The de minimis exemption, update – USPS halts packages from China and Hong Kong? Yes, No…

Back in September 2024, I posted about “The de minimis exemption” and, over the years, kept track of the proposed changes (and challenges) to how international shipping works (free/low-cost inbound, mostly China), with some specifics about Temu and Shein—which are now in the spotlight.

The de minimis exemption is a special rule for small packages. When companies (mostly in China) ship small, low-cost packages to the U.S., if the package is worth less than $800, it gets in faster and doesn’t need to pay extra fees or much/any customs documentation. This rule was made in 1930 to make trading easier.

There were about 4 million de minimis packages per day in 2024 (Source: Chelsey Tam, a senior equity analyst at Morningstar via CNN).

Here’s the latest from USPS Feb 4, 2025

The de minimis exemption, update - USPS halts packages from China and Hong Kong

International service disruptions
Suspension of Inbound Parcels from China and Hong Kong
INTERNATIONAL SERVICE SUSPENSION NOTICE – effective Feb. 4, 2025
Effective Feb. 4, the Postal Service will temporarily suspend only international package acceptance of inbound parcels from China and Hong Kong Posts until further notice. Note the flow of letters and flats from China and Hong Kong will not be impacted.

The de minimis exemption

It then updated again, less than 24 hours later.

What’s going on? The United States Postal Service was going to halt all package shipments from China and Hong Kong after the elimination(?) the de minimis exemption, which allows duty-free imports under $800. Most news outlets are saying this would disrupt online shopping, may increase costs for consumers and complicating customs clearance for e-commerce reliant on the previous rules. With (new?) added tariffs and fees, platforms like Temu and Shein may have a challenge maintaining low prices, potentially reshaping online shopping in the USA for many items.

The USPS site now says…

“Effective February 5, 2025, the Postal Service will continue accepting all international inbound mail and packages from China and Hong Kong Posts. The USPS and Customs and Border Protection are working closely together to implement an efficient collection mechanism for the new China tariffs to ensure the least disruption to package delivery.”

Looks like some time is needed to figure out how to collect $…?

We will talk about this tonight on ASK an ENGINEER, tune in 8pm ET on all places that have live video (YouTube, TikTok, X, etc..) and our Discord!

U.S. Customs and Border Protection sent this bulletin at 02/03/2025 07:25 PM EST … (PDF, just in case…).

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