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Home » De Minimis Phaseout Delivers $1 Billion in Recovered Import Revenue
Supply & Disruption

De Minimis Phaseout Delivers $1 Billion in Recovered Import Revenue

omc_adminBy omc_adminDecember 26, 2025No Comments2 Mins Read
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U.S. Customs and Border Protection says it has collected more than $1 billion in duties since the federal government began shutting down the de minimis loophole earlier this year.

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The revenue came from more than 246 million low-value shipments that previously entered the U.S. duty-free. The administration started phasing out the exemption in May 2025 and fully eliminated it worldwide on August 29.

CBP Commissioner Rodney S. Scott said the speed at which the agency hit the $1 billion mark shows how much money was being left on the table.

“Reaching the $1 billion milestone so quickly shows just how much revenue was slipping away under the old rules,” Scott said. “With this change, American businesses don’t have to compete with duty-free foreign goods, and CBP has stronger oversight of what comes into our country.”

The phaseout began on May 2, when low-value shipments from China and Hong Kong no longer qualified for duty-free entry. That change expanded globally at the end of August, fully eliminating the de minimis exemption and allowing CBP to collect duties on all low-value imports.

 

CBP said the policy shift has also improved enforcement. Since the exemption ended for China and Hong Kong, seizures of unsafe and non-compliant low-value goods have increased by 82%. Those seizures included counterfeit products, narcotics, faulty electronics, and items containing hazardous chemicals.

“With increased visibility into data for these low-value shipments, we’re better equipped to detect and disrupt criminal networks from smuggling drugs, counterfeits, and other illegal items—making our country safer,” said Susan S. Thomas, Acting Executive Assistant Commissioner for CBP’s Office of Trade.

Despite the tighter rules, the flow of packages into the U.S. continues to grow as importers adjust to the new requirements. CBP said the end of de minimis fits into a broader push to enforce trade rules, collect owed duties, and protect domestic manufacturers.



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