U.S. Ends De Minimis Exemption (GHY eBiz Added as a Qualified Party)
Published July 30, 2025 | Updated Feb. 10, 2026
Key Points
- Effective August 29, 2025, the U.S. has suspended the de minimis exemption under 19 U.S.C. 1321(a)(2)(C) for most imports.
- All low-value shipments, regardless of origin, transportation mode, or entry method, except international postal shipments, are now subject to duties, taxes, and fees.
- CBP Guidance Available: Payment of Duty on International Mail Shipments pursuant to Executive Order 14324 "Suspending Duty-Free De Minimis Treatment for All Countries"
- CBP shared updated FAQs on international shipments and Executive Order 14324, as of August 25, 2025.
- Qualified parties are regularly updated to collect and remit duties for international mail, with GHY eBiz added to the approved list in January 2026.
The U.S. has already ended its longstanding de minimis duty exemption for most low-value imports, effective August 29, 2025, citing national security concerns and the need for more effective tariff collection.
This major policy change, formalized in a presidential executive order, removes the exemption that previously allowed goods valued under $800 to enter the U.S. free of duties and formal customs entry procedures. Moving forward, nearly all such shipments will face full tariff treatment.
Latest Update: CBP regularly updates its list of qualified parties authorized to collect and remit duties for international mail shipments. In the January 14, 2026 update, CBP added GHY eBiz, later featured in a Supply Chain Dive article. GHY eBiz provides an integrated eCommerce solution combining logistics, customs brokerage, and technology to support compliant, cost-efficient clearance of low-value and small parcel shipments into the United States and Canada.
What’s Changing Under the EO 14324?
- De minimis treatment is suspended (Aug. 29) for all non-postal shipments, regardless of value, country of origin, or shipping method.
- International postal shipments – duties must be paid by the international mail carrier or by a CBP-certified qualified party acting in lieu of the carrier.
- Non-postal shipments: All shipments, even those valued under $800, must now be formally entered in ACE by an authorized filer.
Changes in ACE
The U.S. Customs and Border Protection (CBP) confirms in an official guidance, issued a few hours before the implementation, that it has made changes to the ACE to enforce the suspension.
- ACE will reject all Section 321 manifest filings submitted via electronic data interchange (EDI).
- The option to file Section 321 manifests in the Truck Manifest Trade Portal has been removed.
- ACE will reject all entry type 86 cargo release EDI transactions.
Importers and carriers must now use the appropriate formal or informal entries in ACE for shipments previously eligible for de minimis treatment.
Additional guidance for manifest and cargo release procedures will be released soon on CBP’s ACE CATAIR webpage.
Postal Shipments & Qualified Parties
The order carves out a temporary exception for international postal shipments (e.g., those carried by foreign postal services). For these shipments, no entry will be prepared until CBP establishes a new process published in the Federal Register.
In the meantime, duties will now be collected through carrier-based remittance mechanisms using one of two methodologies:
Ad Valorem Tariff (Default by February 2026):
- Duties will be calculated based on the IEEPA tariff rate of the country of origin.
Flat-Rate Tariff (6-month option):
- $80 per item for countries with an IEEPA tariff < 16%
- $160 per item for countries with an IEEPA tariff between 16–25%
- $200 per item for countries with an IEEPA tariff > 25%
Carriers must choose one methodology and apply it consistently during each calendar month. They must also report country-of-origin data for every postal shipment.
Qualified Parties (As of January 2026)
Additional qualified parties have been added to collect and remit duties for international mail. Refer to CBP’s E-Commerce webpage – ‘Approved Qualified Parties’.
Any party wishing to be certified as a qualified party should follow the process outlined in this guidance which includes submitting a CBP Form 5106 to CBP, obtaining a bond, and other requirements. If a party already has a CBP Form 5106 on file and an active bond, and wishes to be qualified, please email CBP at CBPDM@cbp.dhs.gov. Only parties listed via CSMS message or on CBP.gov are considered qualified third parties under Executive Order 14324.
Access guidance / detailed instructions for transportation carriers to comply with the requirements for international mail:
New Entry and Bond Requirements
To support enforcement:
- CBP will require informal entries for all non-postal low-value shipments via ACE.
- Importers and carriers will be required to post basic importation and entry bonds (per 19 C.F.R. 113.62) even for shipments under $2,500.
- Carriers transporting postal shipments must post international carrier bonds (per 19 C.F.R. 113.64) to ensure duty payment.
Implications for Trade, Retail, and Logistics
Retailers, marketplaces, and logistics providers that rely heavily on de minimis to deliver duty-free e-commerce goods to U.S. consumers will be most affected. Many currently ship under $800 orders directly from warehouses in China, Canada, or Mexico to U.S. buyers without paying duties.
With the exemption gone, businesses must prepare to:
- File customs entries for every low-value import.
- Reassess sourcing strategies that rely on de minimis arbitrage.
- Educate international sellers and logistics partners on new obligations.
- Update shipping platforms to calculate and collect applicable duties.
Global Guidance for International Mail
As of September 22, 2025, CBP has updated its Global Guidance for International Mail guidance to clarify operational requirements for carriers and qualified parties handling international mail shipments under Executive Order 14324.
Key highlights include:
- Mandatory use of a new Pay.gov International Mail Duty worksheet for monthly duty reporting and payment by the 7th business day after the entry month.
- Qualified parties carry full liability for duty collection, reporting, and enforcement actions; carriers must maintain required bonds as well.
- Consistent application of a single duty calculation method (ad valorem or specific duty) per remittance period; method changes require 24-hour advance CBP notification.
- Discontinuation of CBP informal entry preparation for covered shipments; formal entry remains necessary for shipments over $2,500.
- Interest and enforcement consequences apply for late or non-payment of duties.
Why Now?
The White House cited four national emergencies as the legal basis for the move:
- Drug trafficking from Canada and Mexico, especially fentanyl and precursors.
- Synthetic opioid supply chains from China and Hong Kong.
- Systematic abuse of de minimis to evade tariffs, particularly through fraudulent shipping and mislabeling.
- Large and persistent U.S. trade deficits driven in part by duty-free low-value imports.
The administration has now received confirmation from the Secretary of Commerce that U.S. systems are equipped to collect duties effectively on a global basis—even for high-volume, low-value shipments.
What’s Next?
CBP will publish further implementation/guidance and HTSUS details in the Federal Register and via CSMS Messages. Businesses should review their bond coverage, ACE access, and broker relationships to ensure compliance with the new requirements.
FAQs (Updated as of Aug. 25, 2025)
The following frequently asked questions reflect the latest guidance recently shared by CBP on their website, updated as of August 25, 2025.
What is Executive Order 14324, and what does it change?
Starting August 29, 2025, Executive Order 14324 ends duty-free treatment for low-value shipments from all countries. Shipments valued at $800 or less will no longer qualify for duty-free de minimis treatment under 19 U.S.C. §1321(a)(2)(C). These shipments will now be subject to standard customs requirements and applicable duties.
How are postal shipments and non-postal shipments treated differently?
Non-postal shipments must follow standard customs rules. They are subject to all applicable duties, taxes, and fees, and must be filed in the Automated Commercial Environment (ACE) by a party qualified to make entry, unless another entry type applies.
Postal shipments follow the International Emergency Economic Powers Act (IEEPA) tariffs. Duties can be calculated in two ways:
- Ad valorem duty: Based on the shipment’s value and the IEEPA tariff rate for the country of origin.
- Specific duty: A flat rate per item, ranging from $80 to $200, depending on the country of origin’s IEEPA tariff.
CBP does not prepare entries for postal shipments. Instead, the carrier or another qualified party remits the duties monthly.
Can carriers or qualified parties mix duty methods for international mail shipments?
No. From August 29, 2025, through February 28, 2026, carriers and other qualified parties must use the same duty collection method for all postal shipments during a duty remittance period. They may switch methods once per month, but must notify CBP at least 24 hours in advance. Starting February 28, 2026, carriers must use the ad valorem duty method exclusively.
Where can I find guidance on paying duties for international mail shipments?
Guidance is available in CSMS #65934463, which covers the payment of duties on international mail shipments under Executive Order 14324, “Suspending Duty-Free De Minimis Treatment for All Countries.”
What is CBP Form 5106?
CBP Form 5106, the “Create/Update Importer Identification Form,” registers entities that want to do business with CBP. Once processed, the entity receives an identification number, which may be an IRS Employer Identification Number (EIN), a Social Security Number (SSN), or a CBP-Assigned Number (CAN), according to 19 C.F.R. § 24.5(b)-(c). An entity can only start business with CBP and establish a bond after this form is processed and a CBP importer account is assigned.
How do you submit CBP Form 5106?
Qualified parties can access the form online here: CBP Form 5106 – Create/Update Importer Identity Form.
After completing the form, submit it via email to bondquestions@cbp.dhs.gov with the subject line: “New Bond IR#.” This email process applies only to qualified parties under Executive Order 14324. Carriers should continue managing transportation bonds using existing procedures.
CBP will review the submission and notify the qualified party once the importer account is created.
If I already have a CBP Form 5106 and a bond, am I automatically qualified to handle data and duty payments for international mail shipments under EO 14324?
No. Even with a CBP Form 5106 and the proper bond, a party must still confirm the ability to collect required data and submit duty payments via Pay.gov. Notification should be sent to cbpdm@cbp.dhs.gov. CBP will review and approve the party’s qualification to act as a third party.
How does a qualified party obtain a bond?
A CBP single transaction or continuous bond (CBP Form 301 or its electronic equivalent) can be obtained through a surety company. CBP does not recommend specific sureties, but you can find certified companies on the U.S. Department of the Treasury, Bureau of the Fiscal Service website. Sureties charge fees for their services, which are not controlled by CBP.
To get a bond, provide the surety with the CBP importer account number assigned when your CBP Form 5106 was processed. Ensuring the form is processed before working with a surety is essential.
Are letters and flats subject to duties?
No. Letters and flats (P and G format post items) that do not contain merchandise are not subject to duties.
Is military mail subject to tariffs under Executive Order 14324?
No. Shipments sent to the U.S. from U.S. military addresses abroad—such as APO, FPO, or DPO addresses—stay within the U.S. Postal Service’s domestic mail stream. Because they are not sent through the international postal network, these shipments are not subject to EO 14324 tariffs.
How GHY Can Help?
GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.
By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.
Contact Us Today! Booking a Meeting, email consult@ghy.com, or call +1 (800) 667-0771.
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