[1] Availabale in select markets in Southeast Asia.
From 29th August 2025, new customs rules take effect ending the de minimis exemption for low-value shipments. Packages worth less than US$800 will face the same duties and customs entry requirements as larger shipments. For ecommerce sellers and merchants targeting US consumers, these changes mark a major shift.
Previously, shipments valued under US$800 were exempt from duties and complex customs entry forms, allowing a streamlined, cost-effective way to serve US buyers. The de minimis exemption was designed for an era when low-value imported goods were rare and duty collection costs outweighed the tax revenue. As global ecommerce surged, foregone customs duties increased, prompting the exemption’s elimination. Now, all shipments, regardless of value, must clear US customs and pay the relevant duty starting August 29, 2025.
The new rules apply to most physical goods shipped to US consumers. However, personal correspondence, letters, standard documents, and other non-commercial shipments remain exempt—they do not require customs entry or duty payments. Merchandise, gifts over $100, products for sale, or promotional goods now require full customs declaration and payment of applicable duty, no matter the shipment’s value. Digital/download-only products are unaffected. When in doubt, check with your postal authority or US Customs and Border Protection for classification.
From August 29, US-bound packages will only be allowed entry if the correct duty is paid. Merchants using commercial couriers need to calculate, collect, and pay duties for each shipment and show US buyers the full landed cost—including duties—at checkout.
If Using the Postal Service
Transitional rules apply until February 28, 2026. Many postal operators lack tools to calculate US duty and will levy a temporary flat charge ($80, $160, or $200 per item, varying by country origin). Check with your national postal service. Some have suspended US-bound shipments during the transition.
If Using a Commercial Courier
Commercial couriers do not benefit from transitional rates and must collect duties by product category and origin. Many offer online duty calculators. Some carriers have also temporarily suspended US deliveries while updating compliance systems.
Duty Rate Calculation
Use the US International Trade Commission’s HTS tool (HTS) to find the relevant product code and base tariff. This will give you the code and the base tariff rate that applies, but there may be additional special tariffs (such as IEEPA tariffs) and other fees that apply.
External calculators also assist, such as:
It’s essential to show the true landed cost (including duty and taxes) to US shoppers at checkout. Major ecommerce platforms (Shopify, BigCommerce, WooCommerce) make this straightforward to set up using their integrated modules and plugins.
If your ecommerce platform has’s built-in options (such as Shopify, BigCommerce, WooCommerce) use them to display duties and taxes automatically. Supplement with external calculators for accuracy.
Ensure your regular postal or courier service accepts US-bound shipments. Transitional rules may apply for postal operators.
Know the percentage of US sales to gauge your exposure to new landed costs and their impact.
Simulate price changes using duty calculators and update product listings so customers can see the total they’ll pay.
Predict how higher costs might affect sales, conversion, returns, and margins using platform analytics.
Streamline logistics, lower operations expenses, and strengthen support. Use ecommerce platform analytics and automation to improve efficiency and compliance.
If US sales are likely to drop, evaluate opportunities in other English-speaking markets like Australia, UK, New Zealand, Canada or European, Latin American, Middle Eastern countries with cultural, shopping preference similarities.
Whether you need to maximise sales and streamline operations in the US or start building into other international markets, we can help.
Available in over 200 international markets, PayPal is the world’s most widely offered payment method, according to a 2022 Business Insider report. A 2023 survey also found that nearly two-thirds of users in the US and UK trust PayPal when purchasing from another country.
As always, at PayPal, customers are our first priority. PayPal continues to innovate and introduce solutions to support you at this pivotal change:
If you are new to PayPal, discover more about how we support global growth and compliance. PayPal stands behind merchants, helping you adapt, thrive, and serve more customers worldwide.
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