De Minimis And Foreign Trade Policy

The de minimis rule determines whether imported goods can enter a country without triggering duties or taxes. 

Understanding what is de minimis– and how thresholds vary by origin and destination – is key to managing cross-border shipping costs and compliance.

De minimis is a customs term that defines the threshold under which goods can enter a country without incurring duties or taxes. 
The de minimis threshold varies by country and territory and helps small-value shipments clear customs more efficiently.
That means if your goods are worth less than the de minimis threshold, you typically don't have to pay import tariffs or duties.

The de minimis rule specifies the value limit that determines whether duties and/or taxes apply. The rule varies by country and territory and can change based on trade agreements or policy updates.

Some countries and territories also have different de minimis rules or thresholds for products originating from certain countries. For instance, they may have different import tariffs or duties for goods made in China versus those made in Mexico. And it’s typically the country or territory where the item was made – if different from the country or territory the item was shipped from – that determines its de minimis eligibility.  

So, if an item is made in China and then shipped from Vietnam to Australia, the country of origin for de minimis assessment is typically considered to be China, not Vietnam. 

A de minimis exemption typically allows for informal entry of goods into the country and eliminates the need to pay duties and tariffs. This may help small businesses stay competitive in cross-border markets by avoiding complex customs paperwork and reducing the total costs customers pay for their products. 

This may be particularly beneficial for e-commerce businesses that frequently ship small, low-value packages internationally. Avoiding duties, taxes, and complicated customs paperwork through a de minimis exemption may help them offer competitive pricing, faster delivery, and a smoother shopping experience for customers globally.

For example, consider a small online store in Australia that sells handmade candles to customers in the US. Because each order is typically valued at $50 – below the US de minimis threshold of $800 * – the store doesn't have to fill out complicated customs forms and import duties are avoided. This may make it easier for the business to expand its global reach.

Foreign trade policies are a government’s framework for managing international trade. They may include rules on tariffs, exemptions, trade agreements, and the import/export processes. 

Foreign trade policies may also directly influence whether a shipment qualifies for a de minimis exemption.

De minimis thresholds eliminate the need to pay duties or taxes when importing low-value goods. This reduces final costs for customers and therefore supports e-commerce and encourages trade volume. 

Consider a small fashion label in Vietnam that sells lightweight summer dresses online for USD$45 each. When a US customer places an order, the package is shipped directly to them under the US de minimis threshold of $800*, meaning no import duties or tariffs apply and customs paperwork is minimal. 

This allows the business to offer fast, affordable international shipping and keep its prices competitive.

Some foreign trade agreements include negotiated de minimis thresholds to promote smoother trade between member countries. 

By simplifying customs processes, these agreements may particularly benefit small businesses and e-commerce traders by lowering entry barriers and transaction costs.

The application of de minimis rules vary between countries and territories. 

For instance, some nations apply the de minimis exemption solely to customs duties, but still collect sales taxes like VAT or GST on low-value imports. 

Additionally, factors like shipping method, product category, and transaction type can influence the application of the de minimis exemption in certain countries. 

By understanding and strategically applying de minimis rules, businesses can enhance their international shipping operations, reduce costs, and provide a seamless experience for their customers.

Global trade regulations are continually evolving, which presents ongoing challenges for businesses – especially in e-commerce.

Frequent changes, such as the 2025 US policy shift ending the de minimis exemption for low-value imports from Mainland China and Hong Kong SAR, China, require businesses to adapt swiftly.  

This change mandates formal customs entry and duties for all packages from these regions, which impacts small businesses reliant on cross-border trade.

Official government websites can help you monitor and interpret changes to import thresholds and de minimis rules.

• US Customs and Border Protection (CBP): www.cbp.gov

• German Customs Administration (Zoll): www.zoll.de

• Australian Border Force (ABF): www.abf.gov.au 

• General Administration of Customs China (GACC): english.customs.gov.cn

Not all shipments qualify for de minimis exemptions. Goods may exceed the set value threshold, fall into restricted or sensitive product categories, or originate from countries excluded by trade policy. 

For example, 2025 US policy changes have ended de minimis exemptions for goods shipped from or manufactured in Mainland China and Hong Kong SAR, China, regardless of their value.

In such cases, duties and taxes must be paid, even for small, low-cost items. To reduce the impact of losing de minimis exemptions, businesses can rethink how they handle logistics. They may also consider alternative business strategies such as intra-Asia trade or expanding business into the UK or Germany.  

This includes strategies that limit customs entries, reduce shipping volume, or avoid triggering duties unnecessarily. 

De minimis refers to the minimum value of goods that can be imported without incurring duties or taxes.

It reduces landed costs and paperwork, making it easier for small businesses to trade globally.

The de minimis exception is a customs provision that allows duty-free entry of low-value goods under a set threshold.

Foreign trade policies determine how much importers pay in duties, what documentation is required, and whether exemptions like de minimis apply. While policies may not directly affect shipping costs, they may affect the time and cost involved in preparing shipments as well as the landed cost of products. 

The de minimis can reduce handling and delivery time of goods and reduce the total paid for goods—ideal for online retailers who operate internationally. 

Businesses should find alternative ways to reduce the cost of shipping and handling. These may include consolidating shipments to save on brokerage fees or splitting shipments to ensure that if any items are eligible, the de minimis applies.

Updates happen regularly due to trade agreements, economic policies, or international negotiations. Visit official government websites or the FedEx Tariff Hub to stay up to date.

De minimis thresholds and foreign trade policies directly affect costs, compliance, and market access. They’re essential tools for managing cross-border operations.

Understanding what is de minimis and your obligations helps reduce delays and penalties while improving customer satisfaction.

For businesses shipping to the US and navigating the evolving landscape of U.S. import tariffs, FedEx has created an information hub to keep you informed and help you adapt.  

*De Minimis values and information current at the time of writing. Please refer to the latest customs rules and regulations for your destination country prior to shipping.