WHAT’S THE LATEST

On July 30, President Trump signed an Executive Order suspending the de minimis exemption for commercial shipments, effective August 29 at 12:01 a.m. ET.

WHAT WE KNOW

  • Beginning August 29, imported goods, other than those sent through the international postal network, valued at $800 or less that would otherwise qualify for the de minimis exemption, will be subject to all applicable duties.
  • Under the postal network exception, goods shipped through the postal system will be assessed duties according to one of the following:
    • Ad valorem duty: A duty equal to the effective tariff rate imposed under the International Emergency Economic Powers Act (IEEPA) that is applicable to the country of origin of the product. This duty shall be assessed on the value of each package. 
    • Specific duty: $80 per item to $200 per item, depending on the effective IEEPA tariff rate applicable to the country of origin of the product. 
      • NOTE: The specific duty methodology will be available for six months, after which all applicable shipments must comply with the ad valorem duty methodology.
    •  Transportation carriers delivering shipments to the U.S. through the postal network must collect and remit duties using one method at a time for all covered shipments and may change the method used no more than once per month (unless otherwise determined by U.S. Customs and Border Protection (CBP)) with 24 hours’ notice to CBP. 
    • Shipments sent through the international postal network that are subject to antidumping and countervailing duties or a quota must continue to be entered under an appropriate entry type in ACE to the extent required by all applicable regulations.
    • De minimis shall remain available for postal shipments until adequate systems are in place to fully and expeditiously process and collect duties applicable for postal shipments otherwise eligible for duty-free de minimis treatment

WHAT'S NEXT?

Our team is currently working with dozens of retailers to future-proof their international ecommerce programs, while also supporting the launch of U.S.-based 3PL operations. We continue to actively monitor developments day by day, ensuring we have the latest information to guide our clients.

If you have questions, please reach out to your SEKO representative, or email us at hello@sekologistics.com.