The era of duty-free, low-value imports to the US is officially over. In June 2026, US Customs and Border Protection (CBP) codified the suspension of the Section 321 de minimis exemption into permanent regulation, ending any hope of its revival. This move, which followed the initial suspension for China and Hong Kong in May 2025 and a global suspension in August 2025, means that every commercial shipment entering the US—regardless of value—now requires formal entry and duty payment.
For D2C e-commerce brands that have relied on the $800 threshold to ship products directly to US consumers, this is a seismic shift. The days of sending small parcels with minimal paperwork and zero duties are gone. Now, every package must clear customs formally, which brings added costs, complexity, and potential delays.
In this article, we’ll break down what the June 2026 codification means for your business, how it impacts your bottom line, and what you can do to stay competitive in this new regulatory landscape.
What Happened: The End of De Minimis
To understand the significance, let’s recap the timeline:
- May 2, 2025: De minimis suspended for goods from China and Hong Kong.
- August 29, 2025: Suspension extended to all countries via Executive Order 14324, closing transshipment loopholes.
- February 20, 2026: Supreme Court struck down IEEPA-based reciprocal tariffs, but an executive order confirmed de minimis suspension continues.
- March 2026: CBP issued guidance requiring full formal entry for all commercial shipments, regardless of value.
- June 2026: CBP codified the suspension into standing regulation, making it permanent.
According to industry analysis, the volume of de minimis packages skyrocketed from 130 million in the mid-2010s to over a billion by 2024, with a large share originating from China. The US government cited concerns over illicit shipments and revenue collection as reasons for the permanent suspension.
Now, every commercial cargo must be formally entered, with HTS classification and country-of-origin declaration. There is no indication the rule will be reversed, even if tariff rates on China drop.
Impact on D2C Brands: Costs, Timelines, and Compliance
For D2C brands, the death of de minimis has several direct consequences:
1. Increased Costs Per Shipment
Previously, a $50 product shipped to a US customer could arrive duty-free with minimal paperwork. Now, you must pay duties on every package, plus customs brokerage fees. For low-value items, the duty might be small, but the brokerage fees can range from $10 to $50 per shipment, effectively killing your profit margin on cheap products.
For example, a $20 accessory now incurs an average duty of 5-10% (depending on HTS code), plus a $25 brokerage fee—that’s $27 in extra costs on a $20 item. You’d need to raise prices or absorb the loss.
2. Longer Delivery Times
Formal entry requires more documentation and CBP processing. This can add 2-5 days to delivery times compared to the old de minimis process. For D2C brands that promise fast shipping, this is a competitive disadvantage.
3. Compliance Complexity
You now need to classify every product with a valid HTS code, ensure accurate country-of-origin labeling, and file entry documents. Mistakes can lead to fines, delays, or even seizure of goods. This is a significant burden for small brands without a dedicated customs compliance team.
4. Impact on Returns and Exchanges
Returns become more complex. If a customer returns a product, the return shipment may also be subject to duties, creating a financial disincentive for customers to keep the product or for you to accept returns.
“The de minimis exemption was the backbone of cross-border e-commerce. Its permanent suspension forces brands to rethink their entire fulfillment strategy.” — Industry Analyst, Shenzhen Topway
Actionable Strategies for D2C Brands
Adapting to this new reality requires strategic changes. Here are concrete steps you can take:
1. Shift to Bulk Fulfillment
Instead of shipping individual orders from China to US customers, consolidate orders into bulk shipments to a US warehouse or 3PL. This allows you to clear customs once for a large shipment, reducing per-unit costs and simplifying compliance.
- Bulk shipping reduces brokerage fees per unit.
- US-based inventory enables faster delivery and easier returns.
- Customs clearance is handled by your freight forwarder or 3PL.
2. Use a Fulfillment Partner with Customs Expertise
Partner with a fulfillment company that has in-house customs brokers and experience with US import regulations. They can handle classification, documentation, and duty payment, saving you time and reducing risk.
3. Adjust Pricing and Product Strategy
Re-evaluate your pricing to account for duties and fees. Consider raising prices slightly or focusing on higher-value products where the duty impact is relatively smaller. You might also bundle products to increase order value, making the fixed costs of customs clearance more palatable.
4. Explore New Sourcing Options
While China remains a manufacturing powerhouse, you might explore sourcing from countries with preferential trade agreements with the US, such as Vietnam or Mexico, to reduce duty rates. However, this may not be feasible for all products, so weigh the trade-offs.
How GPfulfillment Can Help
At Gray Poplar (GPfulfillment), we’ve been monitoring the de minimis situation closely. Our Shenzhen/Hong Kong hub is perfectly positioned to help you navigate this new landscape.
Air Fulfillment in 7-12 Business Days
We specialize in air fulfillment to the US and EU, with transit times of 7-12 business days. By consolidating your orders and clearing customs in bulk, we minimize the per-unit cost impact of formal entry. Our dedicated customs team ensures your shipments are classified correctly and duties are paid efficiently.
Sourcing and Custom Packaging
Our sourcing team in China can help you find suppliers who can adjust packaging and product specifications to reduce costs. We also offer custom packaging services that protect your brand while ensuring compliance with US labeling requirements.
End-to-End Compliance
With the CPSC’s new eFiling mandate effective July 8, 2026, compliance is more critical than ever. Our team stays up-to-date with the latest regulations, including the new informal entry pathway for mail shipments under $2,500, so you don’t have to.
Case Study: How We Helped a D2C Brand Save 30%
One of our clients, a D2C skincare brand, was shipping individual orders from China to the US. After the de minimis suspension, their costs skyrocketed. We moved them to a bulk consolidation model, shipping weekly to a US 3PL. This reduced their per-unit shipping and customs costs by 30%, and delivery times improved by 5 days.
Conclusion: The Future of Cross-Border E-Commerce
The permanent suspension of de minimis is a game-changer. But it’s not the end of cross-border e-commerce—it’s an evolution. Brands that adapt with smart fulfillment strategies, bulk consolidation, and expert partners will thrive.
At GPfulfillment, we’re ready to help you navigate this new era. Our Shenzhen/Hong Kong hub, air fulfillment speed, and compliance expertise are exactly what you need to keep your US customers happy and your margins healthy.
Ready to adapt? Contact GPfulfillment today for a free consultation and quote.