Square Now End of U.S. De-minimis Duty-Free (Aug 29, 2025): What Exporters Must Check

Registration dateSEP 10, 2025

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This is Samsung SDS Digital Logistics Servic Cello Square

On July 30, 2025, U.S. President Biden signed Executive Order 14324, announcing the termination of the de-minimis duty-free threshold ($800 and below).

From August 29, 2025, all imported goods will be subject to U.S. Customs and Border Protection (CBP) duties and tariffs, regardless of shipment value.

This marks an expansion of the May 2025 policy that initially removed de-minimis benefits for shipments originating from China and Hong Kong, now applying to all countries worldwide.

🔑 Key Changes

Policy: All imports to the U.S. are now subject to tariffs
Effective Date: August 29, 2025
Legal Basis: IEEPA (International Emergency Economic Powers Act) – granting the U.S. President authority to impose broad trade restrictions during national emergencies
Tariff Structure: Reciprocal tariff rates, which vary by country

💵 Tariff Calculation

Reciprocal Tariff Rate	Example Countries	Notes
Below 16%	South Korea (15%), EU, UK, Japan	Lower tariff group
16–25%	Indonesia, Malaysia, Thailand, Vietnam	Mid-tier group
Above 25%	China, Brazil, Canada, Iraq, Syria	Higher tariff group

When multiple products from different origins are consolidated in a single parcel, the highest country tariff rate applies.

📝 Customs Procedures & Tariffs

Clearance Type	Declared Value	Duty Treatment
Type 86 (Section 321)	<$800	Program terminated
Type 11 (Informal Entry)	<$2,500	Standard duty + reciprocal tariff
Type 01 (Formal Entry)	≥$2,500	Standard duty + reciprocal tariff

🎯 Exporter Preparation Checklist

1. Recalculate Pricing: Incorporate estimated duties and tariffs into your retail price.
2. Consider DDP (Delivered Duty Paid): Prevent confusion and improve customer experience.
3. Accurate Export Documentation: Ensure product name, HS code, origin, quantity, and unit price are correct. → Misdeclaration of HS code or origin may be treated as tariff evasion and subject to penalties up to 40%.
4. Monitor Tariff Policies: U.S. trade policy is evolving rapidly—stay updated.
5. Leverage Trade Agreements: Confirm applicable FTAs or regional trade agreements (e.g., USMCA, EU FTAs, CPTPP, RCEP).

🌍 Resources for Global Exporters

World Customs Organization (WCO)
World Trade Organization – Tariff Data
U.S. CBP Tariff Database
EU TARIC System

📦 Case Study: South Korea (U.S.-bound Exports)

South Korea has been assigned a 15% reciprocal tariff rate under EO 14324.
This particularly impacts industries such as K-Beauty and consumer goods.

Product Category	HS Code	Base Duty	FTA Rate	Reciprocal Tariff	Total Duty (w/FTA)
Lip products	3304.10	Free	0%	15%	15%
Eye makeup	3304.20	Free	0%	15%	15%
Powders	3304.91	Free	0%	15%	15%
Skincare incl. sunscreen	3304.99*	Free	0%	15%	15%
Sheet masks	3307.90*	5.4%	0%	15%	- 15% (FTA) - 20.4% (no FTA)

⚠️ For HS 3304.99* and 3307.90*, U.S. CBP may impose an additional 50% tariff on steel/aluminum content, plus the reciprocal 15%.
👉 Exporters should obtain Certificates of Origin and claim FTA benefits wherever applicable to minimize duty impact.

⚠️ Disclaimer

This material is provided for informational purposes only. While every effort has been made to ensure accuracy, no guarantee is made as to completeness or suitability for a specific purpose. Exporters remain responsible for their own compliance decisions.

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