US Ends Duty-Free Treatment for Chinese Low-Value Packages
The US government officially ended duty-free de minimis treatment for low-value shipments originating from China and Hong Kong on May 3. This significant policy shift eliminates the long-standing exemption for packages valued under $800, subjecting all such shipments to tariffs of up to 145%. Specifically, postal shipments now face a 120% tax or a flat fee of $100, which is scheduled to increase to $200 in June. The move heavily impacts major cross-border e-commerce giants like Shein and Temu, as well as logistics providers including FedEx, UPS, and DHL, who must now ensure duties are paid before goods depart China. While the US Customs and Border Protection has suspended certain formal entry rules to ease immediate logistical pressure, the primary goal is to curb the influx of illicit goods, such as fentanyl precursors. With low-value shipments from China totaling $5.1 billion in 2024, industry analysts predict a drastic reduction in US-bound air cargo from China, potentially dropping by up to 75% this year due to the increased costs and regulatory burdens.
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US Ends Duty-Free Treatment for Chinese Low-Value Packages
The US government officially ended duty-free de minimis treatment for low-value shipments originating from China and Hong Kong on May 3. This significant policy shift eliminates the long-standing exemption for packages valued under $800, subjecting all such shipments to tariffs of up to 145%. Specifically, postal shipments now face a 120% tax or a flat fee of $100, which is scheduled to increase to $200 in June. The move heavily impacts major cross-border e-commerce giants like Shein and Temu, as well as logistics providers including FedEx, UPS, and DHL, who must now ensure duties are paid before goods depart China. While the US Customs and Border Protection has suspended certain formal entry rules to ease immediate logistical pressure, the primary goal is to curb the influx of illicit goods, such as fentanyl precursors. With low-value shipments from China totaling $5.1 billion in 2024, industry analysts predict a drastic reduction in US-bound air cargo from China, potentially dropping by up to 75% this year due to the increased costs and regulatory burdens.
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