De Minimis Exemption Slated to End in 2027

What It Means for Apparel Brands That Import from Overseas

One of the biggest cost-saving tools for small apparel brands—the de minimis exemption—is set to disappear in 2027.

This exemption currently allows goods valued under $800 to enter the U.S. duty-free, helping direct-to-consumer brands and small importers avoid high tariffs. But with increasing political pressure and trade tensions, especially involving fast fashion giants, the clock is ticking on this advantage.

Here’s what brands need to know, and how to prepare.

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What Is the De Minimis Exemption?

Under current U.S. law, imported goods valued under $800 per shipment can bypass tariffs and customs duties. This has been a massive benefit for:

Small brands shipping samples or small-batch goods

DTC brands using fulfillment centers in Asia

Importers testing products in the U.S. market

It’s especially common with express couriers like DHL, FedEx, and UPS.

What’s Changing?

As of 2027, legislation backed by both parties is expected to remove or severely limit this exemption—particularly targeting countries like China.

This would mean:

Every shipment would be subject to duties

Brands would need a customs broker or formal entry process

Increased landed costs on small-value imports

More delays and paperwork at customs

Who’s Affected?

Small brands sourcing directly from overseas

Startups importing samples or testing the U.S. market

DTC brands with no U.S. distribution hub

Ecommerce sellers relying on low-cost fulfillment from China, Vietnam, Bangladesh, etc.

If you’ve been shipping small quantities under $800 per invoice to stay duty-free, this change will directly hit your margins.

How to Prepare Now

The phase-out may be gradual, but brands should start adapting today.

Steps to take:

Plan for duty-inclusive pricing in your forecasts

Consolidate shipments to reduce frequency and manage customs costs

Move inventory to a U.S. fulfillment center or 3PL

Shift to full container or LCL shipping with proper customs clearance

Explore bonded warehouses for deferment

At [smpl], we’re already helping our clients prepare for a post-de minimis world with flexible production plans and smarter shipping options.

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The Bottom Line

The de minimis exemption helped small brands grow fast. But by 2027, that chapter may close. If you depend on low-volume international shipping, now’s the time to future-proof your supply chain and rework your landed cost model.

Need help navigating what’s next? [smpl] makes it easier—with sourcing, production, and logistics support built for the new rules.