CBP Announces New Rules for Low-Value International Mail Shipments

Beginning August 29, 2025, U.S. Customs and Border Protection (CBP) will end duty-free treatment for low-value shipments arriving through the international postal system. This change, required under Executive Order 14324, applies to all countries and marks a full departure from the global de minimis framework that previously allowed many low-value imports to enter the U.S. without duty.

New Procedures

Under the new rules, postal carriers and other CBP-approved entities – referred to as “Qualified Parties” – must collect and remit duties on all eligible shipments using one of two approved methods.

• Ad Valorem Option: This first option calculates duty based on the applicable IEEPA tariff rate for the product’s country of origin, multiplied by the item’s declared value.
• Flat-Rate Option: The second option, available only during a six-month transition period, applies a flat rate per package depending on that country’s reciprocal tariff bracket:
  • $80 for rates under 16%;
  • $160 for rates between 16% and 25%; and
  • $200 for rates over 25%.

If a package contains goods from more than one country, the highest applicable rate will apply. After February 28, 2026, the flat-rate option will be eliminated, and all shipments must be processed using the ad valorem method.

Qualified Parties

To participate as a Qualified Party, carriers must hold an international carrier bond and Qualified Parties must obtain a basic importation and entry bond, with minimum amounts starting at $50,000 or 10% of estimated or prior-year duties—whichever is higher. Qualified Parties must also register with CBP by submitting a CBP Form 5106, which establishes their importer account in CBP’s Automated Commercial Environment (ACE).

Reporting and Payment of Duties

The process also brings new reporting and payment obligations. Qualified Parties must:

• Notify CBP of incoming shipments before arrival;
• Identify the country of origin for all goods; and
• Submit detailed shipment data through CBP’s new International Mail Duty worksheet on Pay.gov.

Payments for duties owed are due by the seventh business day of the month following importation. CBP reserves the right to verify data through audits and physical inspections.

Other Considerations

Certain goods are excluded from this simplified process, including items subject to antidumping or countervailing duties, quota restrictions, or those already ineligible for de minimis treatment. Those shipments must continue to be entered through the standard informal or formal entry channels.

Lastly, low value shipments are subject to FDA reporting on all regulated products.

What This Means for U.S. Importers

These changes not only close the door on duty-free treatment for international postal shipments, but they also impose new operational responsibilities on carriers and service providers. With the elimination of de minimis benefits, proactive planning will be critical to avoid unexpected expenses and disruptions. Businesses that source frequently from multiple suppliers abroad may want to review procurement strategies, consolidate shipments when possible, and coordinate closely with carriers or Qualified Parties to ensure duties are calculated and remitted correctly.

At Allyn International, we are committed to supporting the global trade community with strategic, forward-thinking solutions to help navigate today’s complex tariff landscape. Whether you have questions about tariffs, trade agreements, or would like to explore
strategies to reduce their impact on your business operations, our team is here to help. Contact us today for a consultation at sales@allynintl.com, call 239-489-9900, or reach out here.

Contributor: Rebecca Anderson

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About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China, Prague, Czech Republic, and Dubai, U.A.E. For more information, visit www.allynintl.com.