The End of De Minimis: US CBP's Entry Type 13 Test and the EU's €150 Change Reshape Low-Value Exports

For years, small parcels slipped into the United States and the European Union duty-free under "de minimis" thresholds — the US $800 rule and the EU €150 rule. That era is ending. The US has removed duty-free treatment for most low-value imports, and the EU has scrapped its €150 customs-duty exemption. For Indian exporters who ship direct-to-consumer, sell on global marketplaces, or move samples and spares by courier and post, the economics and paperwork of small shipments have fundamentally changed. This is a corridor read on what is happening and how to adapt.

What Happened

In the United States, the $800 de minimis exemption was withdrawn for most low-value imports (effective from 29 August 2025). Shipments that once entered duty-free are now subject to customs duties and applicable taxes regardless of value, and each order generally requires a formal electronic entry with a 10-digit HTS code and full duty payment. Customs and Border Protection (CBP) has announced a voluntary electronic test, "Entry Type 13," for international mail shipments valued at $2,500 or less, beginning 22 September 2026, and a separate per-parcel handling fee on low-value postal shipments is scheduled to take effect no later than 1 November 2026.

In the European Union, the customs-duty exemption for imports valued at or below €150 ended on 1 July 2026, with low-value parcels now attracting a customs duty of €3 per item. Several other markets have moved in the same direction, tightening or removing their own low-value exemptions.

Why This Matters

De minimis was the invisible subsidy that made cross-border e-commerce and low-value courier trade cheap and simple. Its removal adds duty cost, formal-entry data requirements and per-parcel fees to shipments whose margins were often thin to begin with. The disruption is real: postal traffic to the US reportedly fell sharply — by around 80% — in the wake of the exemption ending, as carriers and sellers scrambled to adapt. For Indian sellers, the change hits price competitiveness, checkout economics and fulfilment choices all at once.

Who's Affected

Indian direct-to-consumer and marketplace e-commerce exporters shipping small parcels to US and EU buyers are most exposed, along with sellers of samples, spares and gifts by courier and post. Freight forwarders, express operators and postal operators must adjust to formal-entry data, duty collection and new fees. CHAs and logistics partners advising exporters on landed cost and delivery models need to rebuild their assumptions. Larger exporters shipping in bulk on commercial invoices are less directly affected, but their downstream e-commerce channels are not.

Operational Detail

The practical shift is from "no entry, no duty" to "formal data and duty on every parcel." In the US, that means an accurate 10-digit HTS classification, a compliant entry, and duty paid — plus, from late September, the option to participate in CBP's Entry Type 13 test for qualifying mail shipments, and, from around 1 November, a per-parcel postal handling fee to budget for. In the EU, the €3-per-item duty and the associated data requirements apply to low-value parcels. Delivered-Duty-Paid (DDP) models, where the seller pre-pays duty and taxes, become far more attractive because they avoid surprising the customer with charges on delivery and reduce refusals and returns.

What Exporters Should Do Now

• Recalculate landed cost for every US and EU low-value SKU, building in duty, taxes and per-parcel fees.
• Ensure accurate HTS/HS classification at 10 digits for the US and correct commodity coding for the EU — misclassification now costs money and causes holds.
• Consider shifting to DDP so customers see an all-in price and parcels are not held for duty at destination.
• Review whether bulk import into an overseas 3PL/fulfilment hub (then local last-mile) beats parcel-by-parcel cross-border shipping.
• Update checkout, pricing and returns policies so buyers understand duties and to limit refused deliveries.

What Forwarders and CHAs Should Do Now

• Confirm your systems and postal/express partners can produce formal-entry data and collect duty for US and EU low-value parcels.
• Brief clients on CBP's Entry Type 13 test (from 22 September 2026) and the coming per-parcel postal fee, and factor both into quotes.
• Offer DDP and consolidation options and help clients model hub-based fulfilment.

The Bigger Picture

The worldwide retreat from de minimis — the US, the EU and others — signals that duty-free small-parcel trade is no longer a reliable channel. It is part of a broader tightening around cross-border e-commerce, customs data and revenue. For Indian exporters, the winners will be those who professionalise their overseas logistics: correct classification, DDP pricing, and, where volumes justify it, local warehousing. The casual "just post it" model is the one under pressure.

Frequently Asked Questions

Does US de minimis still exist at all? For most commercial low-value imports the duty-free exemption has been removed; shipments now generally need a formal entry and duty. Treat de minimis as gone for planning purposes and confirm specifics with your customs broker.

What is CBP's Entry Type 13? A voluntary electronic test for international mail shipments valued at $2,500 or less, beginning 22 September 2026. It is one route for handling qualifying mail entries.

What changed in the EU? The €150 customs-duty exemption ended on 1 July 2026, with low-value parcels now attracting a €3-per-item customs duty, alongside existing VAT rules.

Is DDP now better than DAP for small parcels? Often yes. DDP shows the customer an all-in price and avoids parcels being held for duty on arrival, reducing refusals — but model the cost for your lanes before committing.

Conclusion

The end of de minimis in the US and EU raises the cost and complexity of every low-value parcel Indian exporters send to their two largest Western markets. The response is operational, not dramatic: classify accurately, price on a landed-cost basis, lean toward DDP, and consider local fulfilment where volumes support it. Exporters who adapt their logistics now will hold their competitiveness; those who wait will feel it at checkout.

This article is for general guidance only and the rules differ by market and shipment type. Verify current requirements with US Customs and Border Protection (cbp.gov), the European Commission's customs pages and your customs broker before acting.