The de minimis rule is one of the most commercially significant provisions in U.S. customs law — and one of the most misunderstood after a wave of 2025-2026 executive actions reshaped its scope. Under the current framework, understanding exactly which shipments still qualify, which do not, and what compliance obligations apply to Type 86 entries is essential for e-commerce operators, third-party logistics providers, and any importer relying on low-value parcel flows.
What Is the De Minimis Rule?
The de minimis rule is a customs provision that exempts low-value imports from formal entry, payment of duties and taxes, and most Partner Government Agency (PGA) data requirements. In the United States, the threshold is $800 per person per day, established by the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA), which raised the limit from $200. The statutory basis is 19 U.S.C. §1321, the administrative exemption provision of U.S. customs law, implemented through 19 CFR Part 10.
The practical effect is that a shipment valued at $799 or less addressed to a single recipient on a single day can enter the United States without a formal customs entry, without payment of tariff duties, and without a customs broker. This made the de minimis provision the operational backbone of cross-border e-commerce, enabling direct-to-consumer shipments from overseas manufacturers to U.S. buyers at low or zero tariff cost.
Statutory Definition: 19 U.S.C. §1321
Section 1321 authorizes the Secretary of the Treasury to prescribe rules for the entry of articles free of duty and tax when the aggregate fair retail value of articles imported by one person on one day does not exceed the threshold. “One person, one day” is the key limiting principle: each recipient may receive one qualifying shipment per day. The statute also allows CBP to restrict the exemption for articles whose importation is otherwise prohibited or restricted by law.
Section 321 Informal Entry vs Type 86 Entry
Two distinct filing mechanisms exist for de minimis shipments:
- Section 321 release (also called “informal entry” or “Release” in ACE): the carrier files a simple manifest entry. No duty is assessed. Minimal data is required. This is the traditional mechanism used by the USPS, express carriers, and couriers for qualifying low-value parcels.
- Entry Type 86: introduced by CBP in 2019 through the ACE Cargo Release system. Type 86 allows Section 321 de minimis shipments to be entered into ACE with PGA data (FDA, USDA, CPSC flags) attached. It enables electronic PGA holds and release decisions without converting the shipment to a formal entry. Type 86 is now required for many categories of goods with PGA oversight, even at values below $800.
2026 Changes to De Minimis: Executive Action
The Trump administration’s 2025-2026 executive actions fundamentally altered the de minimis landscape, most significantly for Chinese-origin merchandise. These changes represent the most significant restriction on the de minimis exemption since TFTEA raised the threshold in 2015. For importers relying on de minimis flows from China, the tariff impact is equivalent to a formal entry tariff stack. Our Section 301 tariffs on China guide covers the underlying duty landscape that now applies to these goods.
China-Origin De Minimis Suspension
Executive orders issued in February 2025 suspended the de minimis exemption for goods originating in China and Hong Kong. Effective May 2, 2025, all postal shipments from China valued under $800 that previously cleared as Section 321 releases became subject to full formal entry, duty assessment (including the applicable IEEPA/Section 301 tariff stack), and PGA data submission. For non-postal express carrier shipments (DHL, FedEx, UPS), CBP implemented a flat-fee alternative: $25 per parcel (rising to $50 on June 1, 2025) in lieu of formal entry ad valorem duties, subject to change by proclamation.
The practical effect was immediate and significant: platforms that had relied on direct-from-China parcel flows at zero duty cost suddenly faced tariff exposure that, combined with the IEEPA 145% rate and applicable Section 301 duties, made the de minimis-based business model economically unsustainable for most product categories. Understanding the full current tariff rates by country is essential context for evaluating alternative sourcing strategies.
Treatment of Merchandise Still Eligible
De minimis remains available for shipments from all countries other than China and Hong Kong, subject to the one-person, one-day rule and the $800 threshold. Goods subject to Section 232 tariffs (steel, aluminum, copper, autos) are explicitly excluded from de minimis treatment regardless of origin — meaning a shipment of aluminum parts valued at $600 from Canada still owes Section 232 duties. Similarly, goods subject to active antidumping or countervailing duty orders are excluded from de minimis treatment by statute regardless of value or origin.
How De Minimis Works in Practice
For shipments that remain eligible, the operational mechanics are straightforward but require attention to the “one-day, one-importer” rule and PGA data requirements.
The One-Day, One-Importer Rule
The $800 threshold applies per person per day in aggregate across all de minimis entries. A single consumer receiving two separate $500 packages from two different senders on the same day has exceeded the threshold ($1,000 aggregate), and at least one package is subject to formal entry. CBP enforces this through manifest data matching recipient names and addresses. Carriers and freight forwarders are responsible for ensuring compliance; misclassification as de minimis when the aggregate threshold is exceeded constitutes a customs violation.
A tariff consulting firm can review your parcel manifest processes to identify threshold compliance gaps before CBP does.
PGA Data Requirements (FDA, USDA, CPSC)
CBP’s Type 86 entry type requires submission of PGA data for goods regulated by the Food and Drug Administration (FDA), U.S. Department of Agriculture (USDA), Consumer Product Safety Commission (CPSC), and other agencies. For example, a cosmetic valued at $400 imported under Type 86 must include FDA-required data (product category, manufacturer, country of origin) even though no duty is assessed. Failure to include required PGA data triggers a hold in ACE, preventing release.
ACE Submission Flow
Type 86 entries are filed by authorized filers through the ACE Cargo Release platform. The filing includes the HTS classification at the 6-digit level (not the full 10-digit required for formal entries), the declared value, origin country, recipient information, and any applicable PGA data elements. CBP’s automated targeting system reviews the filing and issues a release, hold, or examination order. Our customs clearance software integrates directly with ACE to automate Type 86 submissions and PGA data population for high-volume parcel flows.
What Changed for E-Commerce Sellers and 3PLs
The 2025-2026 de minimis restrictions disproportionately affected two business models: direct-from-China e-commerce operations and U.S.-based third-party logistics providers (3PLs) managing cross-border fulfillment for overseas sellers.
Drop-Ship and Fulfillment Models
Drop-ship operations that relied on Chinese manufacturers shipping directly to U.S. consumers under de minimis now face a binary choice: absorb the tariff cost (often 150%+ effective rate on Chinese goods), shift inventory to a U.S. warehouse (converting to domestic fulfillment with tariff paid on the warehouse replenishment shipment), or source from a non-Chinese origin that retains de minimis eligibility. Many 3PLs have seen significant volume shifts to bonded warehouse and fulfillment-by-warehouse models as a result.
Express Carrier Integrations
DHL, FedEx, and UPS updated their cross-border systems to handle the new China de minimis restrictions, including the flat-fee duty collection mechanism for postal-equivalent shipments and the ACE Type 86 filing requirements for express shipments. Carriers now require origin country declarations at the time of pickup for all shipments potentially subject to the China de minimis suspension, adding documentation overhead to shipper workflows.
Compliance Risk and Enforcement
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CBP has significantly increased enforcement focus on de minimis abuse, including:
- Shipment splitting: deliberately dividing a single commercial order into multiple sub-$800 shipments addressed to the same recipient to avoid duties. This is explicitly prohibited under 19 U.S.C. §1321 and constitutes customs fraud under 19 U.S.C. §1592.
- Undervaluation: declaring a customs value below the actual transaction value to stay under the $800 threshold. CBP cross-references declared values against marketplace data and prior entries for the same goods.
- Origin misrepresentation: declaring non-Chinese origin on goods that originate in China to avoid the China de minimis suspension. This is subject to penalty under 19 U.S.C. §1592 and, in egregious cases, criminal referral under 18 U.S.C. §542.
- PGA circumvention: using de minimis to import FDA-regulated goods that would not pass review under a formal Type 86 or formal entry filing. CBP and FDA jointly target high-risk product categories including dietary supplements, cosmetics, and electronic devices.
For a review of your organization’s de minimis compliance posture, our customs brokerage services team conducts parcel program audits that identify threshold, valuation, and PGA data risks before they become enforcement actions.
How to Adapt Your Tariff Strategy in 2026
The de minimis changes require a deliberate strategic response for any business that relied on sub-$800 Chinese parcel flows. The key decisions are:
- Origin shift: can the product be sourced from Vietnam, India, Mexico, or another country that retains de minimis eligibility? This requires a full tariff and landed cost analysis — our tariff calculation guide walks through the methodology.
- Warehouse import model: import goods under a formal entry to a U.S. bonded warehouse or FTZ, pay the applicable tariff on entry, and fulfill domestically at zero additional tariff cost. This concentrates the tariff cost at the import point rather than at each parcel level.
- First Sale valuation: if continuing to import from China under formal entry, First Sale valuation reduces the dutiable customs value to the factory price rather than the importer’s purchase price, reducing the absolute dollar amount of tariff owed across all applicable programs.
- Exclusion monitoring: track USTR Annex III product-level exclusions from IEEPA rates, which reduce the tariff stack on specific HTS codes.
Our trade advisory services team builds de minimis transition plans that evaluate each of these options against your actual parcel volume, product mix, and customer delivery requirements. The Reciprocal Tariff Act framework provides additional context on how the tariff environment affecting these decisions is structured.
Frequently Asked Questions
What is the de minimis rule in U.S. customs?
The de minimis rule under 19 U.S.C. §1321 allows imports valued at $800 or less per person per day to enter the United States without a formal customs entry, without duty payment, and with reduced data requirements. The $800 threshold was established by TFTEA in 2015, raising it from the prior $200 limit.
Is the $800 de minimis threshold still in effect in 2026?
Yes, the $800 threshold remains in effect for shipments from most countries. However, significant restrictions were imposed in 2025: goods originating in China and Hong Kong are no longer eligible for the de minimis exemption, and goods subject to Section 232 tariffs or active AD/CVD orders are excluded regardless of origin or value.
Did Trump eliminate the de minimis exemption?
Not entirely. Executive orders in 2025 suspended de minimis eligibility specifically for Chinese and Hong Kong-origin goods, not for goods from all countries. The $800 threshold and Section 321 informal entry process remain available for qualifying goods from other origins. The suspension for China was the largest single change to de minimis since the threshold was raised in 2015.
What is the difference between Section 321 and Type 86 entries?
Section 321 release is a simple manifest-based clearance mechanism requiring minimal data, used for qualifying de minimis shipments. Entry Type 86, introduced in ACE in 2019, is a more structured de minimis entry that requires HTS classification and Partner Government Agency (PGA) data for regulated goods (FDA, USDA, CPSC). Type 86 enables CBP and PGA agencies to perform electronic targeting and release decisions on de minimis shipments without converting them to formal entries.
Does de minimis apply to Chinese e-commerce shipments?
No, as of May 2, 2025. Chinese-origin goods are no longer eligible for the de minimis exemption under the executive orders issued in February 2025. Postal shipments from China are subject to formal entry and full duty assessment. Express carrier shipments from China may be subject to a flat-fee alternative duty structure. Both mechanisms mean Chinese parcel shipments now carry tariff costs that were previously zero under de minimis.
What data do I need to submit for a Type 86 entry?
A Type 86 entry requires: importer of record EIN or CBP-assigned number, recipient name and address, declared value, country of origin, 6-digit HTS classification, and any applicable PGA data elements (FDA product category, USDA permits, CPSC regulated article designation). The entry is filed through ACE Cargo Release by an authorized filer.
Can importers use de minimis to split larger shipments?
No. Deliberately dividing a commercial order into multiple sub-$800 shipments to avoid duties is explicitly prohibited under 19 U.S.C. §1321 and constitutes customs fraud under 19 U.S.C. §1592. CBP cross-references recipient addresses, manifest data, and commercial patterns to identify shipment-splitting schemes, which are subject to penalties up to the domestic value of the merchandise.
Map Your 2026 De Minimis Exposure
De minimis is no longer a simple low-value clearance shortcut — it is a compliance-intensive program with origin-specific restrictions, PGA data obligations, and significant enforcement risk. Combining our customs clearance software with trade advisory expertise lets your team map exactly which parcel flows are still eligible, which now require formal entry, and what the tariff cost of each alternative sourcing scenario looks like.
