If you ship products to the United States, a significant rule change is coming that could affect your business and bottom line. On August 29, 2025, the U.S. will suspend the “de minimis” exemption for all low-value shipments, a move that will require all imports to be subject to duties and tariffs.
This is a change from the previous policy, which allowed goods valued at $800 or less to enter the U.S. without being charged customs duties. This exemption was a key feature for many small businesses and direct-to-consumer brands that relied on low-cost international shipping.
What to Expect: New Rules for Calculating Duties
With the de minimis exemption gone, you need to be prepared for new costs and procedures.
1. Commercial Shipments: All of your shipments that were previously duty-free will now be subject to a standard duty rate. This rate is based on the item’s Harmonized Tariff Schedule (HS) code. You should also be aware of other tariffs, such as the 10% baseline tariff and any country-specific reciprocal tariffs that may apply.
2. Postal Shipments: For packages sent via the international postal network, a special duty rate will be applied. This could be a flat fee of $80 to $200 per item or a duty rate tied to the product’s country of origin.
New Requirements for Shipping Documentation
To avoid delays at customs, the U.S. is now enforcing stricter documentation rules. You must ensure all customs forms are filled out accurately and completely.
1. Detailed Descriptions: Generic terms like “parts” or “clothing” are no longer sufficient. You must provide specific details, such as “stainless steel screws” or “cotton t-shirt.”
2. Country of Origin: All items must be clearly and legibly marked with their country of origin.
3. Accurate HS Code: Use the correct Harmonized System (HS) code for each item to ensure proper classification and duty assessment.
How Floship’s Platform and Expertise Will Simplify Your Operations
These changes are significant and will require you to adjust your shipping strategies, pricing, and communication with customers. Our core mission is to remove logistical headaches so you can focus on growing your brand.
Here’s how we’re helping you navigate these new changes:
1. Automated Duty & Tariff Calculations:
Our intelligent platform automatically calculates the duties for your commercial shipments based on each item’s Harmonized Tariff Schedule (HTS) code, along with any other country-specific tariffs. This ensures accuracy and predictability, eliminating manual calculations and unexpected costs.
2. Seamless Duty Collection & Remittance:
Floship’s system facilitates seamless duty collection. We work with you to implement the right Incoterms, such as Delivered Duty Paid (DDP), which allows you to collect duties from the customer at checkout, preventing any surprise fees or delivery delays on your customer’s end. Our process ensures these duties are properly remitted to U.S. Customs and Border Protection (CBP) on your behalf.
3. Ensuring Compliance and Documentation:
With new, stricter country of origin requirements, our platform helps you ensure every customs form is completed with specific, detailed item descriptions and a clear, legible country of origin marking—which is now more critical than ever to avoid costly customs holds and processing delays.
4. Global Network of Warehouses:
Our strategically located warehouses across 5 continents allow you to reduce transit times and shipping costs while also helping you to mitigate the impact of new tariffs.
Our Commitment to Your Growth
At Floship, we’re not just a logistics provider; we’re your partner in global expansion. We are proactively adapting our technology and processes to meet these new challenges head-on, ensuring your operations remain efficient and your customers stay delighted.
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