De Minimis Elimination: What You Need to Know About HTS Codes

The $800 de minimis exemption is gone. Every import into the US now requires a 10-digit HTS code filed electronically through ACE. Here's what changed and how to comply.

Last updated: March 2026.

What changed

Before August 29, 2025, goods valued under $800 entered the US duty-free under Section 321 of the Tariff Act — the "de minimis" exemption. These shipments didn't require formal customs entry, and critically, CBP regulations did not require the submission of HTS codes for de minimis entries.

That exemption has been suspended for all countries. Every import — regardless of value — now requires:

1. A formal customs entry filed through ACE (Automated Commercial Environment)
2. A 10-digit HTS code for each product
3. Payment of applicable duties (MFN + Section 301/232 + any AD/CVD)

Who is affected

Anyone who previously shipped goods to the US without a formal customs entry:

• Direct-to-consumer ecommerce — Shein, Temu, AliExpress sellers and their logistics partners. These platforms shipped ~600,000 packages daily to the US under de minimis.
• Small importers and Etsy/Amazon sellers — sourcing individual products from overseas suppliers.
• Sample shipments — product samples, prototypes, and trade show materials.
• Returns and replacements — items shipped back from overseas repair or fulfillment centers.
• Freight forwarders and 3PLs — now responsible for classification on behalf of their clients.

What is an HTS code?

The Harmonized Tariff Schedule of the United States (HTSUS) is a 10-digit classification system that assigns a specific code to every product that can be imported. The code determines the duty rate.

You need all 10 digits. The first 6 are internationally harmonized (same worldwide). Digits 7-10 are US-specific.

How to classify your products

Option 1: Hire a customs broker

Licensed customs brokers charge $5-15 per additional line item for manual classification. For complex products, specialist consulting runs $150-500+ per classification. This works for small volumes but doesn't scale.

Option 2: Use the USITC website

The USITC website publishes the full tariff schedule. You can search by keyword or browse by chapter. Free but manual — you need to understand GRI (General Rules of Interpretation) to classify correctly.

Option 3: Use an API

For any volume above a few dozen products, API-based classification is the only practical option. Describe your product, get ranked HTS candidates with duty rates and evidence.

What duties will you owe?

The total duty on an import is the sum of multiple layers:

For products from China, the effective duty rate is often 30-50% when all layers are combined — far from "free" under the old de minimis regime.

The EU follows in July 2026

The EU will abolish its €150 de minimis duty exemption from July 1, 2026. With 4.6 billion low-value parcels processed annually (91% from China), this will create another massive wave of classification demand.

Timeline of de minimis changes