The De Minimis Exception Is Gone but we keep your shipment moving

Low-value shipments are being stuck or even disposed of at U.S. Customs, leaving importers in the U.S. and exporters in India frustrated and losing money.

Packages that once cleared in hours are now trapped for weeks — or worse, destroyed. 

The reason? 

The De Minimis Exception, the long-standing rule that made importing goods from India under $800 fast and tariff-free, is gone. Overnight, small shipments became big problems.

This blog will serve as a solution to your low value shipment clearance problem. 

What Was the De Minimis Exception and Why It Mattered?

For years, the De Minimis Exception was a quiet hero for international trade. It allowed goods valued under $800 to enter the United States without tariffs or complex paperwork.

That simple rule made it possible for small exporters in India and importers in the U.S. to move products quickly, affordably, and reliably.

It worked beautifully. We ourselves have helped a tea brand in Assam send a $500 bulk order to a café in California without waiting weeks for customs clearance.

A musical instrument maker in Mumbai could deliver to a U.S. distributor without getting buried in tariff codes.

The process was smooth, efficient, and cost-effective.

Why did it matter?

This rule wasn’t just about skipping tariffs; it transformed global logistics efficiency. Here’s how:

• Operational Efficiency: Carriers and customs brokers could batch-process low-value goods through automated systems, dramatically reducing manual clearance work and administrative delays.
• Improved Cash Flow: Importers avoided pre-payment of duties and deferred compliance costs, freeing up working capital and improving margins on fast-moving, low-value SKUs.
• E-Commerce Expansion: The rule enabled direct-to-consumer (D2C) shipping models from countries like India to the U.S., supporting SMEs and online sellers to scale internationally without complex import licenses.
• Data Simplicity: Minimal data requirements meant fewer compliance errors and faster release times — critical for businesses managing hundreds of small parcels daily.
• Supply Chain Agility: Exporters could ship smaller quantities more frequently, aligning production and inventory cycles with real-time demand instead of large, duty-heavy consignments.
• Market Accessibility: The exemption leveled the playing field — smaller Indian exporters could compete with global brands by offering faster delivery and lower landed costs to U.S. customers.

For nearly a decade, this mechanism underpinned the growth of cross-border e-commerce.

It allowed Indian artisans, manufacturers, and online retailers to reach U.S. buyers effortlessly — creating a frictionless trade bridge.

But with the end of the De Minimis Exception, that efficiency vanished. What once took hours now takes days, sometimes weeks — and in some cases, shipments are held, fined, or destroyed for incomplete filings.

How the End of the De Minimis Exception Impacts Importers and Exporters

According to a recent announcement by the U.S. Government, the removal of the De Minimis Exception has already impacted tens of thousands — possibly over 100,000 U.S. small and medium enterprises (SMEs). 

The hardest hit sectors? Retail, drop-shipping, and online marketplaces.

Platforms like Etsy, eBay, Shopify, Amazon Haul, and TikTok Shop — which connect thousands of U.S. small business owners with overseas suppliers — are now facing a massive bottleneck. 

Drop-shippers and third-party manufacturers, especially in categories like promotional products, beauty, and cosmetics, report that hundreds of monthly small orders are now facing 10–15% duties. 

The result?

Rising landed costs, shrinking margins, and thousands of niche importers suddenly in deep pain.

How does this impact imports and exporters?

U.S. Importers: Stuck Between Demand and Delays

• Importers who once relied on steady inflows of small consignments are now watching their supply chains stall.
• Inventory gaps are growing as shipments get trapped in customs for lack of proper documentation.
• Duty unpredictability makes pricing volatile — what was once a $500 landed cost can suddenly spike with unforeseen tariffs and broker fees.
• Customer frustration is mounting as delays stretch from days to weeks, damaging trust with retailers and end buyers.

For importers, the loss of De Minimis means the loss of the just-in-time agility that kept their businesses competitive.

Indian Exporters: Cash Flow Crunch and Operational Chaos

• On the other side of the ocean, Indian exporters are equally squeezed.
• Payments are delayed, since many U.S. buyers pay only after goods clear customs.
• Smaller consignments, once profitable, are now financially unviable due to new documentation, compliance, and tariff costs.
• Re-shipments and returns are rising because unclear classification data leads to customs holds or disposals.
• For e-commerce sellers, craft manufacturers, and niche exporters, it’s not just a delay — it’s a cash flow crisis.

Customs Brokers and Carriers Overloaded

• The sudden influx of low-value shipments requiring full customs entry has overwhelmed logistics networks. 
• Brokers are flooded with manual declarations, and carriers are holding containers while awaiting clearance. 
• This chain reaction means longer dwell times, higher storage charges, and in some cases, disposal of goods deemed non-compliant.

The Bigger Picture: Trade Friction and Lost Opportunity

• This disruption isn’t isolated — it’s reshaping how small-value trade flows between India and the U.S. Many SMEs are now reconsidering export volumes or pausing expansion into the U.S. market altogether. 
• For importers, the uncertainty is driving them to look for partners who can handle compliance, documentation, and clearance efficiently.

Learn more

Our Solution ?

We’ve been in the global logistics and freight forwarding industry for over 40 years, and in that time, we’ve seen plenty of regulatory changes — new tariffs, shifting trade policies, updated documentation rules.

But nothing has shocked the industry quite like the removal of the De Minimis Exception.

This single policy change has left thousands of shipments stranded, importers frustrated, and exporters struggling to stay profitable. 

But with decades of hands-on experience in navigating U.S. customs and international freight regulations, we knew this was more than just another policy shift — it was a signal to evolve.

So, we developed a set of unique and proven strategies to help businesses overcome the challenges of this new trade environment.

1. Advanced Consolidation & Entry Optimization

• Instead of sending dozens of parcels under $800, exporters now aggregate shipments at origin — combining them into a single master consignment with a structured manifest. 
• By using Section 321 entry management, Type 86 filings, and consolidated airway bills, logistics providers can maintain low per-unit costs while clearing through customs as one compliant entry.

2. Intelligent Customs Preparation

• Our clearance approach emphasizes data accuracy and proactive documentation — every invoice, HS code, and declaration prepared in advance to meet new U.S. compliance standards.
• This eliminates the risk of shipments getting stuck or disposed of at customs.

3. Hybrid Routing Models (Air–Ocean–Express Integration)

• To offset higher customs handling times, smart operators are blending multi-modal routing — combining ocean LCL (less-than-container load) for cost efficiency and air express for speed. 
• Hybrid models balance transit time and tariff exposure, keeping supply chains resilient even during customs slowdowns

4. Agile Freight Management

• With multiple routes, bonded facilities, and an integrated freight network, we’ve built flexibility into every stage of the supply chain — allowing goods to move even when one route faces disruption.

5. Compliance-Driven Visibility

• We’ve implemented real-time monitoring systems that give exporters and importers total transparency over their shipments — from pickup to customs to delivery — along with early alerts if any compliance issues arise.

6. Duty Mitigation Through FTAs and Zone Strategies

• Experienced logistics planners leverage Free Trade Agreements (FTAs) and Foreign Trade Zones (FTZs) to legally minimize duty exposure. 
• By routing goods through FTZs, importers can defer or eliminate duties until final domestic entry, keeping low-value trade financially viable.

These strategies aren’t theoretical. They’re battle-tested, developed from decades of working closely with customs authorities, trade regulators, and global carriers.

Because when the rules change, experience is what keeps cargo moving.

Conclusion 

The De Minimis Exception may be history, but trade doesn’t stop — it simply evolves.

Businesses that adapt quickly, backed by experienced logistics partners, are already finding their rhythm again.

In times like these, success isn’t about avoiding change — it’s about navigating it with precision.

With decades of experience in global freight forwarding and a deep understanding of U.S. customs, we’ve learned that every new regulation brings new opportunities for smarter logistics.

When the rules change, we don’t pause — we pivot.

1. What was the De Minimis Exception?

The De Minimis Exception allowed goods valued under $800 to enter the U.S. without paying import duties or completing complex customs paperwork. It simplified low-value cross-border trade, especially for small exporters and e-commerce sellers.

2. Why has the De Minimis Exception been removed?

The U.S. government removed the De Minimis Exception to tighten trade compliance, prevent tariff circumvention, and regulate the surge of low-value shipments entering the country through e-commerce channels.

3. How does the removal of the De Minimis Exception impact U.S. importers?

Importers now face longer customs clearance times, unexpected duty payments, and increased documentation requirements. Many small U.S. businesses relying on just-in-time shipments are struggling with inventory delays and higher landed costs.

4. How are Indian exporters affected?

Indian exporters are experiencing payment delays, higher compliance costs, and increased shipment rejections due to new filing requirements. Smaller shipments that were once profitable have become financially challenging under the new rules.

5. What industries are most impacted by this change?

The most affected sectors include e-commerce, retail, drop-shipping, fashion, beauty, and craft exports — especially those that rely on frequent, small-value shipments to the U.S.

6. Can low-value shipments from India still be cleared quickly?

Yes — but it requires advanced logistics strategies such as shipment consolidation, accurate customs documentation, and use of experienced freight forwarder .