CBP Collects $1 Billion in First Year Following De Minimis Exemption Phaseout

Trade Policy Change Generates Unprecedented Duty Revenue While Enhancing Border Security

U.S. Customs and Border Protection (CBP) has collected more than $1 billion in duties since eliminating the de minimis exemption earlier this year, marking a significant shift in international trade policy that has reshaped cross-border logistics operations. The revenue milestone was reached through processing over 246 million low-value shipments that previously entered the United States duty-free.

The phaseout began strategically on May 2, 2025, initially targeting low-value shipments from China and Hong Kong before expanding globally on August 29. This two-phase approach allowed logistics providers and importers time to adjust their operations while immediately addressing the largest volume of affected shipments.

"Reaching the $1 billion milestone so quickly shows just how much revenue was slipping away under the old rules," said CBP Commissioner Rodney S. Scott. "With this change, American businesses don't have to compete with duty-free foreign goods, and CBP has stronger oversight of what comes into our country."

Enhanced Enforcement Yields Safety Improvements

Beyond revenue generation, the policy change has strengthened border security and product safety enforcement. CBP reports an 82% increase in seizures of unsafe and non-compliant low-value goods since the China and Hong Kong exemption ended. These seizures included counterfeit products, narcotics, faulty electronics, and items containing hazardous chemicals.

The elimination of de minimis has provided CBP with unprecedented visibility into previously exempt shipments. Susan S. Thomas, Acting Executive Assistant Commissioner for CBP's Office of Trade, noted that "with increased visibility into data for these low-value shipments, we're better equipped to detect and disrupt criminal networks from smuggling drugs, counterfeits, and other illegal items—making our country safer."

Industry Adaptation Continues Despite Tighter Rules

The logistics industry has demonstrated resilience in adapting to the new requirements. Despite initial concerns about processing delays and increased costs, package volumes into the United States continue growing as third-party logistics providers, freight forwarders, and e-commerce fulfillment operations adjust their processes to accommodate duty collection and enhanced documentation requirements.

The policy change has particularly impacted cross-border e-commerce fulfillment strategies, forcing many companies to reconsider their distribution models and pricing structures. Traditional logistics providers have reported increased demand for customs brokerage services and trade compliance consulting as businesses navigate the new regulatory landscape.

Broader Trade Policy Implications

The de minimis elimination represents part of a broader governmental push to enforce trade rules more rigorously and protect domestic manufacturers from what officials characterize as unfair competition. The policy aligns with increasing scrutiny of international trade practices and growing emphasis on supply chain security.

Industry data suggests that annual de minimis volumes more than doubled from 2020 to 2024, with the total value of previously exempted goods reaching $64.6 billion. This explosive growth in low-value shipments, driven largely by direct-to-consumer e-commerce from overseas suppliers, prompted the policy reassessment.

The revenue collection success and enforcement improvements suggest the de minimis phaseout will remain a permanent feature of U.S. trade policy. For logistics providers and their clients, this represents a fundamental shift requiring long-term operational adjustments rather than temporary compliance measures. As cross-border trade continues evolving, the industry must balance efficiency demands with enhanced regulatory requirements that prioritize revenue collection and border security over speed and cost minimization.