The $800 De Minimis Threshold: Is It Going Away in 2026?

February 26, 2026 · 7 min read

If you've ever ordered something from Temu, Shein, or AliExpress and wondered why you didn't pay import duties — the answer is the de minimis threshold. Under Section 321 of the Tariff Act, individual shipments valued at $800 or less enter the US completely duty-free and with minimal customs processing.

That loophole has become one of the most debated trade policy issues of 2026.

4 Million+

De minimis packages enter the US every day

How De Minimis Works

Shipments valued at $800 or less (fair retail value) enter duty-free
No formal customs entry required — just a simple electronic manifest
No duties, no tariffs, no Section 301 surcharges
The threshold was raised from $200 to $800 in 2016 under the TFTEA act

Why It's Controversial

The de minimis exemption was designed for travelers bringing back souvenirs and small personal purchases. It was never intended to be an industrial-scale trade policy — but that's exactly what it's become:

Volume explosion: De minimis shipments grew from ~140 million in 2015 to over 1 billion annually
Chinese e-commerce: Platforms like Temu and Shein ship millions of individual packages directly to US consumers, each under $800, avoiding all tariffs including Section 301 China duties
Competitive unfairness: US retailers import in bulk (paying full duties) then compete against de minimis shippers paying zero
Enforcement gaps: CBP can't meaningfully inspect 4 million daily packages — raising concerns about fentanyl, counterfeits, and forced labor goods entering unchecked

What's Being Proposed

Multiple legislative proposals are circulating in 2026:

Eliminate de minimis for China: The most likely near-term action. Would require formal customs entry and full duties on all Chinese-origin shipments regardless of value
Lower the threshold: Proposals range from $200 (back to pre-2016 level) to as low as $10
Require more data: Even if the threshold stays, requiring 10-digit HTS classification and country of origin on all de minimis entries
Sector-specific exclusions: Eliminating de minimis for textiles, apparel, and other sectors with existing trade remedy orders

Who's Affected

Consumers: Prices on Temu, Shein, AliExpress could increase significantly if de minimis is restricted
Chinese e-commerce platforms: Their entire business model depends on duty-free direct shipping
Small businesses: Many source inventory through small-quantity purchases that currently qualify
US retailers: Would benefit from a more level playing field
Logistics companies: Would need to handle formal customs entries for millions more packages

What About the 2026 Import Surcharge?

This is where it gets interesting. The February 2026 import surcharge technically applies to imported goods — but de minimis shipments are exempt from formal entry and duty collection. Whether the surcharge applies to Section 321 entries is an evolving question that CBP is expected to clarify.

⚠️ Watch this space. Legislative and executive action on de minimis could come at any time. If you're a business relying on Section 321 for your supply chain, have a contingency plan for when — not if — the rules change.

💡 For importers: Even if de minimis is restricted, you can reduce your duty burden through free trade agreements and proper HTS classification. Use Tariff Check to look up rates for your products.

Disclaimer: This article reflects the current legislative landscape as of February 2026. De minimis rules may change rapidly. This is not legal or customs advice.