De minimis thresholds explained (and what changed)

What a de minimis threshold is

"De minimis" is short for de minimis non curat lex — "the law does not concern itself with trifles." In customs terms, a de minimis threshold is the shipment value below which a country waives import duty, import tax, or both, because the cost of assessing and collecting them would outweigh the revenue. It is the reason a $30 phone case from overseas has historically slipped through with no charge while a $3,000 pallet of inventory gets a full entry and a duty bill.

The threshold exists for pure administrative economics. Processing a formal customs entry — classifying the goods, valuing them, calculating duty, collecting tax — costs the customs authority and the importer real money. For a parcel worth a few dollars, that overhead can exceed the duty itself. So most countries set a floor, below which low-value consignments clear with minimal or no revenue collection.

Two things make this topic treacherous for importers. First, "de minimis" can refer to two different waivers that often sit at different values: a duty threshold and an import-tax (VAT/GST) threshold. A parcel can be under the tax floor but over the duty floor, or vice versa. Second — and this is the part that catches experienced importers off guard — these thresholds are among the most politically volatile numbers in trade. Governments move them to protect domestic retailers, capture VAT on e-commerce, or respond to tariff policy. Treat every figure below as "verify before you rely on it."

United States — the $800 de minimis is suspended

For years the headline US number was the Section 321 de minimis: shipments valued at US$800 or less could enter free of duty with a simplified clearance. That is no longer true.

Under Executive Order 14324, effective 29 August 2025, the $800 de minimis is suspended for all countries. As of 2026, US duty applies from the first dollar of value — there is no low-value safe harbor. A $40 item from any origin is now potentially dutiable, and that duty can include base HTS duty plus any stacked Section 301, 232, or IEEPA tariffs that apply to the product and country of origin. The statutory repeal of de minimis is currently scheduled to become permanent on 1 July 2027, so the suspension is not a temporary blip you can wait out.

Practical takeaway: do not tell yourself or a customer that goods under $800 ship into the US duty-free. That advice is now wrong and expensive. Price every US-bound shipment as dutiable and run the numbers — the US import duty calculator handles the duty base (the US uses an FOB/transaction-value basis, so international freight is excluded) plus the Merchandise Processing Fee and, on ocean freight, the Harbor Maintenance Fee.

Australia — a border threshold and a checkout GST rule

Australia runs two distinct mechanisms, and confusing them is the most common Australian import mistake.

At the border: consignments valued at AUD 1,000 or less generally clear with no duty and no GST collected at the frontier (alcohol and tobacco are the standing exceptions — they are taxed regardless of value). Above AUD 1,000, the goods need a formal import declaration, and duty plus 10% GST apply, along with the Import Processing Charge and biosecurity charges.

At checkout (LVIG): since 1 July 2018, the Low Value Imported Goods rule requires overseas sellers and online marketplaces that meet the registration turnover to collect 10% GST at the point of sale on consignments of AUD 1,000 or less. So the sub-AUD-1,000 parcel is not "GST-free" — the GST is simply collected by the seller at checkout instead of by Customs at the border. You pay it either way; only the collection point moves.

For the full mechanics of the GST base — Australia uses the VoTI, which adds international transport and insurance back even though those are excluded from the duty base — see the Australia GST on imports guide and run a real shipment through the Australia import duty calculator.

United Kingdom — GBP 135 flips VAT to the seller

The UK uses a GBP 135 consignment threshold. For goods valued at or below GBP 135, import VAT is generally not collected at the border — instead, the overseas seller (or the online marketplace facilitating the sale) charges UK VAT at the point of sale and remits it to HMRC. Above GBP 135, normal import VAT and any customs duty are assessed at importation in the usual way.

As in Australia's LVIG, the GBP 135 rule is not a tax exemption — it is a shift in who collects and when. The buyer still pays VAT on most low-value purchases; it is just baked into the checkout price rather than billed by the carrier on delivery.

European Union — the relief is shrinking

The EU has been steadily closing its low-value gaps:

The EUR 22 low-value VAT exemption was abolished on 1 July 2021. Import VAT now applies to commercial consignments from the first euro; the Import One-Stop Shop (IOSS) lets sellers collect VAT at checkout on consignments up to EUR 150.
The EUR 150 customs-duty relief — which currently lets consignments under EUR 150 enter without customs duty (VAT still applies) — is being removed as part of the EU's customs reform package, with changes expected around 2026. The exact timing and transitional rules are still settling, so verify the current position with the importing member state's customs authority before quoting a client.

These numbers move — verify with the authority

The pattern across every market is the same: governments are dismantling low-value duty and tax reliefs, partly to level the field for domestic retailers and partly to capture e-commerce VAT/GST. The US suspension, the EU's shrinking relief, and the seller-collected VAT/GST regimes in the UK and Australia all point the same direction — the era of "small parcels clear free" is ending.

Because these thresholds change on political timelines, not annual ones, never hard-code them into a pricing model and forget them. Confirm the current figure with the primary source before each significant shipment or repricing:

US: US Customs and Border Protection (CBP)
Australia: the Australian Border Force and the ATO (for LVIG/GST)
UK: HM Revenue & Customs (HMRC)
EU: the European Commission's customs pages and the destination member state's customs authority

For the wider picture of how duty, VAT/GST, and tariffs interact once a shipment is over the threshold, see import duty vs VAT/GST vs tariff and how to calculate landed cost, step by step.