New De Minimis Rule: What Shippers Need to Know... And the Math Behind It

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De minimis trade loophole to end May 2

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Starting May 2, 2025, the U.S. will end Section 321 de minimis exemptions for postal shipments under $800 from China and Hong Kong. This marks a major shift in how small-value imports are treated — and will impact a huge number of e-commerce, electronics, and direct-to-consumer brands.

CLOSING LOOPHOLES IN THE TARIFF SYSTEM -  Source

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Here's what you need to know, and what the real cost impact could look like.

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1. What’s Changing?

Previously, importers could send shipments under $800 without paying duty under Section 321. But under the new rule:

All shipments under $800 from China/HK will now be dutiable.

Two new duty methods will apply:

• 30% Ad Valorem Duty
• Flat Fee Method (changing over time)

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2. Timeline of Implementation

May 2, 2025: Flat fee becomes $25 per shipment (or per item — see below).

June 1, 2025: Flat fee increases to $50 per shipment (or per item).

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3. Two Ways to Calculate Duty

-> Carrier-Centric View (Per Shipment):

Some guidance (including industry infographics) suggests the flat fee applies per shipment, allowing carriers to choose the cheaper option:

📌 Rule of thumb: -> On or after May 2: If value is > $83, the flat fee is cheaper || On or after June 1: If value is > $167, flat fee is cheaper

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>>> Best for low-quantity, high-value shipments.

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4. Let’s Do the Math: Real Cases

↳ Case 1: Import 1 item worth $200 from China

-> May 2 =

• 30% of $200 = $60
• $25 flat fee (per item or shipment)
• ✅ Duty: $60

-> June 1 =

• 30% = $60
• $50 flat fee
• ✅ Duty: $60

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↳ Case 2: Import 5 items worth $50 each (total $250)

-> May 2 =

• 30% of $250 = $75
• $25 flat fee x 5 = $125
• ✅ Duty: $125

-> June 1 =

• 30% of $250 = $75
• $50 flat fee x 5 = $250
• ✅ Duty: $250

💡 In this interpretation, multi-item shipments get expensive fast.

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5. So Which Is It — Per Shipment or Per Item?

That’s the tricky part.

There is ambiguity in current policy interpretations.

Carriers may treat it as a flat fee per shipment.

CBP enforcement and legal analysis may shift toward per item assessment.

To stay compliant and cost-aware, importers should consult their customs broker or legal counsel and verify each invoice— especially if you handle high-volume or multi-item orders from China.

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6. Takeaways for Shippers

This rule is not a small change — it will hit DTC brands, electronics, and e-commerce importers hardest.

Get clarity from your logistics partners: How are they calculating the fee? Will you be charged per shipment or per item?

Consider consolidating items to optimize cost under the new rule.

You can get help from BlueCargo:

-> Real-time regulatory tracking: We stay on top of every update and we will share with you what you need to know

-> Our system automatically audits shipments against freight contracts and ensures charges on your invoices are compliant and correctly applied — helping you avoid overpaying on duties and fees.

-> Whether you're shipping single-item electronics or multi-SKU bundles, BlueCargo ensures you're only paying what’s required — and nothing more.

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