On August 13, the U.S. Court of International Trade ruled that the Trump administration's decision to eliminate the de minimis exemption for packages under $800 was legal, dismissing importer Detroit Axle's lawsuit seeking to reinstate the exemption. In short: this policy will not be reversed because of this lawsuit; low-value packages from China to the U.S. will continue to be declared and taxed according to the current rules.
Let's start with the parts directly related to shipping costs. For courier/commercial channels, regardless of the value of the goods, they are declared according to the HS code and normal customs rules. The $800 tax-free threshold no longer exists—previously, small samples declared at $200 could be released tax-free, but now tax is calculated from the first dollar. Postal channels use a separate set of taxation rules set by the White House, which is different from the courier/commercial channels; it's taxed based on the package's classification level.
There's another point that's easily confused: this ruling won't result in tax refunds. Earlier this year, the Supreme Court ruled that the "reciprocal tariffs" were illegal, and FedEx began refunding approximately $800 million to customers this month. Many people assumed this was the same thing and would result in a similar refund. That's not the case. That refund was for a different matter. The de minimis cancellation was a separate executive decision, and the court made it very clear this time: canceling an existing tax exemption is not the same as arbitrarily imposing a new tariff. The former is something the president has the authority to do; the latter is what the Supreme Court overturned.
Let's go through the timeline.
- February 1, 2025: First attempt to cancel tax exemption for parcels from China/Hong Kong, but it was reinstated on February 7 due to USPS overload.
- May 2, 2025: Tax exemption for low-value parcels in mainland China and Hong Kong officially cancelled.
- August 29, 2025: The scope is expanded globally, and tax exemptions for packages under $800 in all countries will be eliminated.
- August 13, 2026: The Trade Court ruled the cancellation action legal; the plaintiff lost the case.
U.S. Customs and Border Protection (CBP) collected over $1 billion in additional revenue in 2025 alone by eliminating de minimis. According to the current administrative plan, this temporary rule will likely be replaced by a stricter, formal system in July 2027; the tax exemption will not return, only become more stringent.
What does this mean for shipping costs?
Previously, a sample or small order worth $300 could be processed under the $800 duty-free allowance, resulting in virtually no customs duties upon arrival. Now, such goods are subject to tax according to the corresponding HS code, the specific amount of which depends on the product category—the overall tax rate varies greatly among different commodities. It is recommended to verify the HS code accurately before shipping, and avoid relying on the old experience of "previously being duty-free" to estimate costs, as this can easily lead to incorrect pricing.
The more accurate the product name is, the more accurate the tax calculation will be, and the less likely it will be blocked by customs during secondary inspection. Avoid writing vague product names such as "sample" or "accessory". Clearly state the material and purpose, such as "carbide drill bit, 83.5% tungsten + 10% cobalt + 6% carbon, for CNC machine tool metal processing". This will make customs clearance much smoother.
You can check the shipping and surcharge information directly. CZL shipping cost inquiry Verify the final price; for remote addresses... Remote address search Confirm in advance whether there will be additional remote area fees, and observe the trend of fuel surcharges. Fuel surcharge comparison(Note that fuel costs are priced separately for each market of origin. The table for Chinese exports often shows opposite trends to the table for US domestic exports. It is easy to miscalculate costs if you misread the table.)