International packages could soon get more expensive

Shein hauls and Temu ads, prepare thyself for a change – it could soon get more expensive to ship low-value packages to America. The US Department of Homeland Security said on Friday that it’s going to be giving greater scrutiny to its de minimis exception, a trade rule designed to facilitate the flow of small packages that allows parcels valued under $800 to enter the US duty-free per person per day.

The minimis has been maximized

In 2023, over 1 billion de minimis packages came through US customs, up from 134 million packages in 2015.

• Two of the biggest drivers of this explosive growth? Retailers Shein and Temu, which together account for 30+% of all packages shipped to the US daily under the de minimis exemption.

A repeal could have a real impact on US pocketbooks… Eliminating the de minimis exception would add $20–$30 to each transaction, the Associated Press reports. This would make it difficult – read: financially impossible – for businesses like Shein and Temu to keep selling to US consumers at the same prices, and also impact costs for major shippers such as FedEx, UPS, Amazon, and DHL.

… but potentially a positive effect elsewhere. The National Council of Textile Organizations argues the de minimis exception hurts American businesses, and has led to the closure of multiple factories in the US. It could also be allowing a fair amount of illegal drugs like fentanyl, as well as goods made with forced labor (slavery), to enter the country illegally due to these packages receiving less scrutiny.