The U.S. government has temporarily reinstated the de minimis exemption, which allows packages valued under $800 to be imported duty-free, reversing an earlier decision that had disrupted international parcel shipments.
According to a statement from the White House, the exemption will remain in place while authorities establish systems to efficiently process and collect tariffs on the millions of de minimis, or Section 321, packages that U.S. Customs and Border Protection (CBP) handles daily. The White House clarified that the exemption will be removed once the Secretary of Commerce determines that these systems are fully operational.
The initial removal of the exemption was part of a broader effort to impose a 10% tariff on Chinese goods, a move that caught the parcel shipping industry off guard. Shortly after, the U.S. Postal Service (USPS) suspended package handling from China and Hong Kong. However, USPS later resumed operations, working with CBP to establish an efficient tariff collection mechanism to minimize disruptions.
CBP now faces the challenge of processing duty and information for the approximately 4 million de minimis packages it receives daily, the majority of which originate from China. The rapid rise of e-commerce platforms like Temu and Shein—estimated to account for around 30% of e-commerce imports into the U.S.—has significantly increased the volume of such shipments.
It remains uncertain how long it will take CBP to implement the necessary systems to handle this workload. The growing demand for e-commerce has driven increased air cargo utilization in recent years, with industry experts assessing the potential impact of the exemption’s removal.
While some fear higher prices and shipping delays, others suggest the effects may be less severe. At the World Cargo Summit, Swissport’s Vice President for E-Commerce, Nikolia Schaffner, noted that with the average e-commerce package valued between $15 and $18, even a 20% tax would be manageable.
Both Temu and Shein have previously stated they are prepared for changes to the de minimis exemption. Meanwhile, Xeneta’s Chief Airfreight Officer, Niall van de Wouw, highlighted that Chinese e-commerce exports have grown by 20%-30% annually in recent years. Despite the imposition of tariffs, he believes Chinese goods will still be more affordable than traditional retail purchases. However, he cautioned that processing delays could pose a greater concern for consumers than added costs.
DSV CEO Jens Lund also expressed confidence that major e-commerce platforms will maintain their pricing advantage over traditional retailers. He added that some manufacturers may relocate production outside of China to maintain exemption eligibility.
Source: aircargonews.net