Customs Information

US customs clearance changed fundamentally for every shipper in 2025. This guide explains the current rules and what to expect when your parcel reaches US Customs and Border Protection (CBP).

The de-minimis exemption is gone

Previously, shipments valued under $800 entered the US duty-free with minimal formality under the "Section 321 de minimis" rule. That exemption was suspended for China and Hong Kong from 2 May 2025, then extended to all countries from 29 August 2025 — confirmed as continuing through 2026 by a further executive order, with CBP formally closing both the non-postal and postal channels effective 24 June 2026. The exemption's statutory termination under the One Big Beautiful Bill Act is scheduled for 1 July 2027, permanently ending it regardless of any future executive order.

What this means in practice: every parcel entering the US from India — regardless of declared value — now goes through formal duty assessment. There is no more "keep it under $800 and skip customs."

How duty is assessed

CBP assesses duty based on the product's declared value and its HS (Harmonized System) tariff classification — different product categories carry different duty rates, so there is no single flat percentage that applies across all goods. The exact rate depends on what you're shipping.

DDP vs. DDU: who pays, and when

• DDP (Delivered Duty Paid): duty is collected upfront from the shipper/seller, and the recipient receives the parcel with nothing further to pay. This is the smoother experience for the recipient and worth prioritising for ecommerce sellers.
• DDU/DAP (Delivered at Place, duty unpaid): duty is collected from the recipient at or before delivery. If the recipient isn't prepared for this, it's a common cause of delayed or refused deliveries.

What can trigger extra scrutiny

• A declared value that seems inconsistent with the described goods
• A vague or generic goods description
• Products in categories CBP reviews more closely (see Restricted or Prohibited Items (USA))
• Missing or unreachable recipient contact information

Practical takeaway

Budget duty into your pricing (or your recipient's expectations) for every US shipment, choose DDP where available if you're an ecommerce seller shipping to end customers, and make sure your commercial invoice and shipping bill are consistent and specific — this is now the difference between a routine clearance and a held shipment on every single parcel, not just the higher-value ones.