SME  /  E-COMMERCE

By FedEx | August 31, 2026

​​As the US and EU tighten de minimis rules for low-value imports, SMEs need to understand the impact and build greater flexibility into their cross-border operations.

• De minimis rules for low-value imports are changing across major markets, creating new costs and customs considerations for SMEs.
• SMEs can adapt by reviewing landed costs, shipment data, fulfillment models, and customer expectations across different markets.
• Building flexibility into supply chains and working with an experienced logistics provider can help SMEs respond to changing trade requirements.

Cross-border trade is becoming more volatile. As governments reassess tariffs, customs rules, and low-value imports, consumers and small businesses are bracing for higher costs and potential delays.

For SMEs that rely on global supply chains, this uncertainty can make decisions around pricing, inventory, and expansion more challenging. While tariffs and trade policies are largely outside a business owner’s control, businesses can prepare to adapt more effectively as policies and economic conditions shift.

One recent change receiving growing attention is the removal or tightening of de minimis exemptions for low-value imports. The US and EU are changing their approach, while markets across Asia Pacific (APAC) have been tightening requirements in different ways.

Understanding what these changes mean and planning for them can help SMEs keep cross-border operations moving.

What is the de minimis exemption?

The de minimis exemption is a customs provision that allows qualifying low-value imports to enter a country with reduced customs requirements and, in some markets, without paying import duties. The principle is that when the value of a shipment is very low, the cost of collecting a small amount of customs duty may outweigh the administrative effort involved.

However, the growth of e-commerce has changed the landscape significantly. Instead of a small number of low-value shipments, customs authorities now process millions of individual parcels sent directly to consumers. This has prompted governments to reconsider whether existing de minimis rules remain relevant today.

For SMEs, it is important to distinguish between the de minimis threshold and the duty itself. A threshold may determine whether a shipment qualifies for simplified treatment or duty relief, but this does not mean every shipment below that value is automatically free of all taxes, fees, or customs requirements.

Is de minimis still in effect?

There is no single global approach to de minimis exemptions, and the rules differ by market. However, a clear trend is emerging: governments are tightening the treatment of low-value imports.

In the US, duty-free de minimis treatment for shipments valued at USD 800 or less was suspended for all countries from August 29, 2025. These shipments are now subject to applicable duties, taxes, and fees, with requirements varying by shipment and entry method. The suspension remains in effect, while the US Congress has legislated for the exemption to be permanently closed from July 2027.

In the EU, the EUR 150 customs duty exemption was removed from July 1, 2026. A temporary EUR 3 customs duty now applies to items in consignments valued at up to EUR 150, and the measure is scheduled to remain in effect until July 2028.

In the UK, the GBP 135 customs duty relief remains in place for now, but the government plans to remove it and introduce new customs arrangements for low-value imports by October 2028 at the latest.

Closer to home, markets across APAC have been taking different approaches to low-value imports. Singapore introduced a goods and services tax (GST) on imported low-value goods in 2023, while Australia has collected GST on qualifying low-value imported goods since 2018. Japan and New Zealand continue to have low-value thresholds but apply their own tax and customs requirements.

The takeaway is not that every market is eliminating its de minimis rule. Rather, businesses can no longer assume that low-value shipments will receive the same treatment everywhere.

What could this look like in practice?

Consider an SME in Singapore selling a USD 60 consumer product to customers in the US. Previously, the SME could ship individual orders directly to US customers and benefit from the USD 800 de minimis threshold, creating a relatively low barrier to entry.

With de minimis treatment suspended, the same business must now account for applicable import duties, taxes, clearance requirements, and other costs associated with bringing the product into the US.

This leaves the SME with several choices. Should the SME absorb the additional costs and protect its retail price, or pass some of them on to customers? Should it consolidate inventory into larger shipments, or hold stock closer to US customers through a fulfillment partner?

There is no universal answer. The right approach depends on the product, shipment volumes, margins, and customer expectations.

How can SMEs adapt to changing de minimis rules?

The removal of a de minimis exemption doesn’t have to derail operations, but it does call for some smart adjustments. Here are a few things small businesses can do.

• Know your landed costs. Include import duties, taxes, clearance fees, and shipping costs in your pricing and margin calculations. Review these costs by destination rather than relying on a single global assumption.
  

• Get shipment data right. Accurate product descriptions, HS codes, declared values, and country-of-origin information become even more important as customs requirements increase. Good documentation can help reduce avoidable delays and unexpected charges.
  

• Review your fulfillment model. Direct-to-consumer shipping may remain the right option for some products. For others, consolidating shipments or holding inventory closer to customers could make more commercial sense.
  

• Set clear customer expectations. Be transparent about whether duties and taxes are included in the purchase price or payable by the recipient. Unexpected charges at delivery can quickly undermine the customer experience.
  

• Regularly review your markets. A market that is commercially attractive today may look different when duties, taxes, or customs rules change. Build regular reviews into your cross-border strategy.
  

• Work with an experienced logistics provider. As trade rules become more complex, SMEs can benefit from support that extends beyond transportation. For example, FedEx offers customs and compliance assistance through FedEx Trade Solutions, as well as digital tools like Customs AI to help simplify the shipment documentation process.

Ultimately, the objective is not to predict every policy change. It is to build enough flexibility into your supply chain to respond when change happens. By monitoring destination-market requirements and understanding the true cost of getting goods to customers, SMEs can make better decisions as the rules evolve.