DE MINIMIS is a Latin term, which literally translates to “of the smallest”. In the context of international trade, it refers to a provision allowing shipments below a specified value to be imported duty free and with minimal or no documentation. Many countries have this provision, although with differing amounts, as it helps to streamline the customs process and save the regulator costs. Yes, it is subject to abuse. That is not new, but the regulator has provisions in place to identify suspect shipments.
The implementation of President Trump’s Executive Order which removes the de minimis exemption for goods valued at $800 or less imported into USA from China or Hong Kong is effective from 12.01am US Eastern Time on May 2, 2025. These goods will then incur a significantly increased duty rate, which as I understand it, will either be 120% ad valorem or a flat rate of $100, increasing to $200 after June 1, 2025, through the international postal network.
Other origins are subject to an ad valorem duty rate of either 30% of their value or $25 per item (increasing to $50 per item after June 1, 2025). This is in lieu of any other duties, including those imposed by prior Executive Orders.
Imports other than by post will be subject to standard duties, including those announced by President Trump under the International Emergency Economic Powers Act (IEEPA). Could this sometimes provide a potential cost advantage for some importers using postal services? (I didn’t tell you that)
Just to reiterate my past advice – sending foreign origin goods from Australia to US does not change their origin, no matter how long it’s been here or what your mate told you and no matter what you read where. (AU Post – please check your online advice. You are being probably misquoted at me)
Also, this is not professional advice. It’s an opinion piece. Don’t sue me. Like everyone else I’m getting too much information from social media and other networks with too much of it inflammatory in tone.
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