U.S. de minimis exemption ending August 29: what e-commerce brands, marketplaces, and platforms need to know about DDP/DDU

Effective August 29, 2025, the United States will eliminate the $800 de minimis exemption. This exemption has long allowed low-value shipments to enter the U.S. duty-free. Once it ends, all shipments into the U.S., regardless of value, must go through full customs clearance with duties and taxes applied.

The only exception is gifts valued under $100.

This change has a direct impact on every business shipping to U.S. customers, whether you’re a small merchant using Shippo’s web app, a scaling brand building on our API, or a marketplace/platform supporting many sellers.

What’s changing

• Delivered Duty Unpaid (DDU) is no longer an option.
  Previously, buyers could pay duties and taxes at delivery. Starting August 29, that’s not allowed.
  
  
• Two models remain:
  
  
  • Delivered Duty Paid (DDP): The seller is responsible for duties and taxes being paid upfront. In e-commerce, this is usually done in one of three ways: (1) showing duties and taxes at checkout and collecting them from the buyer, (2) building the cost into product pricing or shipping fees so the buyer never sees a separate duty/tax line, or (3) absorbing the costs as the seller, so neither duties nor taxes are passed directly to the customer.
    
    
  • What we at Shippo call a “Pre-Entry DDU” model: The buyer still pays duties/taxes, but must do so before the package leaves the origin country. The carrier calculates what’s owed, sends the buyer a payment link (this process will vary by carrier), and only moves the package once the duties and taxes are paid. If the buyer doesn’t pay within the carrier’s timeframe, the parcel may be returned to the sender at a cost.
    
    
• Carrier support varies.
  Major commercial carriers like UPS, FedEx, and DHL Express already support DDP services today, ensuring duties and taxes are prepaid before parcels arrive in the U.S. In addition, certain carriers (like UPS Canada and DPD UK for select service levels) have introduced “Pre-Entry DDU” options. Availability across carriers is evolving, and more solutions are expected in the coming months.
  
  
• Postal suspensions.
  In response to the U.S. executive order, some national postal operators have already suspended acceptance of U.S.-bound parcels containing goods. Others are still evaluating how to implement the new requirements, which may create uncertainty and service gaps. Letters, documents, and gifts under $100 may still be accepted, but commercial shipments will need to move via compliant carriers. Below is a list of carriers that have announced suspensions, please read the links for specifics on what is allowed and what is not. 

What you can do today

For any packages arriving at the U.S. border on or after August 29, you must either use DDP or “Pre-Entry DDU” (labeled DDU in Shippo) for your package.

The DDP/DDU selection is made when you create the commercial invoice for your package by choosing the appropriate option in the Incoterm field. “Pre-entry DDU” services are labeled simply DDU, so you must confirm separately which DDU services function as “Pre-entry.” This video shows you how to do it if you’re using the Shippo App.

For Shippo App users

• From Canada: Use UPS Canada as it supports both DDP and “Pre-Entry DDU”. If you have your own FedEx or DHL Express account connected to Shippo, you can also use those carriers, as they both support DDP.
  
  
• From the UK: Use DPD UK — Air Express, Air Classic, and DPD Direct Lite — as these services support “Pre-Entry DDU”. If you have your own UPS, FedEx, or DHL Express account connected to Shippo, you can also use those carriers, as they all support DDP.
  
  
• From other regions: UPS, FedEx, and DHL Express can all be used if you have your own carrier account connected to Shippo, as they support DDP.
  
  
• Review your customs documentation. Include HS codes, description of goods, declared product value, and country of origin. If your shipment requires special U.S. forms (like CBP-3311 or CBP-7501), you’ll need to obtain those separately, as those are not provided by Shippo.
  
  
• Plan for increased costs. Duties/taxes now apply to all imports starting at $0.01, which will increase costs for you and/or your customers. Carriers may also add administrative fees for handling DDP or “Pre-Entry DDU.”

For now, only use these carriers to avoid packages being returned, delayed, or lost. We’ll share updates as DDP or “Pre-Entry DDU” options become available for more carriers in Shippo.

For API users (high-volume shippers)

• From Canada: Use UPS Canada as it supports both DDP and “Pre-Entry DDU.” If you have your own FedEx or DHL Express account connected to Shippo, you can also use those carriers, as they both support DDP.
  
  
• From the UK: Use DPD UK—specifically Air Express, Air Classic, and DPD Direct Lite—as these services support “Pre-Entry DDU.” If you have your own UPS, FedEx, or DHL Express account connected to Shippo, you can also use those carriers, as they all support DDP.
  
  
• From other regions: UPS, FedEx, and DHL Express accounts connected to Shippo can be used, as they all support DDP.
  
  
• Review your customs documentation. Include HS codes, description of goods, declared product value, and country of origin. If your shipment requires special U.S. forms (like CBP-3311 or CBP-7501), you’ll need to obtain those separately, as those are not provided by Shippo.
  
  
• Plan for increased costs. Duties/taxes now apply to all imports which will increase costs for you and/or your customers. Carriers may also add administrative fees for handling DDP or “Pre-Entry DDU.”

For now, only use these carriers in Shippo to avoid packages being returned, delayed, or lost. We’ll share updates as DDP or “Pre-Entry DDU” options become available for more carriers in Shippo.

For Marketplaces and Platforms

• From Canada: Using UPS Canada may be a possible option. Please reach out to your partner manager to learn more. If you have your own FedEx or DHL Express account connected to Shippo, you can also use those carriers, as they both support DDP.
  
  
• From the UK: Use DPD UK—specifically Air Express, Air Classic, and DPD Direct Lite—as these services support “Pre-Entry DDU.” If you have your own UPS, FedEx, or DHL Express account, you can also use those carriers, as they all support DDP.
  
  
• From other regions: UPS, FedEx, and DHL Express accounts connected to Shippo can be used, as they all support DDP.
  
  
• For now, encourage your sellers to only use these carriers when purchasing labels through Shippo to avoid packages being returned, delayed, or lost. We’ll share updates as DDP or “Pre-Entry DDU” options become available for more carriers in Shippo.
  
  
• Remind your sellers to review their customs documentation. Each shipment must include HS codes, description of goods, declared product value, and country of origin. If shipments require special U.S. forms (like CBP-3311 or CBP-7501), sellers will need to obtain those separately, as those are not provided by Shippo.
  
  
• Prepare your sellers for increased costs. Duties/taxes now apply to all imports. This change will increase costs for your sellers or their customers.
  
  
• Share this guidance with your sellers to help them prepare.
  

How Shippo can help

With Shippo, you can:

• Access 40+ carriers, including those that support DDP and “Pre-Entry DDU.”
  
  
• Automatically map your customs data: When you enter customs-related fields like country of origin, incoterm, item value, and item description through our unified API or app, we handle the legwork of mapping them to the correct fields each carrier requires, so your shipments clear smoothly.
  
  
• Take advantage of multi-carrier flexibility: Pivot quickly as rules evolve and more carriers release solutions.
  

The bottom line

After August 29, 2025, DDU to the U.S. will no longer be an option. If you’re not prepared, you risk lost sales, returned shipments, and unhappy customers. Switching to a DDP- or “Pre-Entry DDU”-capable carrier will save you headaches later.

Bookmark this blog—we’ll update it as more carriers announce solutions.

FAQ: Shipping to the U.S. after the de minimis exemption ends

Q: What exactly is changing on August 29, 2025?
A: The U.S. is ending the $800 de minimis exemption. That means all shipments—regardless of value—will now require duties, taxes, and formal customs clearance. The only exception is gifts valued under $100. In addition, duties and taxes must now be collected before a package can clear customs.

Q: What is DDU?
A: Delivered Duty Unpaid (DDU) is the traditional model where the buyer pays duties and taxes when the package is delivered. Under the new rules, this model is no longer allowed for U.S.-bound shipments.

Q: What is “Pre-Entry DDU” ( labeled DDU in Shippo)?
A: “Pre-Entry DDU” is what we at Shippo call this model where the buyer still pays duties and taxes, but must do so before the package leaves the origin country. The carrier calculates what’s owed, sends the buyer a payment link (this process will vary by carrier), and only moves the package once it’s paid.

Q: What’s the difference between DDU and “Pre-Entry DDU”?
A: DDU (old model)—Buyer pays duties/taxes after the package arrives in the U.S., usually at delivery. “Pre-Entry DDU”— Shippo term to denote that a buyer pays duties/taxes before the package leaves the origin country. If the buyer doesn’t pay, the package is held or returned to the sender.

Q: What is Delivered Duty Paid (DDP)?
A: Under DDP, the seller is responsible for duties and taxes being paid upfront. In e-commerce, this is usually done in one of three ways: (1) showing duties and taxes at checkout and collecting them from the buyer, (2) building the cost into product pricing or shipping fees so the buyer never sees a separate duty/tax line, or (3) absorbing the costs as the seller, so neither duties nor taxes are passed directly to the customer. 

Q: Are gifts exempt from these new rules?
A: Yes, consumer-to-consumer (C2C) shipments clearly marked as gifts under $100 are exempt. Business-to-consumer (B2C) shipments, even if low-value, are not exempt.

Q: What happens if I ship without DDP or “Pre-Entry DDU” after August 29?
A: Shipments that arrive in the U.S. without duties/taxes prepaid will not be released by U.S. Customs. They may be returned to sender, causing delays, extra costs, and unhappy customers.

Q: Will shipping costs increase?
A: Yes. Duties and taxes now apply to all shipments, and some carriers may also add administrative fees for handling DDP or Pre-Entry DDU.

Q: Who else can handle duties and taxes besides carriers?
A: U.S. Customs and Border Protection (CBP) maintains a list of authorized companies that can collect and remit duties. This option may be most relevant for marketplaces and platforms.

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