcing. Shein expanded Vietnamese and Cambodian factory partnerships for the US market.
- Visible checkout tariff lines. Direct-to-consumer parcels now show duty at checkout, often as "import fees."
- Carrier collection on delivery. Some AliExpress orders bill the buyer via carrier (FedEx, UPS) days after delivery.
- Margin absorption. Chinese suppliers absorb part of the tariff to maintain price competitiveness.
What's coming in 2026-2027
- Possible expansion to other low-cost origins. USTR has signaled review of de minimis for additional country-of-origin scenarios.
- Tightened transshipment enforcement. CBP audits "Vietnamese-origin" parcels with Chinese manufacturing patterns.
- Carrier compliance requirements. Express carriers face stricter data submission rules for every package.
- Congressional debate. Multiple bills propose lowering or eliminating de minimis broadly, but no consensus yet.
- Court rulings. The IEEPA-based de minimis suspension faces pending challenges (the broader VOS Selections case affects this).
Strategic response for businesses
- Audit your supply chain for true country of origin. Claiming Vietnamese origin on Chinese-manufactured goods is illegal transshipment.
- Use US warehouses for high-volume SKUs. Pay duty once on a container, amortize across orders.
- Become an Importer of Record if you're moving above $50,000/year of cross-border parcels.
- Consider Foreign Trade Zones for high-volume distribution — see our FTZ guide.
- Run the actual landed math with our duty calculator before pricing.
Strategic response for consumers
- Look for "Ships from USA" filters on Shein, Temu, AliExpress to avoid surprise tariffs.
- Be aware that "free shipping" from China doesn't mean duty-free.
- Independent-seller AliExpress orders may surprise-bill on delivery — keep that in mind.
- Higher prices on US-warehouse items often reflect bundled tariff, not retailer markup.
Frequently asked questions
Is the $800 de minimis exemption still active in 2026?
Partially. The $800 Section 321 de minimis exemption was eliminated for goods of Chinese origin in May 2025. It remains in effect for most other countries, with narrower carve-outs.
Does de minimis still work for goods from Mexico or Vietnam?
Yes for most categories, but only for true country-of-origin goods. CBP audits transshipment claims aggressively. See our country of origin guide.
What's the duty I pay on a $50 Shein order now?
For a typical China-origin apparel item: 16% base + 7.5% Section 301 + 30% reciprocal + $32.71 MPF minimum ≈ $59 added to the $50 price.
Are there gift exemptions?
Yes. Bona fide gifts from foreign individuals to US individuals up to $100 per recipient per day remain duty-free.
Can a US business import small packages duty-free under another rule?
The remaining options: bonded warehouse / FTZ deferral, or formal entry with full duty paid. There's no commercial duty-free regime for Chinese goods now.
Will de minimis come back for China?
Pending litigation could affect the IEEPA basis. Congress could also act. As of mid-2026, no near-term restoration is expected.