Global CFS Update 2/7/25 President Trump has reinstated the de minimis exemption for Chinese imports—at least temporarily. The exemption, which allows duty-free entry for shipments valued under $800, was previously revoked as part of a broader tariff package. However, following significant industry pushback and concerns over customs processing delays, the administration has reinstated de minimis eligibility until the Department of Commerce determines that Customs’ systems can effectively process and collect tariff revenue on these shipments.
Under the revised rule, duty-free de minimis treatment will remain in place for qualifying imports from China, but will be revoked once the Secretary of Commerce notifies the President that CBP has the infrastructure in place to efficiently manage the processing and duty collection for these goods. This means that while importers have a temporary reprieve, the policy is subject to change once enforcement capabilities catch up. For logistics companies, the uncertainty surrounding de minimis underscores the need for strong contingency plans, bulk import strategies, and partnerships with freight service providers to navigate shifting trade policies.
The recent suspension of de minimis entry for Chinese imports has upended e-commerce supply chains, forcing a rapid shift in customs clearance and logistics strategies. Initially designed for low-value shipments, the de minimis program allowed packages under $800 to bypass standard customs entry requirements, enabling faster clearance with minimal oversight. However, with the surge in e-commerce shipments, U.S. Customs and Border Protection (CBP) faced growing challenges in monitoring intellectual property rights violations, illicit goods, and forced labor concerns. The sudden removal of de minimis for China means individual shipments now require formal or informal entry, duty collection, and customs brokerage oversight, creating immediate delays and disruptions.
The change came as part of a broader trade policy shift under the Trump administration, which initially threatened tariffs on Canada, Mexico, and China. While tariffs on Canada and Mexico were postponed for 30 days, the restrictions on Chinese imports—including the loss of de minimis privileges—are already in effect. E-commerce retailers and logistics providers are now dealing with an unprecedented influx of small-package shipments requiring full customs processing, stretching CBP’s capacity and slowing the flow of goods. The increase in customs entries means more demand for bonds, power of attorney documentation, and liquidation monitoring, all of which add complexity and cost to the supply chain.
With de minimis removed, industry experts anticipate a return to more traditional supply chain models. Instead of direct-to-consumer shipments from overseas, goods will likely be imported in bulk, processed through warehouses and distribution centers, and then shipped domestically. This shift may alleviate some customs bottlenecks but will require businesses to reassess their logistics strategies and compliance protocols. Global CFS is positioned to assist freight forwarders, customs brokers, and e-commerce businesses by offering transloading services, air, and ocean freight delivery, and distribution center support in the Chicago market.
The scale of this shift is staggering. CBP processed over four million de minimis shipments daily in 2023, totaling nearly one billion parcels for the year, with 88% arriving by air via international mail, express carriers, or passenger flights. The transition to full customs processing for these shipments introduces the challenge of handling an estimated 2.5 million additional formal entries per day, creating significant uncertainty about CBP’s capacity to manage the workload efficiently. While some Chinese e-commerce platforms anticipated this change due to pending legislation in Congress, the speed of implementation has caught many in the industry off guard.
As businesses navigate this new regulatory landscape, ensuring supply chain efficiency and compliance is more critical than ever. Global CFS provides the infrastructure and expertise to support this transition, helping companies move shipments efficiently while adapting to new trade requirements. If these changes impact your business and you need solutions for transloading, warehousing, or last-mile distribution, contact Global CFS today to discuss how we can keep your supply chain moving.
“The sudden removal of the de minimis exemption is a game-changer for logistics. What was once a seamless flow of low-value goods is now a bottleneck of customs delays, added costs, and compliance hurdles. For logistics companies, this means a shift back to bulk imports, consolidation strategies, and increased reliance on container freight services to keep goods moving efficiently.”
-Steve Panzarella, President, Global CFS
The loss of de minimis for Chinese imports changes how e-commerce shipments move through U.S. ports and customs. Global CFS can assist customs brokers and freight forwarders with the delivery of air and ocean freight to their warehouses or provide transloading services and delivery to distribution centers in and out of the Chicago market Contact Global CFS today to discuss how our warehousing options and transloading and distribution services can support your business through this transition.
