The End of the De Minimis Exemption Exposes Billions More Shipments to US Forced Labor Enforcement

The De Minimis exemption ends today, meaning that all shipments - no matter how small - will be subject to customs enforcement of tariffs as well as laws prohibiting the importation of products made in part or in whole with forced labor. 

The De Minimis exemption eliminated tariffs and most other scrutiny for packages worth less than $800, leading to an explosion in international direct-to-consumer commerce. In 2024 alone de miniminis shipments to the US reached over 1.36 billion packages, up from 220 million in 2016. 

Consumers will feel the impact of the de minimis repeal directly through the added tariffs that small packages will now be subjected to. But that's not all: companies also will now face the risk that their shipments are detained if US Customs and Border Protection suspects that they were made with any forced labor.

Even before the de minimis exemption was eliminated, CBP was ramping up its forced labor enforcement. The number of shipments detained under UFLPA has been increasing year over year, with a particular focus on industries like electronics, apparel, and automotive parts. This enforcement will now be extended to the massive volume of de minimis shipments.

CBP will require more detailed data from importers as part of ramping up enforcement, such as the 10-digit Harmonized Tariff Schedule (HTS) classification, the seller and purchaser names, and the country of shipment, which will make it easier to identify and interdict illegal shipments.

When a shipment is flagged as high-risk, CBP can detain it. The importer then has the burden of providing "clear and convincing evidence" that the goods were not made with forced labor to get the shipment released. This process is complex and often requires detailed supply chain documentation.

The end of the de minimis exemption levels the playing field between large importers, who have had to map their indirect supply chains and account for forced labor risk for years, and D2C companies that have operated under the radar of US Customs and Border Protection. 

To learn more about how your company can prepare for enhanced forced labor enforcement, including how to run a mock customs detention on your supply chain to test for CBP readiness, get in touch with the policy and tech experts at Sourcemap.com.