De Minimis Trade Exemption Ends for China: What Amazon Sellers Need to Know About New Tariff Rules
Effective May 2 2025 the U.S. ended the $800 de minimis exemption for China/Hong Kong shipments. All parcels now require a formal Entry 11 filing, face a 120 % ad valorem or $100 flat postal fee, and stacked freight tariffs of roughly 30 % (10 % reciprocal + 20 % IEEPA). Entry 86 is discontinued.
Overview
Effective May 2 2025, the United States ended the de minimis exemption for shipments originating in China and Hong Kong. The change means that any import, regardless of value, now incurs duties and must clear formal customs entry. Amazon sellers who previously relied on the $800 duty‑free threshold must adjust sourcing, pricing, and inventory plans to avoid eroding margins.
Key Points
- De minimis exemption removed — All goods from China or Hong Kong now face tariffs, even parcels valued under $800.
- Postal tariff spike — International mail items are charged the higher of a 120 % ad valorem duty or a flat $100 fee per package.
- Entry Type 86 discontinued — Low‑value imports can no longer use the streamlined Entry 86; Entry 11 is now the default for most small shipments.
- Stacked freight tariffs — Standard freight shipments attract a combined rate of roughly 30 % (10 % reciprocal tariff plus 20 % IEEPA fentanyl‑related tariff) through July 11 2025.
- Amazon Haul impact — The ultra‑low‑price storefront that ships directly from China loses its duty‑free advantage, weakening its price competition with platforms such as Temu and Shein.
- Legal uncertainty persists — A federal court has blocked broader reciprocal tariffs, yet collections continue pending appeal, leaving open the possibility of retroactive refunds.
How the New Tariff Rules Work
- Customs entry requirement — Every shipment from China or Hong Kong must be entered through the formal customs system, even a $50 phone‑case parcel. For example, a seller sending 200 cases of a $12 accessory now files an Entry 11 declaration and pays the applicable duty.
- Postal fee calculation — The customs authority applies either a 120 % ad valorem charge or a $100 flat fee, whichever is larger. A $600 order of hair‑clips sent via international mail would incur a $720 ad valorem duty, but because $100 is lower, the flat $100 fee is applied, resulting in a total duty of $720 + $100 = $820.
- Freight tariff stacking — When the same $600 order is shipped by standard freight, the 10 % reciprocal tariff adds $60 and the 20 % IEEPA tariff adds $120, producing a combined $180 duty (30 % of value). Adding the $100 flat postal‑type fee that still applies to freight yields a total of $280, pushing the landed cost to $880 before freight and brokerage fees.
Analysis & Recommendations
Why This Matters
The rule change can add $100 flat fees or up to 30 % duties to each shipment, turning a $15 brush into a $115 landed cost and eroding margins by hundreds of percent. Sellers must adjust pricing, consolidate freight, or shift sourcing to avoid unsustainable losses.
Key Takeaways
- De minimis exemption removed on May 2 2025; all China/HK shipments incur duties regardless of value.
- Entry 86 is discontinued; Entry 11 becomes the default customs entry for low‑value imports.
- Postal shipments are charged the higher of 120 % ad valorem duty or a $100 flat fee per package.
- Standard freight shipments face a combined 30 % tariff (10 % reciprocal + 20 % IEEPA) plus a $100 flat fee.
Recommended Actions
- →In Seller Central, go to Settings > Shipping Settings and update your shipping plans to use freight consolidation for small items.
- →Create a checklist in Seller Central > Performance > Account Health to ensure every China/HK shipment includes an Entry 11 declaration with HS code...
- →Review product sourcing in Procurement > Supplier Management and shift eligible SKUs to Vietnam or other low‑tariff countries to reduce duty rates.
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