(UNITED STATES) Families and friends sending gifts or personal parcels to loved ones in the United States 🇺🇸 now face a major change: starting August 29, 2025, all packages from abroad—including those from India—are subject to customs duties, no matter their value or purpose. This new U.S. trade policy ends the long-standing practice of allowing small, duty-free shipments, making even sentimental gifts part of a larger trade and security debate.
The change comes after President Trump signed an executive order on July 30, 2025, suspending the “de minimis” exemption for all countries. For decades, this exemption let shipments valued under $800 enter the United States 🇺🇸 without customs duties. Now, with the exemption gone, every parcel—whether it’s a box of sweets, clothes, or a book—faces full import procedures and possible tariffs. The move is part of a broader overhaul of U.S. trade policy, aiming to close what officials called a “backdoor” for duty-free imports and to address concerns about smuggling and lost government revenue.
What Does the End of the De Minimis Exemption Mean for You?
If you’re sending a package from India to the United States 🇺🇸, here’s what you need to know:
- All packages, including gifts, are now subject to customs duties, regardless of value.
- There are no exemptions for personal use, gifting, or sentimental value under the new rules.
- The recipient (or their courier) must declare the contents and pay duties based on the declared value and U.S. import classification.
- Mislabeling or undervaluing packages can result in penalties, delays, or even seizure.
The only remaining duty-free exception is for “bona fide gifts” valued at $100 or less—a sharp drop from the previous $800 threshold. This means that even a small box of sweets or a set of clothes sent for a festival or birthday could now come with a customs bill.
How Are Customs Duties Calculated?
U.S. Customs and Border Protection (CBP) calculates duties based on:
- The declared value of the item
- The type of goods, classified under the Harmonized Tariff Schedule
- The country of origin (for India, many categories now face a 50% tariff)
For example, if you send a package from India with a declared value of $200, and it contains garments or jewelry, the recipient could face a $100 duty. If the package is sent via the international postal service, there is a temporary option (until February 28, 2026) to pay a flat duty per item—$200 for countries like India with a tariff rate above 25%. After that, only the percentage-based (ad valorem) duty will apply.
Why Did the U.S. Make This Change?
The policy shift is rooted in a growing trade dispute between the United States 🇺🇸 and India. In August 2025, President Trump announced new tariffs on Indian goods, raising rates to 50% in response to India’s continued imports of Russian oil. To ensure fairness and prevent loopholes, the U.S. eliminated the de minimis exemption for all countries, not just India.
Officials argue that the old system was being abused. According to the Department of Homeland Security, 90% of all cargo seizures in fiscal year 2024 were de minimis shipments, and 98% of narcotics and 97% of counterfeit items seized fell under the old exemption. The government says the new rules will help stop smuggling, protect American jobs, and recover lost tariff revenue.
Common Misconceptions About the New Rules
Many people still believe that gifts or low-value items are exempt from duties. Here are some myths and facts:
| Myth | Fact |
|---|---|
| “It’s just a gift, not for sale—no duty!” | All goods are subject to duty, even if they’re gifts or personal items. |
| “Low-value items under $800 are exempt.” | Not anymore—the de minimis exemption no longer applies. |
| “I’ll mark it as ‘Used Clothes’ or ‘Personal Gift’—that’s enough.” | Mislabeling can result in penalties, delays, or even seizure. Accurate declarations are mandatory. |
Step-by-Step: Sending a Package from India to the U.S.
- ✅ Choose a Shipping Method:
- Courier (FedEx, DHL, UPS): Full customs clearance, duties based on value and tariff classification.
- International Postal Service: For six months, you can choose to pay a flat duty per item or the percentage-based duty. After February 28, 2026, only the percentage-based duty will apply.
- ✅ Prepare Accurate Documentation:
- Complete a detailed customs declaration form. You can find the official forms and instructions on the U.S. Customs and Border Protection website.
- Accurately describe and value each item. Include invoices or receipts if available.
- ✅ Inform the Recipient:
- Let them know they will need to pay duties before receiving the package.
- ✅ Pay Duties:
- Duties are collected by CBP or the courier/postal service when the package arrives.
- ✅ Avoid Restricted Items:
- Do not send prohibited or restricted goods (certain foods, medicines, electronics, etc.) without proper paperwork.
Who Is Affected by the New U.S. Trade Policy?
- Families and Friends: Indian families sending gifts for festivals, birthdays, or special occasions now face extra costs and paperwork. Even small, personal packages are no longer exempt.
- Ecommerce and Logistics Providers: Companies that ship goods to the United States 🇺🇸 must now comply with stricter customs rules, leading to higher compliance costs and possible delivery delays.
- Consumers: Recipients in the United States 🇺🇸 may be surprised by customs bills and longer wait times for their packages.
Official Statements and Enforcement
President Trump described the change as a way to protect national security and American jobs, saying the old system was abused for smuggling and tariff evasion. DHS Secretary Kristi Noem is responsible for enforcing the new rules and closing loopholes. CBP will handle duty collection and enforcement.
According to analysis by VisaVerge.com, the volume of de minimis shipments was huge—over 1.36 billion in 2024, with 309 million in the first half of 2025 alone. The government points to “significant lost revenue” and national security risks as key reasons for the crackdown.
What Should Senders Do Now?
- Use reputable couriers or postal services with customs support and tracking.
- Declare contents and values truthfully—never mislabel or undervalue.
- Inform recipients about potential duties and delays.
- Check for restricted or prohibited items before shipping.
- Monitor official government websites for updates, as tariff rates and procedures may change.
Practical Example: Sending a Diwali Gift
Suppose you want to send a Diwali gift box from India to your sister in the United States 🇺🇸. The box contains sweets and a sari, with a total declared value of $150. Under the new rules, the recipient will have to pay a 50% duty—$75—before receiving the package. If you use the postal service before February 28, 2026, you could choose to pay a flat $200 duty per item instead, but this is often more expensive for low-value packages.
Declared Value
$150
Duty Rate
50%
Duty Amount
$75
Alternative Flat Duty
$200
Looking Ahead: What’s Next?
- The flat duty option for postal shipments is temporary and ends after February 28, 2026.
- After that, all shipments will be subject to percentage-based duties only.
- The statutory de minimis exemption is permanently repealed as of July 1, 2027, but the executive order already put the new rules in place.
- Tariff rates may change based on future trade negotiations or presidential orders.
Where to Find More Information
For the latest updates, official forms, and detailed instructions, visit the U.S. Customs and Border Protection (CBP) website. This site provides current rules, tariff rates, and guidance for both senders and recipients.
Final Takeaways
The end of the de minimis exemption marks a big shift in how the United States 🇺🇸 handles small imports and personal gifts. What used to be a simple act of sending love across borders now involves paperwork, customs declarations, and sometimes hefty fees. Families, friends, and businesses must stay informed and follow the new rules to avoid surprises and delays. By declaring items truthfully, choosing reliable shipping methods, and preparing for possible duties, senders can still connect with loved ones—just with a little more planning and cost.
As global politics and U.S. trade policy continue to evolve, staying updated is the best way to keep your gifts—and your good intentions—moving smoothly across borders.
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