US Revokes $800 Tax Exemption, Imposes 10%-50% Import Duties

Starting from August 29, the United States will revoke a tax exemption policy that has allowed consumers to purchase goods valued at $800 or less without incurring import duties. This change will affect a wide range of products purchased through major e-commerce platforms such as Shein, Temu, and Amazon, as well as through various specialty stores and online marketplaces. The new policy will require consumers to pay import duties, either as a percentage of the declared value or as a fixed fee per package.

The revocation of the "de minimis exemption" policy means that packages valued at $800 or less will now be subject to import duties. These duties can range from 10% to 50% of the declared value or a fixed fee of $80 to $200 per package over the next six months. This change is expected to surprise many consumers who have grown accustomed to receiving international packages without additional costs.

The impact of this policy change will vary depending on the purchase channel, the type of goods, and the retailer's decision to absorb some or all of the additional costs. However, confusion among foreign postal services, private courier companies, and retailers may lead to delays and other issues. Consumers can take several steps to mitigate the impact of these new duties.

First, it is crucial to verify the country of origin for the products being purchased. This information may not always be readily available on the product page, so consumers should click through to detailed descriptions to find it. Knowing the country of origin allows consumers to estimate the import duties and check if the seller has included these costs in the final price.

Second, consumers should understand who will bear the cost of import duties. Retailers may offer "delivered duty paid" (DDP) or "delivered duty unpaid" (DDU) options. DDP means the seller will handle all import duties and paperwork, while DDU means the buyer will be responsible for these costs. Consumers should look for these terms on the checkout page or in the product description.

Third, consumers should check the fulfillment method for their orders. Purchasing from retailers that ship from domestic warehouses in the United States can help avoid import duties. Consumers can filter search results to show only items shipped from the U.S. or look for clear indications that the order will be prepared and shipped from within the country.

Upon arrival in the United States, packages will first go through a customs clearance center. Customs officials will verify the HS code, a global classification system used to determine the applicable import duties. Depending on the shipping method, consumers may need to pay these duties at the time of delivery or through a bill from the courier service.

If consumers encounter unexpected import fees, their options are limited. They can dispute the amount if they believe it is incorrect or refuse the package, though this may result in the loss of their purchase and any refunds. Retailers and courier services are encouraged to clearly communicate any additional costs to avoid customer dissatisfaction.

The revocation of the "de minimis exemption" policy is part of a broader effort to address the economic impact of international trade. While consumers may face higher costs for certain goods, the policy aims to level the playing field for domestic manufacturers and retailers. The change is expected to have a significant impact on the e-commerce industry, as retailers and consumers adapt to the new import duty requirements.