𝗦𝗵𝗶𝗽 𝗝𝘂𝘀𝘁 𝗚𝗼𝘁 𝗥𝗲𝗮𝗹™: 𝗗𝗲 𝗠𝗶𝗻𝗶𝗺𝗶𝘀 𝗘𝗻𝗱𝘀 𝗳𝗼𝗿 𝗖𝗵𝗶𝗻𝗮 & 𝗛𝗼𝗻𝗴 𝗞𝗼𝗻𝗴

Big changes are coming to the world of cross-border eCommerce, and if you’re importing goods from China or Hong Kong, it’s time to take notice.

Starting May 2, 2025, a new Executive Order will officially remove the $800 duty-free de minimis threshold for all goods originating from China and Hong Kong. That means items shipped from these regions will no longer enjoy the tariff-free status that many eCommerce businesses have relied on for fast, cost-effective fulfillment.

This isn’t just a regulatory update—it’s a seismic shift that could have a major impact on your bottom line. At P2P, we give a ship™, and we’re here to help you make sense of it all and stay ahead of the curve.

What’s Changing?

The de minimis provision has long allowed low-value shipments (under $800 USD) to enter the U.S. without duty or formal customs clearance. It’s been a major cost-saver for businesses importing direct-to-consumer goods from overseas.

But under the new order:

Goods from China and Hong Kong will no longer qualify for de minimis exemption.

This applies regardless of the shipment’s value.

The change is aimed at closing trade loopholes and protecting domestic manufacturing—but it comes at a cost for many retailers and fulfillment strategies.

Key Impacts for Importers & Retailers

Here’s what businesses need to plan for:

✅ De Minimis Ends
Effective May 2, all goods originating from China or Hong Kong will be subject to duties—no more $800 exemption.

✅ Commercial Clearance = Country of Origin
For commercial imports, customs clearance will depend on the Country of Origin, not the shipping location. If your product is made in China, this rule applies—even if shipped from a different country.

✅ Postal Clearance: Still Unclear
For goods entering through postal channels (vs. commercial), the ruling may apply based on the Country of Export instead. Clarification from customs is expected, but for now, it’s a grey area.

✅ New Tariff Structure
Expect a combination of:
– Standard base duty
– Section 301 Tariffs (25% in many cases)
– Additional surcharges

✅ Increased Postal Duties
Postal shipments will now attract a duty of 30% of the item’s value or $25 per item—and that jumps to $50 per item starting June 1.

What Can You Do Now?

The countdown is on, but you’re not alone.

At P2P, we specialize in helping brands pivot quickly. Whether it’s finding alternate sourcing options, adjusting your warehouse strategy, or exploring new fulfillment channels—we know our ship™ and we’re ready to help you navigate the storm.

Stay prepared. Stay compliant. Stay competitive.
Let’s talk about how to adapt your cross-border strategy before May 2 hits.

Need guidance or storage solutions?

We’re ready when you are. Contact the P2P team to make a plan that works with your business—not against it.