De Minimis Cargo Clearance Goes The Way of The Dodo

Section 321 cargo clearance becomes a casualty of the latest trade policies

The End of an Era for Duty-Free Shipping for Businesses

On August 29, 2025, the USA officially eliminated the much‑used de minimis exemption under Section 321 of the Tariff Act. This policy had long allowed low‑value shipments (under $800 USD) to enter the USA without duty or complex customs scrutiny. But as of the end of August, that era is over.

Previously, the suspension of de minimis entry had been applied to shipments from China and Hong Kong early in 2025 over concerns about narcotics, counterfeit goods, and tariff evasion. Now, the policy has been extended to all countries, including Canada and Mexico.

What it Means for Cross-Border Shippers

Starting August 29, we’ll start seeing immediate cost increases on shipments under $800, since they will start facing duty fees. For items from Canada or other origins, goods are now subject to either a flat duty ($80–$200, depending on the tariff rate) or the standard ad valorem rate (a percentage-based tariff). Gone are the days of simplified imports. Now, every shipment is likely to require full classification, duties, customs brokerage, and accurate documentation.

The sweeping policy change caught many off guard. Postal services and carriers across Europe and Asia, including Royal Mail, La Poste, SingPost, and others, temporarily halted shipments to the USA due to confusion about new customs procedures and duty collection.

Alternatives & Adaptations

To manage duty liability and cash flow, many businesses are turning to foreign trade zones, or FTZs. These zones allow duty deferral until goods are released for sale in the USA, which can provide some financial flexibility and operational efficiency. Some logistics providers and sellers may even shift operations and inventory to USA-based fulfillment centers or otherwise try to adapt their supply chains to avoid immediate duty assessments.

Goods imported under the old system were often affordable items. With the end of de minimis, pricing is rising, and it’ll particularly hit low-income consumers who relied on discounted cross-border direct shipments. Alternatives may include either shipping locally or possibly ordering in bulk, for those who can afford it.

What This Means for Freightera  and Your Customers

This shift significantly raises landed costs and introduces new delays for cross-border freight. For businesses and consumers alike. Previously affordable parcels may suddenly seem much more expensive once duties and handling are added. Pricing transparency and the ability to quickly compare shipping options become more important than ever before.

In this new and, let’s call it, turbulent landscape, Freightera stands ready to step in and remove a lot of the newly added complexity for our customers. 

We’re here to help shippers more easily anticipate the full price of delivery from the start. As traditional postal and carrier services navigate regulatory confusion, with some even suspending shipments to the USA completely, Freightera is here to offer you stability and reliable shipping solutions.

Looking Ahead

Without the de minimis exemption, less-informed shippers can face costly surprises at the border. If you’ve made it this far into the article, you’re in the clear. However, tariffs remain an issue, so let Freightera simplify your cross-border freight with clear guidance and the ability to get the best possible online freight rates.

Still have questions? Ask us via chat, email, or phone at (800) 886 4870.