How many packages are sent under the de minimis rule?
Approximately 4 million parcels enter the United States each day under the Section 321 “de minimis” duty-free rule—adding up to about 1.36 billion packages annually as of 2024 (CBP, 2025). The volume has jumped from 220 million in 2016 to over a billion today as online cross-border shopping surged, with Chinese e-commerce platforms like Shein and Temu accounting for roughly 600,000 daily shipments alone.
Numbers at a glance
- 1.36 billion de minimis packages entered the U.S. in fiscal year 2024
- 4+ million packages processed daily under Section 321 (2025 average)
- 92% of all cargo entries into the U.S. are de minimis shipments (2024)
- $61 billion estimated value of de minimis packages in 2024
- $800 current threshold for duty-free entry (since March 2016)
- 600,000 daily packages from Shein and Temu combined (2024)
- 60%+ of de minimis shipments originate from China (pre-May 2025)
The explosive growth in low-value shipments has transformed how Americans shop online while creating unprecedented challenges for U.S. Customs and Border Protection (CBP) enforcement efforts.
BREAKING: Global de minimis suspension On July 30, 2025, President Trump signed an executive order suspending de minimis treatment for ALL countries effective August 29, 2025.
This marks the end of duty-free entry for packages under $800, fundamentally transforming cross-border e-commerce.
Key changes:
- Non-postal shipments: Must file formal entries and pay all applicable duties
- Postal shipments: Subject to new duty rates of $80-$200 per package based on country tariff levels
- Permanent repeal: The One Big Beautiful Bill Act eliminates de minimis entirely on July 1, 2027
- Business impact: Companies have less than 30 days to restructure their import strategies
This global suspension follows the May 2, 2025 exclusion of China and Hong Kong, which had already reduced de minimis volumes by 30-35%.
De minimis 101
What Section 321 means
Section 321 of the Tariff Act of 1930 allows shipments valued at or below a certain threshold to enter the United States without paying duties, taxes, or formal entry requirements. Originally designed to avoid government expense disproportionate to revenue collection, the provision has evolved into a major trade facilitation tool for e-commerce.
$800 threshold evolution
The current $800 de minimis threshold took effect in March 2016 as part of the Trade Facilitation and Trade Enforcement Act of 2015. This represented a massive increase from the previous $200 limit that had been in place since the 1990s.
The threshold increase was designed to:
- Streamline import processing for small-value shipments
- Reduce administrative burden on CBP
- Align with international trade facilitation goals
- Support growing e-commerce and direct-to-consumer imports
Countries excluded in 2025
De minimis exclusions rolled out in phases throughout 2025:
Phase 1 - China & Hong Kong (May 2, 2025)
Starting May 2, 2025, the U.S. eliminated Section 321 de minimis exemption for goods from China and Hong Kong. Packages from these countries now face either:
- A 54% ad valorem duty on the item's value (reduced from initial 120%), or
- A specific duty of $100 per postal item
This exclusion directly targeted Chinese e-commerce platforms that had heavily exploited the de minimis provision, accounting for 60% of all de minimis shipments.
Phase 2 - Global Suspension (August 29, 2025)
Effective August 29, 2025, ALL countries lose de minimis privileges:
- Non-postal shipments must file formal ACE entries and pay full duties
- Postal shipments face tiered duty rates:
- Countries with <16% tariff rate: $80 per item
- Countries with 16-25% tariff rate: $160 per item
- Countries with >25% tariff rate: $200 per item
Phase 3 - Permanent Elimination (July 1, 2027)
The One Big Beautiful Bill Act permanently repeals the statutory de minimis provision, ending nearly a century of duty-free treatment for low-value imports.
- A 120% ad valorem duty on the item's value, or
- A specific duty of $11.48 per postal item (May 2-31, 2025)
This exclusion directly targets Chinese e-commerce platforms that have heavily exploited the de minimis provision.
Year-by-year growth timeline
The de minimis volume explosion tells the story of how a trade facilitation measure became a dominant import pathway.
De Minimis Package Growth (2016-2024)
The 2016 threshold increase from $200 to $800 triggered explosive growth, accelerated by COVID-19 and Chinese e-commerce platforms
Historical growth (2016-2024)
| Year | De Minimis Packages (Millions) | Growth Rate |
|---|---|---|
| 2016 | 220 | — (baseline) |
| 2017 | 280 | +27% |
| 2018 | 350 | +25% |
| 2019 | 420 | +20% |
| 2020 | 550 | +31% |
| 2021 | 720 | +31% |
| 2022 | 685 | -5% |
| 2023 | 950 | +39% |
| 2024 | 1,360 | +43% |
The 2016 threshold increase from $200 to $800 immediately triggered a surge in qualifying shipments. The COVID-19 pandemic accelerated growth as consumers shifted to online shopping, with Chinese platforms capitalizing on direct-to-consumer shipping models.
Key growth drivers
E-commerce expansion: The rise of platforms like Shein, Temu, and AliExpress made it easier for consumers to purchase low-value items directly from overseas manufacturers.
Supply chain optimization: Chinese sellers learned to split larger orders into multiple sub-$800 shipments to avoid duties.
Consumer behavior: Americans increasingly embraced ultra-low-cost goods shipped directly from Asia, often willing to wait 1-2 weeks for delivery.
Daily flow & mode breakdown
CBP processes over 4 million de minimis packages every operating day across multiple entry points and transportation modes.
Transportation modes
International mail: Handled primarily through USPS facilities, accounting for roughly 40% of de minimis volume. The JFK International Mail Facility alone processes 750,000-1 million parcels daily.
Express courier: FedEx, UPS, and DHL handle approximately 35% of de minimis shipments, offering faster but more expensive delivery options.
Air cargo: Direct air freight accounts for the remaining 25%, often consolidated into "master cartons" that can obscure individual package contents.
JFK case study
The John F. Kennedy International Mail Facility in New York processes about 25% of all U.S. de minimis shipments, making it the single busiest entry point. CBP reports that this facility alone handles:
- 750,000-1 million packages daily
- Peak volumes exceeding 1.2 million during holiday seasons
- Staffing challenges due to the sheer volume requiring inspection
Master carton challenges
Many de minimis shipments arrive in consolidated "master cartons" containing dozens or hundreds of individual packages. This consolidation method creates enforcement blind spots, as CBP cannot easily inspect every individual item within these bulk shipments.
National security and enforcement crisis
The administration frames de minimis suspension as a national security imperative, citing overwhelming enforcement challenges:
Seizure statistics (FY2024)
- 90% of all cargo enforcement actions involved de minimis shipments
- 98% of narcotics seizures by case count
- 97% of counterfeit goods (31 million items)
- 77% of dangerous items (20 million weapons parts, Glock switches, etc.)
CBP processes over 4 million packages daily with minimal inspection capacity. The House Select Committee found platforms like Temu conduct zero UFLPA audits, making forced labor enforcement impossible.
"President Trump is putting an end to the proliferation of shippers worldwide that deceptively exploit the de minimis privilege," states the July 30 executive order, linking the suspension to declared national emergencies on fentanyl trafficking.
Who sends the most?
Chinese e-commerce platforms dominate de minimis shipment volumes, with two companies accounting for an outsized share of daily traffic.
Daily Package Volume: Major Platforms
Shein & Temu dominance
According to the House Select Committee on the Chinese Communist Party, Shein and Temu together ship approximately 600,000 packages daily to the United States under the de minimis provision. This represents more than 30% of all daily de minimis shipments.
Shein: The fast-fashion giant ships an estimated 300,000-350,000 packages daily, primarily clothing and accessories with individual values typically between $5-50.
Temu: PDD Holdings' marketplace platform ships roughly 250,000-300,000 packages daily, covering electronics, home goods, and consumer products.
Share of shipments from China
Before the May 2025 exclusion, approximately 60% of all de minimis shipments originated from China. This concentration raised concerns about:
- Trade enforcement challenges
- Potential circumvention of anti-dumping duties
- Forced labor compliance issues
- Product safety oversight
Other top origin countries
While China dominated pre-2025, other significant sources include:
- South Korea: Electronics and beauty products
- India: Textiles and pharmaceuticals
- Vietnam: Apparel and footwear
- Thailand: Consumer goods and accessories
- Mexico: Various manufactured goods
Timeline: De Minimis Policy Changes (2025-2027)
The golden age of cross-border e-commerce has ended. Companies must now navigate a complex landscape of duties, formal entries, and increased compliance costs.
Implementation challenges
The February false start revealed CBP's system limitations:
- USPS temporarily stopped accepting Chinese packages
- Customs systems crashed from formal entry surge
- Businesses scrambled without transition period
- Secretary of Commerce needed 3 months to certify "adequate systems"
Early impact data (May-July 2025)
- 30-35% immediate volume reduction post-China exclusion
- Transshipment through Vietnam and Mexico increased 40%
- Shein/Temu opened Mexican warehouses to maintain access
- Average delivery times increased from 7-10 days to 14-21 days
Business adaptations
Companies are rapidly restructuring operations:
- Consolidating shipments above $800 to justify formal entry costs
- Establishing foreign warehouses in Canada and Mexico
- Partnering with 3PLs for customs brokerage services
- Shifting to domestic suppliers despite higher costs
Volume projections (revised August 2025)
- Pre-August 29: 800-900 million annual packages
- Post-August 29: 200-300 million (75% reduction)
- Post-July 2027: 100-150 million (formal commercial entries only)
The golden age of cross-border e-commerce has ended. Companies must now navigate a complex landscape of duties, formal entries, and increased compliance costs.
Policy shift rationale
The administration justifies ending de minimis through three core arguments:
- National security: 90% of drug seizures involve de minimis packages
- Economic protection: $3-4 billion in lost annual revenue
- Fair trade: China's de minimis threshold is effectively $7, creating asymmetry
"While the U.S. previously offered a generous de minimis exemption, China enforces strict import restrictions," notes the April 2025 White House fact sheet, highlighting the reciprocity argument driving policy.
Frequently asked questions
How is a de minimis shipment defined?
A de minimis shipment is any package valued at $800 or less that enters the U.S. without requiring formal customs entry, duty payments, or extensive documentation. The value is based on the retail price of the goods, not shipping costs.
Has the $800 limit ever been adjusted for inflation?
No. The $800 threshold has remained unchanged since March 2016. If adjusted for inflation, the equivalent value in 2025 would be approximately $950-1,000.
How many de minimis packages are seized for violations?
CBP doesn't publish specific seizure rates for de minimis shipments, but agency officials estimate that less than 1% of packages receive physical inspection due to volume constraints. Seizures typically focus on high-risk categories like pharmaceuticals, electronics, and luxury goods.
Which carriers handle the most de minimis parcels?
USPS processes the largest volume through international mail facilities, followed by express carriers (FedEx, UPS, DHL) and direct air cargo operators. The exact breakdown varies by origin country and shipping method.
What data does CBP receive on each package?
For de minimis shipments, CBP receives basic information including sender/recipient details, declared value, and general product description. This limited data makes risk assessment challenging compared to formal entries with detailed commercial invoices.
Are duties collected at all on these shipments?
No duties or taxes are collected on qualifying de minimis shipments. However, packages may still be subject to other fees like postal handling charges or carrier brokerage fees.
How does the U.S. threshold compare globally?
The U.S. $800 threshold is among the world's highest. Comparisons include:
- European Union: €22 ($24)
- Canada: CAD $20 ($15)
- Australia: AUD $1,000 ($650)
- United Kingdom: £135 ($170)
What's the timeline for de minimis changes?
The major changes are already in motion:
- August 29, 2025: Global suspension takes effect (all countries)
- July 1, 2027: Complete statutory repeal
No further changes are expected—the policy direction is clear and irreversible. Businesses should plan for a permanent post-de minimis environment.
How should businesses prepare for August 29?
Companies using de minimis from non-China countries should immediately:
- Obtain customs bonds and broker relationships
- Consolidate orders above $800 when possible
- Calculate true landed costs including duties
- Explore Section 321 Type 86 entries as an alternative
- Consider domestic sourcing despite higher costs
What are the new postal duty rates?
Starting August 29, postal shipments face country-specific duties:
- Low-tariff countries (<16%): $80 per package
- Medium-tariff countries (16-25%): $160 per package
- High-tariff countries (>25%): $200 per package
Carriers can alternatively pay the actual percentage duty on declared value.
Is there any way to maintain duty-free treatment?
No. After August 29, 2025, no legitimate duty-free pathway exists for commercial imports under $800. The only exceptions are:
- Personal effects of returning residents
- Gifts under $100 (with restrictions)
- Certain samples and promotional materials
The era of duty-free e-commerce imports has definitively ended.
Sources
- U.S. Customs and Border Protection — 2024-2025 de minimis volume statistics and policy announcements
- House Select Committee on the Chinese Communist Party — Interim findings on Shein and Temu shipment volumes
- Congressional Research Service — Historical analysis of Section 321 and threshold changes
- American Action Forum — Economic impact analysis of de minimis provisions
- International Trade Insights — 2025 China exclusion implementation details
