What is the ‘de minimis’ exemption and why is it so important for e-commerce?

A long-standing free trade rule that exempts duties and tariffs on less expensive goods entering the United States may soon be cancelled for shipments from both China and Canada. The so-called de minimis exemption allows for goods valued at or under US$800 to be imported into the U.S. duty free and with minimal paperwork. U.S. President Donald Trump briefly axed the rule for China this month, before reversing course pending the implementation of systems to collect the new revenue. The exemption for Canada will be scrapped as part of the tariff package Trump imposed by executive order on Feb. 1. The moves have plunged the e-commerce industry into chaos, sowing panic and confusion among retailers, shippers and logistics providers. Here’s a look at the de minimis rule, what it means for businesses and consumers, and what comes next. Read More