End of the $800 De Minimis: What the August 29 Rule Change Means for Cross‑Border Shipping — and How to Prepare

The U.S. supply chain and cross-border e-commerce sectors are dealing with one of the biggest regulatory changes in recent memory as a result of President Trump's recent Executive Order.

The U.S. government eliminated the $800 de minimis exemption for products coming from China and Hong Kong on May 2, 2025. This change was initially intended to be implemented in all nations by August 1, 2027, as part of the One Big Beautiful Bill. The industry now has just 30 days to get ready for a new reality where all imports, regardless of value or origin, will be subject to duties and taxes after that timeline was advanced to August 29, 2025.

Why This Matters

-Every year, billions of packages—roughly 4 million packages every day—enter the United States.

- Type 86 entry, which permits items valued at $800 or less to enter duty-free with little clearance, is currently used for almost all low-value imports.

- This inexpensive import option will be removed on August 29 when Type 86 is phased out for all nations. Shippers run the risk of major cost increases and operational delays if they don't change their approach.

The New Clearance Landscape

After August 29, importers will need to choose between two main U.S. customs clearance types for most e‑commerce shipments:

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Key differences:

• Type 11 clears each parcel individually, which can be costly for high-volume shippers.

• Type 1 allows multiple parcels to clear under a single entry, lowering per-parcel clearance costs — but requires a customs bond.

Type 11 — How It Has Been Used

For shipments totaling $2,499 or less, Type 11 is an informal entry type. Chinese consolidators and other cross-border operators have been using it extensively because it simplifies processing for foreign sellers without a U.S. entity by requiring no customs bond and allowing parcels to be cleared individually. In the past, processing through broker or postal channels had low clearance costs.

Many Chinese consolidators used to ship consolidated loads to the United States, break them down at a U.S. port or bonded facility, clear each parcel under Type 11 at full retail value, and then inject parcels into domestic delivery networks. This was the old model.

Post–Aug 29 Changes:
- All parcels will incur duties and taxes.
- Per‑parcel clearance costs will increase, especially via express couriers (FedEx, UPS, DHL) at $80–$100 per parcel.
- While Type 11 remains available, it will be less cost‑effective for high‑volume imports compared to alternatives.

Type 1 — Best‑Use Scenarios

For shipments valued at more than $2,500 or for consolidated shipments entered as a single entry, Type 1 is a formal entry type. It works well for: - Bulk imports with several packages going to various clients (e.g., large e-commerce or marketplace orders) - Customs bonds are required.

- Shipments to a domestic partner or U.S. subsidiary serving as the Importer of Record.

-High-volume loads where it would be prohibitively expensive to clear each parcel under Type 11.

-Situations in which, if legal and compliant, a transfer value may be declared in lieu of the full retail value.

Advantages:
- One clearance fee for the entire consolidated load.
- Lower per‑parcel clearance cost compared to Type 11 or carrier clearance.
- Compatible with in‑air or pre‑arrival clearance to maintain transit speed.

How YouParcel Can Help You Adapt

At YouParcel, we are prepared to guide you through this new customs reality with solutions designed for compliance, cost efficiency, and operational speed. Leveraging our partnerships with licensed customs brokers, we can help you navigate the changes effectively through:

1. Cost‑Effective Clearance Options
We offer competitive pricing for both Type 1 and Type 11 clearances.
- Type 1 (Formal Entry): Ideal for consolidated or high‑volume imports. You pay a single clearance fee plus applicable duties and taxes, lowering per‑parcel costs dramatically.
- Type 11 (Informal Entry): Suitable for shipments valued at $2,499 or less per parcel, with significantly lower per‑parcel fees compared to major carriers.

2. Real‑Time Landed Cost Calculation
We are able to offer real-time duty and tax estimates by integrating our broker's API. This ensures transparency and avoids unforeseen delivery fees by enabling you to pre-collect these costs from customers at checkout.

3. Compliance‑Focused Import Strategies
We help you ensure that shipments meet CBP requirements and prevent delays by guiding you on the proper use of Types 1 and 11. We help high-volume shippers organize consolidated entries in a way that complies with customs laws.

4. Operational Speed
If the necessary shipment data is provided beforehand, both Type 1 and Type 11 clearances can be finished "in the air," much like the previous Type 86 procedure. This allows for quick clearance and few port delays.

5. Flexible Clearance Setups
We can coordinate with your current broker or facilitate clearance through our network to match the clearance process with your operational model, regardless of whether you are an established U.S. importer or an international seller.

How to Prepare in the Next 30 Days

1. Assess your shipment profile — volumes, values, and frequency.
2. Choose the right clearance type — Type 1 for high‑volume or consolidated shipments, Type 11 for smaller flows.
3. Ensure advance data readiness — complete shipment data is essential for pre‑clearance.
4. Review landed cost impact — incorporate duties/taxes into pricing to avoid margin erosion.
5. Coordinate with your logistics provider — ensure they have a compliant plan in place before August 29.

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Conclusion

The way low-value imports enter the United States will be drastically altered by the elimination of the $800 de minimis exemption. The best-positioned companies to preserve cost effectiveness and delivery speed will be those that adjust swiftly, choosing the best clearance strategy and making operational preparations.

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