CBP Collects $1 Billion in Duties After Ending De Minimis Loophole
Summary
U.S. Customs and Border Protection announced it has collected over $1 billion in duties on low-cost shipments since phasing out the de minimis loophole starting in May 2025. This action strengthens economic and national security by increasing oversight and preventing duty-free entry for goods from China and Hong Kong.
What changed
U.S. Customs and Border Protection (CBP) has collected over $1 billion in duties on more than 246 million low-cost shipments since the administration began phasing out the de minimis loophole in May 2025. The loophole's elimination, fully implemented worldwide by August 29, 2025, means that low-value shipments from China and Hong Kong are no longer eligible for duty-free entry, allowing CBP to collect significant revenue and enhance oversight of incoming goods. This change has also led to an 82% increase in CBP seizures of unsafe and non-compliant low-value goods, including counterfeits, narcotics, and hazardous items.
This development signifies a substantial shift in trade policy, impacting importers and exporters who previously relied on the de minimis exemption for duty-free entry of low-value goods. Businesses must now account for applicable duties on these shipments. The increased enforcement also means a higher likelihood of detection for illicit goods, enhancing national security and protecting American consumers and domestic industries from unfair competition. Regulated entities should review CBP's guidance on de minimis policies and ensure compliance with updated duty collection requirements.
What to do next
- Review CBP's updated de minimis policies and guidance.
- Ensure accounting for applicable duties on low-value shipments previously exempt.
- Assess supply chain impacts and adjust import strategies accordingly.
Penalties
Seizures of unsafe and non-compliant low-value goods have increased by 82%.
Source document (simplified)
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CBP collects $1 billion since end of de minimis loophole
Release Date Wed, 12/17/2025 New oversight of low-value packages strengthens U.S. economic and national security
WASHINGTON — U.S. Customs and Border Protection collected over $1 billion in duties on over 246 million low-cost shipments since the administration began phasing out the de minimis loophole in May 2025, recovering a record amount of revenue that had previously gone uncollected.
“Reaching the $1 billion milestone so quickly shows just how much revenue was slipping away under the old rules,” said CBP Commissioner Rodney S. Scott. “With this change, American businesses don’t have to compete with duty-free foreign goods, and CBP has stronger oversight of what comes into our country.”
The administration began the phaseout of the de minimis loophole on May 2, 2025, when low-value shipments from China and Hong Kong were no longer eligible for duty-free entry. CBP fully implemented the change worldwide on August 29, 2025, with the elimination of the de minimis exemption. CBP is now able to collect significant revenue, fully vetting shipments, and stop dangerous and illegal goods from reaching the American consumer.
Since de minimis ended for China and Hong Kong, CBP seizures of unsafe and non-compliant low-value goods have increased by 82%. These included counterfeits, narcotics, faulty electronics, and goods containing hazardous chemicals.
“With increased visibility into data for these low-value shipments, we’re better equipped to detect and disrupt criminal networks from smuggling drugs, counterfeits, and other illegal items—making our country safer,” said Acting Executive Assistant Commissioner for CBP’s Office of Trade Susan S. Thomas.
The volume of packages entering the U.S. continues to grow as importers adapt to CBP’s updated de minimis policies. The end of the de minimis exemption aligns with CBP’s broader trade enforcement initiatives aimed at ensuring compliance with U.S. customs regulations and safeguarding domestic industries.
CBP provides detailed guidance and resources to the trade community regarding the importation of low-value shipments. For more information, visit CBP’s Frequently Asked Questions about E-Commerce and De Minimis page.
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U.S. Customs and Border Protection (CBP) is America's frontline: the nation's largest law enforcement organization and the world's first unified border management agency. The 67,000+ men and women of CBP protect America on the ground, in the air, and on the seas. We enforce safe, lawful travel and trade and ensure our country's economic prosperity. We enhance the nation's security through innovation, intelligence, collaboration, and trust.
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Trade Duties
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