The $800 de minimis customs exemption is eliminated for low-value shipments from China and Hong Kong

Beginning July 1, 2027, the One Big Beautiful Bill Act eliminates the $800 de minimis customs exemption for packages shipped directly from China and Hong Kong. The exemption had allowed consumers and companies to import individual packages worth under $800 duty-free — a threshold exploited by Shein, Temu, and other fast-fashion and e-commerce companies to ship hundreds of millions of low-cost packages annually without paying tariffs or undergoing customs inspection. The change will raise prices on low-cost goods for American consumers while leveling the playing field for domestic retailers who pay full duties. CBP estimates more than 1 billion de minimis shipments entered the U.S. in fiscal year 2023, up from 140 million in 2015.