The United States has officially ended its long-standing tariff exemption on international parcel shipments valued under $800, a move that will significantly raise costs for businesses and consumers. The change took effect on Friday, with the U.S. Customs and Border Protection (CBP) now collecting full duties on all packages regardless of value.
A six-month transition period has been announced, allowing foreign postal services to opt for a flat duty of $80 to $200 per package depending on the country of origin. After February 28, 2026, however, all parcels must be taxed based on their actual value.
The policy eliminates what was known as the “de minimis exemption,” in place since 1938 and last raised to $800 in 2015. Officials argue that removing the exemption will curb narcotics shipments, close loopholes exploited by e-commerce firms, and generate billions in annual tariff revenue.
Under the new system, parcels from countries with lower U.S. tariff rates, such as the United Kingdom and the European Union, will face an $80 flat fee. Shipments from countries facing higher tariff rates—such as China, India, Brazil, and Canada—will be charged $200 per package during the transition period. Express carriers like FedEx, UPS, and DHL, along with foreign postal agencies, will be responsible for collecting the duties and processing paperwork.
While some foreign postal services briefly suspended shipments to the U.S., governments including the U.K., Canada, and Ukraine have confirmed continued parcel deliveries. Officials say they are working to minimize disruptions as the new system is implemented.
