De minimis is a customs threshold below which imported goods are admitted into a country duty-free and with simplified clearance procedures. The US de minimis threshold was historically $800 USD for the value of a single shipment. Until 28 August 2025, any parcel valued at or below $800 entered the US without import duty and with minimal customs paperwork. From 29 August 2025, that exemption was suspended for parcels arriving outside official postal networks; from 28 February 2026 it ended for postal networks too.

When exactly did the changes happen?

Three key dates: (1) 29 August 2025 — Executive Order 14324 took effect, ending the $800 de minimis exemption for all non-postal-network shipments and introducing a simplified $80–$200 flat fee for postal-network shipments under the threshold. (2) 28 February 2026 — the simplified flat-fee regime ended; from this date forward, all postal-network shipments are also billed at full ad valorem duty. (3) 1 May 2026 — Royal Mail and Parcelforce increased their fuel surcharge from 11% to 16% (domestic) and 6.5% to 12% (international) reflecting global cost pressures.

US De Minimis Ended (2026) — UK Seller's Plain-English Guide

Q: Why did the US end de minimis?

Executive Order 14324 (29 August 2025), titled "Suspending Duty-Free De Minimis Treatment for All Countries," cited concerns about the rapid growth of low-value imports — particularly from large overseas marketplaces — undermining domestic manufacturing, US Customs and Border Protection enforcement capacity, and the collection of newly-imposed reciprocal tariffs. The change applies to all foreign origin countries, not just specific trade partners.

Q: Does de minimis ending affect Royal Mail parcels?

Yes. Royal Mail International services to the US are subject to the same post-de-minimis rules as any other carrier. From 29 August 2025 to 28 February 2026, postal-network parcels were charged a simplified flat fee of $80–$200 per shipment. From 28 February 2026 onwards, they are billed at full ad valorem duty — meaning a percentage of declared value, calculated per shipment by HS code. UK sellers who used to ship Royal Mail Tracked to the US duty-free can no longer do so.

Q: What is ad valorem duty?

Ad valorem duty is import tax calculated as a percentage of a parcel's declared value. The percentage rate depends on the product's Harmonized Tariff Schedule (HTS) code — for example, 32% for some clothing items, 12.5% for certain leather goods, free (0%) for some books. Since the post-de-minimis regime took full effect in February 2026, every UK→US parcel now incurs ad valorem duty regardless of carrier. The minimum baseline is typically 10% (the EO 14324 reciprocal tariff floor for UK-origin goods).

Q: What should UK sellers do now?

Switch to a Delivered Duty Paid (DDP) shipping service. With DDP, the duty is calculated and pre-paid at the time of shipping, so the American buyer receives the parcel without any unexpected fees at the door. The two main DDP options for UK sellers are Royal Mail International PDDP (typically £19–£24 all-in) and UPS Worldwide Economy DDP (typically £16–£20 via TradeWind, often cheaper). The right choice depends on weight, dimensions, and required transit time.

Q: Is there any way to avoid US import duty?

No, not legally. Under-declaring the value of a parcel to lower the duty is customs fraud and can result in seizure, fines, and criminal liability. The right approach is to use a DDP service that pre-pays the correct duty at checkout, factor that cost into your retail pricing, and be transparent with the buyer about the all-in landed cost. Some products with low duty rates (e.g. books, certain handicrafts) face minimal impact; some categories (apparel, footwear) face material costs that need to be priced in.

Short version, May 2026: if a UK→US parcel doesn't ship DDP (duty pre-paid), 15–35% of American buyers refuse it at the door once they're handed a $5–15 USPS brokerage fee plus the duty itself. UPS Worldwide Economy DDP via TradeWind (£12.80–£78 all-in) beats Royal Mail International PDDP (£19–£24 all-in) for most ecommerce parcels. The longer version below explains how we got here.

$800 → $0

Duty-free threshold

29 Aug 2025

EO 14324 in effect

10%

Baseline tariff floor

100%

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Before 29 August 2025: the duty-free era

Any UK→US parcel valued at £0–$800 USD cleared US customs automatically, duty-free, with minimal paperwork. A £40 cotton t-shirt cost you £8–10 in carriage and nothing else; the buyer paid nothing at the door. It was simple. It also meant the US government collected zero import duty on millions of parcels from low-cost sellers, which drove the policy change.

What changed and when

29 August 2025 — Executive Order 14324

Executive Order 14324, titled "Suspending Duty-Free De Minimis Treatment for All Countries," was signed on 30 July 2025 and took effect on 29 August 2025. It suspended the $800 duty-free threshold (Section 321 of the Tariff Act of 1930) for parcels arriving in the US through commercial carriers (UPS, FedEx, DHL, etc.). For postal-network shipments (Royal Mail / USPS / La Poste), it introduced a simplified flat-fee regime: parcels below $800 paid either $80, $160, or $200 per shipment depending on the country-of-origin tariff bracket.

For UK sellers, the practical effect was immediate: every UPS, FedEx, or DHL parcel to the US suddenly required formal customs entry and ad valorem duty calculation. Royal Mail kept the simplified flat-fee path open, but UK-origin shipments were billed $80 per parcel — far above the previous duty-free position.

28 February 2026 — flat fees end

The simplified flat-fee regime for postal-network parcels expired on 28 February 2026. From that date forward, every parcel into the US — postal or commercial — must clear customs with full ad valorem duty calculated by HS code. The $80 per-Royal-Mail-parcel flat fee that gave UK sellers some predictability through autumn and winter 2025 is gone.

May 2026 — Royal Mail fuel surcharge increase

From 3 May 2026, Royal Mail's Fuel and Energy Surcharge increased from 11% to 16% on domestic services and from 6.5% to 12% on international. Parcelforce Worldwide's surcharge rose from 8% to 13%. These changes — driven by global oil-price instability — further erode any cost advantage the UK postal network used to have over commercial carriers like UPS.

What this means for UK sellers in practice

Pre-de-minimis (spring 2025): £40 cotton t-shirt via Royal Mail Tracked 48 cost you £8.99 carrier fee, no duty (under $800 threshold). Buyer paid nothing at the door. Total seller cost: ~£9.

Post-de-minimis (May 2026), same parcel, three options:

Royal Mail International Tracked (non-DDP): £8.99 base + 12% fuel surcharge = £10.07. Buyer invoiced for ~£6.50 US import duty (16.5% of £40) + $5–15 USPS handling fee at the door. Parcel refusal rate: 20–30%. Seller refunds and return shipping costs often exceed original margin.
Royal Mail International PDDP (DDP): £19 all-in (includes 12% fuel + pre-paid duty). Buyer receives with zero door charge. Reliable. 5–7 working days.
UPS Worldwide Economy DDP via TradeWind (DDP): £12.8-£15.5 all-in (includes pre-paid duty from USITC HS code lookup). Free drop-off at UPS Access Point. 4–7 working days. Buyer pays zero at door.

For most parcels, the UPS WWE DDP option is now the cheapest and cleanest experience for both seller and buyer.

Why DDP is the only sensible choice now

There are three ways to handle US import duty on a UK→US parcel: pre-pay it at shipping (DDP — Delivered Duty Paid), let the buyer pay at the door (DDU — Delivered Duty Unpaid), or under-declare the value to dodge it (customs fraud, illegal).

DDU is increasingly impractical because:

USPS now charges a $5–15 brokerage/handling fee on every duty-paying parcel. Buyers see this on top of the duty itself and often refuse to pay.
Buyers who didn't expect the charge often blame the seller — bad reviews, refund requests, returns.
Refused parcels return to the UK at the seller's cost, often after weeks of customs storage.

Under-declaring is illegal and increasingly enforced. CBP has substantially expanded inspection of parcels post-EO 14324, and penalties scale with parcel volume. Don't.

DDP is the only option that's both legal and provides a clean buyer experience. The only question is which DDP service to use.

Choosing your DDP shipping option

The two main DDP options for UK sellers shipping to the US:

Royal Mail International PDDP

Royal Mail's "Parcels Delivered Duty Paid" service, accessible directly through Royal Mail Click & Drop or via the Post Office counter. Currently priced at £13.50 (0–1kg) and £17.50 (1–2kg) reseller rates, plus 12% international fuel and pre-paid duty. Tracked end-to-end. Drop off at a Post Office.

Pros: Familiar to UK sellers. Many people already have a Click & Drop account.
Cons: Limited weight range (up to 2kg). Slower transit (5–7 working days). More expensive than UPS WWE DDP for most parcel sizes.

UPS Worldwide Economy DDP

UPS's economy international service with all duty pre-paid. Available to UK sellers via TradeWind (no UPS contract required) at reseller rates. Currently from ~£13 for small parcels, scaling to ~£101 for 30kg. Drop off at any UPS Access Point shop.

Pros: Almost always cheaper than Royal Mail PDDP. Wider weight range (up to 30kg). Better tracking integration. Cleaner customs paperwork (UPS handles the import-of-record process).
Cons: Drop-off only (no collection in the entry-level service). Comparable transit to Royal Mail (4–7 working days).

How TradeWind handles post-de-minimis DDP

TradeWind resells UPS Worldwide Economy DDP labels to UK sellers. No UPS contract, no monthly fee. Quote, pay (card/Apple Pay/Google Pay/PayPal), print, drop at any UPS Access Point (5,000+ UK locations). We automate:

HS code & duty lookup: Contents description matched to USITC Harmonized Tariff Schedule. Duty calculated as percentage of declared value + 10% reciprocal tariff floor. Locked in before payment.
Customs paperwork: Commercial invoice and CBP customs declaration generated from inputs. Attached to parcel in clear pouch.
Customs entry: UPS files formal entry with US Customs electronically before parcel reaches US border. Pre-paid duty status clears parcel to final-mile network (USPS/UPS) without buyer intervention.
Tracking & alerts: Public tracking page at tradewind.express/track/[ID]. Email alerts at dispatch, customs clearance, delivery.

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Frequently asked questions

What is de minimis?

De minimis is a customs threshold below which imported goods are admitted duty-free with simplified clearance. The US threshold was $800 USD per shipment until 28 August 2025.

Why did the US end de minimis?

Executive Order 14324 cited concerns about low-value imports undermining domestic manufacturing, CBP enforcement capacity, and the collection of newly-imposed reciprocal tariffs. The change applies universally — not just to specific trade partners.

Does de minimis ending affect Royal Mail parcels?

Yes. From 28 February 2026, Royal Mail International services to the US are billed full ad valorem duty per shipment. There's no postal-network exemption.

What is ad valorem duty?

Import tax calculated as a percentage of the parcel's declared value. The exact percentage depends on the product's HTS code. Baseline is 10% for UK-origin goods (the EO 14324 reciprocal tariff floor); some categories (apparel, footwear) carry materially higher rates.

What should UK sellers do now?

Switch to a DDP shipping service. The two main options are Royal Mail International PDDP and UPS Worldwide Economy DDP (the latter typically cheaper, especially via TradeWind).

Is there any way to avoid US import duty?

No, not legally. Under-declaring is customs fraud. The right answer is to use a DDP service, factor duty into your retail pricing, and be transparent with the buyer about the all-in landed cost.

Sources

This article is provided for general guidance to UK ecommerce sellers. It is not legal or tax advice. Rates and rules change; verify current rates with the linked primary sources before making business decisions.