December 17, 2025 | Gava Trade Update
U.S. Customs and Border Protection (CBP) announced on December 17, 2025, that it has collected more than $1 billion in duties on over 246 million low-value shipments since the Trump administration began phasing out the de minimis exemption earlier this year.
The milestone underscores the scale of revenue previously exempt from duties under the former de minimis rules, which allowed low-value imports to enter the United States duty-free.
De Minimis Phaseout Timeline
The administration initiated the de minimis phaseout on May 2, 2025, when shipments from China and Hong Kong were no longer eligible for duty-free entry. The policy was later expanded globally, with CBP fully eliminating the exemption for all countries on August 29, 2025.
“Reaching the $1 billion milestone so quickly shows just how much revenue was slipping away under the old rules,” said CBP Commissioner Rodney S. Scott.
Enforcement and Safety Impact
Beyond revenue collection, CBP reported a sharp increase in enforcement actions tied to low-value shipments. Since de minimis ended for China and Hong Kong, seizures of unsafe and non-compliant goods have risen by 82%.
These seizures include:
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Counterfeit products
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Narcotics
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Faulty or unsafe electronics
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Goods containing hazardous chemicals
According to CBP officials, the removal of the exemption has significantly improved data visibility on e-commerce shipments.
“With increased visibility into data for these low-value shipments, we’re better equipped to detect and disrupt criminal networks,” said Susan S. Thomas, Acting Executive Assistant Commissioner for CBP’s Office of Trade.
What This Means for Importers and Consumers
The end of de minimis represents a fundamental shift in how cross-border e-commerce and low-value imports are regulated. Importers are now subject to greater scrutiny, higher compliance expectations, and duty obligations, while consumers may see changes in pricing and delivery timelines.
CBP continues to provide guidance and educational resources to help businesses adapt to the new framework.
Frequently Asked Questions (FAQs)
What was the de minimis exemption?
It allowed low-value shipments to enter the U.S. duty-free, often used for cross-border e-commerce.
When was de minimis fully eliminated?
CBP fully eliminated the exemption worldwide on August 29, 2025.
Why did CBP end de minimis?
To recover lost tariff revenue, improve enforcement, and reduce the flow of unsafe or illegal goods.
How has enforcement changed?
CBP reports an 82% increase in seizures of unsafe or non-compliant low-value shipments.