[Latest 2025 Update] De Minimis Rule Eliminated for U.S. Exports! What E-Commerce Businesses Need to Know About DDP Compliance

[Latest 2025 Update] U.S. “De Minimis Rule” for Exports Abolished! What E-Commerce Businesses Need to Know About DDP Compliance Starting Friday, August 29, 2025, at 1:00 PM (Japan Time), significant rule changes will take effect for exports and e-commerce shipments to the United States. Previously, the “de minimis rule” applied in the U.S., exempting shipments valued at $800 or less from duties. This system is now being abolished. Going forward, all imported goods will be subject to customs duties and consumption tax regardless of value. This has a major impact on e-commerce businesses selling products from Japan to the U.S. This article clearly explains the details of this revision, key points to note, and essential considerations for implementing DDP shipping.

What is the Abolition of the De Minimis Rule? Under the previous “de minimis rule,” goods valued at $800 or less were exempt from duties. This system allowed even small-scale e-commerce businesses to easily sell low-priced items to the U.S. However, this system will be abolished after August 29, 2025. Even low-value goods will now be subject to customs duties and consumption taxes, increasing import costs for U.S. consumers as well.

The Difference Between DDU and DDP Delivery A key consideration under this new policy is choosing the delivery Incoterm (DDU or DDP). DDU (Delivered Duty Unpaid) = Delivery with Unpaid Duties The recipient (in the U.S.) pays the customs duties, sales tax, and handling fees. While convenient for the seller, there is a risk the recipient may refuse payment or cause delivery delays.

DDP (Delivered Duty Paid) = Delivery with Duties Paid The seller (shipper) bears the customs duties, consumption taxes, and customs clearance fees. The recipient receives the goods smoothly without additional costs, enhancing the e-commerce purchasing experience. However, accurately simulating the exact customs duties and taxes beforehand is crucial.

Carrier-Specific Support Status FedEx / DHL / UPS Supports both DDU and DDP. If choosing DDP, sellers must accurately understand their cost burden.

FedEx International Connect Plus (FICP) Starting August 29, 2025, DDU restrictions will expand for all countries of origin. An account number will be mandatory, requiring preparation assuming DDP use.

Japan Post (EMS, Parcels, etc.) As of August 27, 2025, acceptance of most items destined for the US will cease. Furthermore, as DDP is not supported, using Japan Post for US sales will become difficult.

Points to Note When Using Ship&co The shipping quote screen in Ship&co does not include customs duties, taxes, or DDP fees. These will be billed by the carrier after shipment. Therefore, it is crucial to understand the customs duty amount in advance and reflect it in your sales price and shipping fee settings.

Measures E-commerce Businesses Should Take Consider Introducing DDP Shipping Eliminating additional costs for customers can lead to increased purchase rates.

Estimate Customs Duty and Consumption Tax Costs Perform simulations beforehand to ensure these costs can be appropriately passed on to the product price.

Register HS Codes and Country of Origin Information Ensure accurate information is listed on the invoice to prevent customs delays and customs duty calculation errors.

Summary: DDP is Key to US E-commerce Sales After August 29, 2025, all shipments to the US will be subject to taxation. The strategy of relying on “low value for tax exemption” will no longer work. Going forward, implementing DDP delivery and establishing a system where buyers can receive goods with peace of mind will be the key to success in the US e-commerce market.