Operator glossary
De minimis ($800 rule — and its death)
The old $800 duty-free threshold that powered Temu, Shein, and half of dropshipping — killed for China-origin goods in May 2025 and broadly suspended after — repricing every direct-from-China parcel model overnight.
Section 321 de minimis let sub-$800 shipments enter the US duty-free with minimal paperwork — the legal engine under direct-from-China parcel commerce. Executive action ended the exemption for China and Hong Kong origin goods in May 2025, with suspension broadened later in 2025; parcels that flew duty-free now face duties and formal-entry economics.
For FBA-centric sellers the direct impact is modest (container imports always paid duties) and the competitive impact is large: the structural price advantage of parcel-direct competitors shrank, returns-by-mail dropship models broke, and demand shifted toward domestically stocked inventory — your FBA position. The watch item is policy volatility: the rules moved repeatedly in 2025 and remain a live political lever.
The numbers
- Was: sub-$800 shipments duty-free with minimal entry; ended for China/HK origin May 2025, suspension broadened later in 2025.
- Net effect: parcel-direct models repriced; domestically stocked (FBA) positions gained relative advantage; policy remains volatile.