Key Dates

• August 29, 2025: The global suspension of the de minimis exemption takes effect.
• 6-Month Grace Period (for postal shipments): International postal shipments will have a temporary grace period, using simplified, flat-rate tariffs based on the country of origin.
• July 1, 2027: The One Big Beautiful Bill Act (OBBBA) permanently repeals the de minimis exemption.

Checklist for Businesses Affected by the De Minimis Changes

To prepare for the new regulations, we've created a checklist to help your business stay compliant and competitive.

1. Understand the Financial Impact

• Review Your Pricing Strategy:
  • Calculate the new landed cost for your products, factoring in applicable tariffs and taxes.
  • Assess if you need to adjust your retail prices to maintain profit margins.
  • Consider transparent pricing that shows the customer the full landed cost at checkout
• Analyze Your Product Categories and Origins:
  • Determine which of your products will be most affected by the new tariffs based on their category (e.g., apparel, electronics) and country of origin.
  • The new tariffs can be substantial, with rates varying widely. For example:

A $45 skincare serum from South Korea could see a 15% tariff.

A $95 pair of running shoes from Vietnam could face a 34% tariff.

2. Adjust Your Logistics and Fulfillment Strategy

• Re-evaluate Your Shipping Model:
  • For low-value shipments, cross-border shipping will become more complex and costly.
  • Consider a U.S. fulfillment strategy. By importing goods in bulk, you can clear customs once and then ship domestically, avoiding the new per-shipment tariffs and ensuring faster delivery times.
• Prepare for New Customs Processes:
  • All shipments, regardless of value, will now require formal customs entry.
  • Ensure your carriers have valid international carrier bonds.
  • Work with a customs broker or a logistics partner, like Woodland Group, who can help you manage the complex entry filing process.

3. Ensure Documentation and Compliance

• Update Your Documentation:
  • Each shipment must be filed using the Automated Commercial Environment (ACE) system.
  • Ensure all documentation, including commercial invoices, is accurate and complete.
  • Accurately declare the country of origin for all products.
• Avoid Penalties:
  • The U.S. government is cracking down on attempts to evade tariffs.
  • Be aware of the penalties for non-compliance, which can include fines of up to $5,000 for the first offense and $10,000 for each repeat offense.

4. Leveraging Strategic Shipping Solutions with Woodland Group

The end of the de minimis exemption means per-parcel costs will rise. A key strategy for e-commerce businesses is to shift from individual, direct-to-consumer parcel shipping to bulk air and ocean freight. By consolidating multiple orders into a single shipment via cargo carriers, you can significantly reduce your per-parcel cost. This approach lowers not only freight expenses but also 3PL receiving and customs clearance costs on a per-unit basis.

Woodland Group can help you make this strategic shift seamlessly. Our e-commerce fulfillment and logistics solutions include:

• Strategically Located U.S. Warehouses: Our own warehouses in Illinois and New Jersey are perfectly positioned to receive bulk air and ocean freight. From these hubs, we provide efficient pick-and-pack services for last-mile delivery to your U.S. customers.
• In-House Customs Brokerage: Our dedicated team of licensed customs brokers will manage all the complex customs clearance paperwork and formal entries for your bulk shipments, ensuring compliance and preventing delays.
• Global Tracking and Visibility: Our powerful online tools provide full, end-to-end visibility of your shipments, from the moment they leave their origin to the final delivery to your customer's door.

Ready to Adapt to the New Rules?

Don't let the end of the de minimis exemption disrupt your business. The best way to navigate these changes is to prepare now with a partner who understands the new regulations.