Effective August 29, 2025, at 12:01 a.m. EDT, a significant change will take effect for all international shipments to the United States. The long-standing duty-free de minimis threshold of US$800 will be removed for goods originating from certain countries.

This change will impact many businesses and individuals shipping from Singapore to the U.S. This article breaks down what it means, why it's happening, and how you can prepare.

What is Changing?

Currently, under Section 321 of the U.S. Tariff Act, most low-value shipments (valued at US$800 or less) entering the United States are exempt from duties and taxes, regardless of their country of origin. This is known as the "de minimis" threshold.

As of the end of August 2025, this blanket exemption will no longer apply. Shipments from specific countries, including Singapore, will now be subject to standard U.S. import duties and taxes, even if their value is below $800.

Why is This Happening?

This change is a result of new U.S. trade policies aimed at addressing trade imbalances and ensuring fair competition. The removal of the de minimis privilege for certain trading partners is a measure to encourage domestic manufacturing and apply tariffs more broadly.

What This Means for Your Shipments from Singapore

If you regularly send goods to customers, friends, or family in the U.S., you need to be aware of these key changes:

1. Potential for Higher Costs: The most direct impact will be on the total landed cost for the U.S. recipient. Goods that previously entered duty-free may now be subject to:

• Import Duties: Based on the product's Harmonized System (HS) code.

• Taxes: Such as applicable sales tax.

• Customs Clearance Fees: Charged by the carrier for processing the formal entry.

2. Increased Paperwork and Complexity: Shipments valued under $800 currently require minimal customs documentation. After this change, these shipments will likely require:

• A more detailed Commercial Invoice.

• The correct HS Code for each item in the shipment.

• Potentially, other customs-specific documentation for formal entry.

3. Possible Delivery Delays: The customs clearance process for shipments that require duty assessment and payment is more complex. This could lead to delays in the final delivery of the package while customs processes the payment and releases the goods.

Who Will Be Most Affected?

• E-commerce Businesses: Singaporean SMEs and online sellers who frequently ship low-value orders to U.S. consumers will see increased costs and administrative burdens.

• Individuals Sending Gifts: The cost of sending gifts to the U.S. may increase significantly for the recipient if duties and taxes are applied.

• Dropshipping Businesses: This model, which relies on shipping low-value items directly to consumers, will be directly impacted by the added costs.

What You Can Do Now to Prepare

1. Stay Informed: Bookmark this page and follow our updates as we get closer to the implementation date.

2. Review Your Product Values: If you are a business, assess your product catalog and identify which items will be affected.

3. Communicate with U.S. Customers: Start planning how to communicate these potential new costs to your customers to manage expectations. Be transparent about the possibility of import fees.

4. Ensure Accurate Documentation: Now more than ever, providing a detailed and accurate commercial invoice with correct HS codes and values will be critical to avoiding customs delays and penalties.

Have Questions? We're Here to Help.

Navigating international shipping regulations is our expertise. While this change presents a new challenge, you don't have to face it alone.

Get in touch with our customer support team if you have specific questions about how this might affect your shipping patterns. For the most reliable and up-to-date shipping solutions from Singapore to the U.S., trust SimplyParcel.

*Need help? Contact us at simplyparcelsg@gmail.com or Whatsapp us at +65 6906 0553

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