President Trump’s tariff policies on imports seem to change daily. Therefore, we will set aside tariff rates for now and instead focus on analyzing the clearance policies for small parcels. After all, professionals need to be aware of even the slightest details. So let’s take a closer look at the intricacies of US small parcel import policies.
The $800 Duty-Free Threshold for Small Parcel Imports
The US has maintained an $800 de minimis duty-free threshold for small parcel imports for about ten years, but many organizations and institutions — including US Customs and Border Protection (CBP) — have long called for changes. We believe the main reasons are as follows:
- Lack of Oversight
Clearance procedures for low-value, duty-free parcels entering the US are extremely simple. No sender or recipient identity verification is required, no detailed customs declaration is needed, and packages are not scanned by machines. Instead, CBP relies on symbolic data checks provided by the shipper or customs broker and performs limited random inspections. This creates significant enforcement gaps, allowing many prohibited items to enter the country via this channel. Moreover, many shippers exploit the $800 exemption by splitting what should be formal shipments into multiple small parcels to avoid duties — essentially a form of consolidated smuggling. Currently, US Customs lacks the capacity to track the final destination of these parcels or verify recipient identities. Many parcels are cleared using false names. - Loss of Tax Revenue
The high $800 threshold has led to a massive influx of B2C e-commerce shipments from abroad, resulting in tax disparities compared to formal entry. The US textile association has long lobbied Congress and the White House, arguing that the duty-free policy for imported parcels is unfair to formal entry importers, whose duty costs are significantly higher. Notably, several major apparel retailers have recently declared bankruptcy, blaming the de minimis policy as a key contributing factor. - Out of Step with International Practices
Compared to other countries, US policies are the most lenient in both taxation and oversight. Other countries are lowering their duty-free thresholds and tightening controls. For example, Canada only allows duty and VAT exemptions for parcels valued under CAD 20. In mainland China, the exemption threshold for personal use imports is RMB 50, with a maximum value of RMB 2,000. Furthermore, express personal parcels in China require a copy of the recipient's ID and documentation proving the value of the goods in order to clear customs.
These issues are the core driving forces behind proposed policy changes.
President Trump’s New Policy on Small Parcel Imports from China (Effective May 2)
We carefully reviewed the latest policy introduced by President Trump regarding small parcel imports from China, set to take effect on May 2 this year. We found many valuable insights.
The key logic of this new policy is the distinction it makes between postal and non-postal import channels.
Postal Channel
Those familiar with international postal services know that international mail is governed by the Universal Postal Union (UPU) treaties, including the Parcel Post Agreement and EMS protocol. Traditionally, the recipient is the party responsible for duties and customs compliance.
However, under the new policy, the US President requires the carrier to prepay duties and purchase a US customs bond. This fundamentally shifts responsibility from the recipient to the carrier. So, who is the carrier? Based on our understanding, this could be the airline handling the international mail, its freight forwarder, or even China Post or Hongkong Post. Ultimately, the burden of duties may fall on the shipper located in mainland China or Hong Kong.
From the policy on mail imports, the US now applies a blanket rule: for packages valued under $800, duties are calculated as either a fixed amount per parcel or a percentage of the declared value. These figures have recently been rising, and we won’t go into the specific numbers here (as many online analyses cover them). What’s critical to note is that this approach is simplistic and blunt—apart from collecting more duties on sub-$800 parcels, there’s no fundamental change in customs enforcement practices. Notably, US Customs has introduced the concept of a "low-value parcel," which we believe may become the foundation for future import policies.
Importantly, US Customs has only adjusted policies for China Post and Hongkong Post, regardless of whether the good’s country of origin is actually China or Hong Kong. In other words, the regulation is based on channel, not origin of the product.
Non-Postal Channels
Non-postal channels refer to all methods outside the international postal system. While some countries allow certain logistics companies to use postal-like clearance methods, we will not address those special cases here.
Under the new policy, all non-postal channels — such as FedEx, UPS, DHL, and ECCF (Express Consignment Carrier Facilities) and freight carrier (T86 model）— must comply with standard US customs declaration requirements. With the removal of the $800 exemption, all such parcels must undergo either informal entry (e.g., T11) or formal entry (e.g., T01) procedures.
For non-postal imports, CBP determines duties based on the origin of the goods. For example, if a pair of shoes made in China is shipped from Canada to the US, duties are still calculated based on China’s tariff rate, regardless of the parcel’s departure point. CBP emphasizes that the country of origin, not the shipment origin, determines the duty rate.
Additionally, for non-postal channels:
- CBP requires payment of the Merchandise Processing Fee (MPF) regardless of value,
- Brokers charge service fees,
- Harmonized Tariff Schedule (HTS) codes and accurate declarations are mandatory.
According to industry experts, many commercial shipments cannot use informal entry procedures like T11. These parcels must go through formal clearance (T01), which is too costly and complicated for individual small parcels.
Therefore, we believe that under current US policy, non-postal channels are not a feasible path for small parcel imports.
Policy Implications
As we can see, following the tax reform, China-to-US parcel imports are now subject to different tax and declaration policies based on the shipping channel, with significant disparities between them.
From these differences, we can infer that CBP may eventually establish a unified clearance model for low-value parcels — possibly one that mirrors the postal model used for China Post and Hongkong Post. This could include a flat-rate tax or percentage-based tax for shipments under $800. In the long run, postal and non-postal policies should converge, as the current inconsistencies are unfair and unsustainable.
Another core issue is how parcel value is determined. Is CBP relying on the invoice data from the sender or the customs broker? How can they detect and prevent false declarations?
We anticipate that US Customs may adopt a regulatory framework similar to China's, requiring overseas e-commerce platforms and major sellers to register within the U.S. and submit accurate data. This includes:
- True order details,
- Payment information,
- Final delivery data.
Only then can CBP address the two core challenges of small parcel imports: regulation and value assessment.
Finally, CBP is likely to introduce new low-value import policies covering other countries and regions by September of this year. We are monitoring the situation closely and will share any developments promptly.
We are in ongoing discussions with industry experts and regularly communicate with U.S. Customs. Through our professional analysis, we aim to provide insights not easily found elsewhere and help our readers gain a clearer view of what’s to come.
Lucas Zheng is the founder of SameZip and senior consultant of Piggyexpress, and loves the US Postal Service and logistics industry. He has spent 16 years researching and studying the US Postal Service, US logistics, and US package delivery. He is familiar with all e-commerce delivery channels in the United States, China to the United States, the United States to China, and domestic China.
