De Minimis
Category: trade
The value threshold below which imports enter duty-free (e.g. $800 in the US).
De minimis is the threshold below which imported goods enter a country duty-free and/or tax-free, designed to simplify customs processing for low-value shipments. Thresholds vary significantly: the US has an $800 de minimis threshold, the EU removed its €150 import VAT exemption (but IOSS allows pre-payment), Australia has AUD 1,000 for customs duty, and many developing countries have much lower thresholds.
Examples
- • A seller shipping $500 worth of accessories to the US consumer benefits from the $800 de minimis threshold — no customs duty or import tax is due.
- • Shipments to the EU valued over €150 are subject to import VAT; sellers using IOSS can pre-pay VAT for goods valued at €150 or below.
- • China and many Asian countries have very low de minimis thresholds (e.g., China at RMB 50 for postal items), meaning most e-commerce imports face duties.