Your E-commerce Packages from China and Hong Kong Are About to Get Costlier
U.S. cracks down on low-value imports; e-commerce businesses must rethink compliance as duty-free shipment rules undergo dramatic legal and policy reforms.
The United States is tightening the rules on small, low-value imports and tech companies and online retailers need to pay attention. A new Customs and Border Protection (CBP) guidance issued on 2 April 2025 outlines how Executive Order 14256 (and its amendments) will change the game for “de minimis” shipments (packages under $800).
Below, we break down what this means, why it’s happening, and how tech and e-commerce businesses should prepare in practical ways.
Why Low-Value Shipments Are Under Scrutiny
For years, the U.S. has allowed imports valued at $800 or less to enter without duties or extensive customs paperwork under the so-called de minimis rule (19 U.S.C. §1321). This threshold has been a boon for cross-border e-commerce, letting overseas sellers ship directly to U.S. customers with minimal friction.
However, it also created a loophole that illicit actors have exploited. U.S. officials found that Chinese suppliers were sending synthetic opioid ingredients and other contraband in many small-value parcels to avoid detection. These inconspicuous shipments – often just a few hundred dollars’ worth of goods or less – play a significant role in the ongoing synthetic opioid crisis in the United States.
To combat this, the President issued Executive Order 14256 on April 2, 2025, building on earlier orders targeting the synthetic opioid supply chain. The order squarely addresses low-value imports tied to fentanyl and other synthetic opioids. In plain terms, it closes the de minimis loophole for certain shipments originating from the People’s Republic of China (PRC) and Hong Kong.
Specifically, any goods from China or Hong Kong that fall within categories linked to the opioid supply chain can no longer piggyback on the $800 duty-free exemption. The White House explicitly directed that “duty-free de minimis” shall no longer be available for such products from the PRC (including Hong Kong).
This crackdown is unprecedented in the U.S., it’s the first time America has selectively yanked the de minimis privilege for a specific country and sector. It comes after mounting criticism that the de minimis regime gave an unfair advantage to Chinese e-commerce exporters and enabled a flood of uninspected packages.
Critics pointed out that minimal documentation and inspection on de minimis parcels made it easy for counterfeit or unsafe goods to slip through. The opioid crisis provided the impetus to act swiftly. Illicit drug networks have been hiding precursor chemicals, fake pills, and lab equipment in small parcels, relying on the high volume of duty-free packages to avoid scrutiny.
Notably, the government attempted a fast implementation of these restrictions in early February 2025 and the consequences were immediate. With little warning, tens of thousands of Chinese parcels were suddenly deemed ineligible for de minimis entry.