In 2025, both the United States and the European Union moved to dismantle long-standing de minimis exemptions that allowed low-value imports to enter without standard customs duties, taxes, and documentation. These parallel shifts are already creating operational challenges for carriers and small sellers, reshaping cross-border e-commerce flows, and raising questions about future alignment of international trade rules and postal conventions.
EU Developments
In November, EU Member States reached political agreement to remove the €150 de minimis exemption for low-value imports frequently used in cross-border e-commerce. The European Commission and Council have proposed a transitional approach: collection of customs duties on e-commerce parcels could begin as early as 2026, relying initially on a simplified, temporary calculation method. More comprehensive customs and data-reporting requirements will follow as part of the broader EU Customs Reform, including the planned EU Customs Data Hub slated for mid-2028.
The EU argues the de minimis exemption is no longer justified and has created unfair competition. The practice of shipping individual parcels below €150 has given major e-commerce platforms an advantage over traditional retailers that import in bulk and pay full customs duties. Removing the exemption is intended to level the competitive playing field.
The accelerated timeline appears influenced by the United States’ sudden elimination of its own de minimis threshold earlier in 2025, which sparked concerns that diverted e-commerce flows could surge toward the EU as the U.S. market became more restrictive.
U.S. Developments
The United States announced the removal of its de minimis exemption in mid-2025, with full implementation in August of that year. Although U.S. Customs and Border Protection (CBP) had been exploring reforms for years – including pilot programs dating back to 2019 and new rules proposed in January 2025 (read more here) – the expectation had been a gradual, phased approach to give industry time to adapt.
Instead, the abrupt elimination was met with surprise and chaos, creating operational disruptions. Companies had minimal notice to reconfigure compliance processes. Air carriers, for example, suddenly had additional responsibilities regarding customs declarations and duty collection, despite lacking both the data and processes in place to perform those functions.
Despite the rocky rollout, reinstatement of the exemption appears unlikely. Unlike tariffs that can be added, removed, or adjusted quickly, reversing the elimination of de minimis would be more complex. Moreover, CBP has long viewed the high volume of low-value e-commerce shipments with limited accompanying data as a challenge to effective risk management and a significant vulnerability to exploitation for illicit trade.
Potential Global Implications
Originally utilized as a tool to provide support to Small and Medium Enterprises (SMEs) and reduce the administrative burden on customs agencies processing minor transactions, the de minimis threshold has evolved into a loophole enabling large e-commerce platforms to avoid duties and data requirements. Its use as a trade facilitation tool is increasingly under scrutiny, and it may ultimately disappear from international guidance and best practices. Instead, we expect the conversation to continue to shift to data modernization.
We also expect that greater focus will be placed on international mail and postal conventions. As greater data requirements are set on e-commerce shipments, there may be pressure to update postal data-sharing rules and the Universal Postal Union (UPU) framework regarding cross-border packages and information exchange.
Learn More
If you’re interested in exploring this topic further, check out episode 4 of Customs & Cocktails, where co-hosts Andrew Farrelly and Shawn Beddows sit down with Gordon Wright to dive into the topic of de minimis – both the fallout from the U.S. removing its de minimis threshold and how the EU has been considering eliminating their threshold. They also unpack the Trust & Check program and other major changes on the horizon with the EU Customs reform.
With over 35 years of experience across border agencies and international transport associations, Gordon brings a wealth of insight into the conversation. He has led negotiations on cross-border security, customs regulations, cargo and mail supply chains, and international trade policy in the UK, EU, and beyond.
