Effective May 2, 2025, the United States has removed the de minimis exemption for products imported from China and Hong Kong SAR, creating significant changes for cross-border e-commerce and shipping. If you’re a netParcel user shipping to U.S. customers, it’s critical to understand what this means and how to adapt.
What’s Changed?
Previously, shipments with a value under $800 USD were allowed duty-free entry into the U.S. under the de minimis rule. As of May 2, 2025 at 12:01 AM EST, this exemption no longer applies to any shipment where China or Hong Kong SAR is listed as the country of origin or manufacture.
Key Implications:
- All shipments from China or Hong Kong, regardless of value, must now be submitted as informal or formal customs entries
- Shipments may be subject to up to 120% duties or a flat fee of $100 USD, plus brokerage fees
- Non-compliant shipments may experience delays or rejections
Important Updates for U.S.-Bound Shipments
To help you navigate this change, here are the most important things to keep in mind when shipping from Canada to the United States:
- Declare Accurate Country of Origin
Be clear and truthful about where your product is manufactured. This affects duty rates and eligibility. - Use the Correct 10-Digit Harmonized System (HS) Code
Proper classification ensures accurate duty calculation and helps avoid customs holds. - Use Canada Post Where Appropriate
Canada Post may offer simpler clearance procedures and lower brokerage costs on certain low-value items. - Provide Complete Commercial Invoices
Include detailed product descriptions, quantities, unit values, and HS codes. Incomplete invoices increase the risk of delays. - Include the Recipient’s Importer ID and Contact Information
U.S. Customs may require an EIN (Employer Identification Number) or SSN (Social Security Number). Also include the recipient’s email and phone number in case customs or carriers need to make contact. - Packages Exporting to the U.S. Will Remain in Canada Until Cleared by Customs
Shipments are now required to remain within Canada until full customs clearance is achieved. - Uncleared Shipments Will Be Returned After 5 Business Days
If a shipment is not released by U.S. Customs within five business days, it will be returned to the sender without prior notice. Return fees for these shipments may be incurred.
How netParcel Can Help
netParcel provides you with direct access to a range of shipping services, helping you:
- Compare rates and delivery times across top carriers
- Generate compliant commercial invoices
- Make informed choices on carrier services based on customs performance and fees
We work closely with our carrier partners to keep you informed and supported as customs policies evolve. Whether you’re a small business shipping occasionally or managing high-volume e-commerce, netParcel is your partner in hassle-free cross-border delivery.
For easy-access resources on HS codes, please visit https://www.canadapostpostescanada.ca/information/app/wtz/business/findHsCode?execution=e1s1
or,
https://ship.purolator.com/pta/en/index.html#/productInfo
As always, please reach out to our Support team by email to support@netparcel.com, or by phone at 1-855-891-4521 should you have any questions.
Thank you,
The netParcel Team
