Now that the $800 de minimis exemption is gone, do I pay duty on every small parcel from China?

The Duty-Free Era Is Over

For a decade, the $800 US de minimis (Section 321) and the EU's €150 threshold let billions of low-value parcels clear customs duty-free with almost no paperwork. That model ended in 2025-2026. In the US, the change took effect for China/Hong Kong first (2 May 2025), then globally (29 August 2025); Congress repealed Section 321 for commercial shipments effective 1 July 2027 via the One Big Beautiful Bill Act. In the EU, the €150 exemption was replaced on 1 July 2026 by a transitional €3 flat duty per item (by 4-digit HS code), with a five-tier schedule (0/5/8/12/17%) due from 1 July 2028 once the EU Customs Data Hub is live. The UK retains VAT relief under £135 while consulting on removal around 2029.

What It Costs a China Seller

Cross-border logistics analysts estimate landed-cost increases of 15-40% for China-origin DTC parcels once full duties apply. Because Chinese goods also carry Section 301 additional duties (7.5-25%) on top of the base Most-Favoured-Nation rate, many small parcels that were 'free' now attract a meaningful tariff stack. The direct-from-China DTC model is no longer economically viable at scale, which is why consolidation into fewer commercial imports and local/bonded fulfillment have shifted from 'optional' to 'essential infrastructure' for 2026.

A Real-World Case

A 12-SKU home-accessories brand we advise shipped roughly 4,000 parcels a month, average declared value $26, straight from Yiwu to US and EU consumers. After 2 May 2025 every US parcel needed a formal entry and paid base + Section 301 duty; after 1 July 2026 EU parcels added the €3/item charge plus 19-21% VAT. Margins collapsed. Working with RND SOURCING, they moved to consolidated air freight into a German bonded warehouse, cleared goods as commercial entries in bulk, and fulfilled locally. Per-parcel clearance fees dropped by roughly 70% and delivery times shortened — the duty bill did not disappear, but the structure became manageable.

The Data at a Glance

The volumes that drove the policy change show why enforcement is now structural, not a passing tweak.

Why RND SOURCING Recommends a Fulfillment Restructure

At RND SOURCING we stopped treating de minimis as a pricing line and started treating it as a supply-chain design problem. For most importers the fix is not 'pay the duty' but 'change the architecture': consolidate, pre-position stock in a bonded zone or local warehouse, and clear commercially. That converts thousands of fragile parcel entries into a handful of predictable ones — lower per-unit clearance cost and far less exposure to CBP's post-de-minimis enforcement.

Step-by-Step: Restructure Your China Fulfillment

1. Run a classification audit on your top SKUs and model the new duty stack per lane.
2. Consolidate small parcels into weekly air or sea consolidations instead of per-order邮寄.
3. Pre-position inventory in a bonded warehouse or EU/US 3PL so you clear in bulk.
4. Use DDP or DAP deliberately and show landed cost at checkout to avoid cart abandonment.
5. Brief customers early — surprise duties at the door are the fastest way to lose repeat buyers.

Common Mistakes to Avoid

• Shipping on last year's rates — US tariff rates shifted repeatedly through 2025-2026, confirm in writing.
• Assuming VAT disappeared with the duty exemption — EU VAT still applies on the consolidated value.
• Routing through a third country just to 'change origin' — that is illegal transshipment (see our country-of-origin FAQ).
• Ignoring the new US postal entry process (Entry Type 13 pilot from 22 Sept 2026).

Key Takeaways

• De minimis is gone for China in both the US and EU — treat every parcel as a formal import.
• Landed cost is up 15-40%; the winners consolidate and fulfill locally.
• Bonded warehousing is now core infrastructure, not a nice-to-have.
• The duty-free, low-accountability era 'is not coming back' (Carra Globe, 2026).

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