Skip to main content
Customs8 min read

De minimis customs threshold: country-by-country guide (2026)

By
Lead Customs Analyst · at TRADE-COST

The small-parcel puzzle for importers

You order a $120 accessory from a Chinese supplier, or ship a $700 sample to a US customer. Do you owe duties? Will VAT be collected on delivery? The answer hinges on a little-understood but strategic mechanism: the de minimis threshold.

This country-specific cutoff decides whether your shipment is treated as a dutiable commercial import or as an exempt low-value parcel. The gap is huge: a $140 parcel moving from China to the EU pays zero customs duty, whereas a $160 parcel pays duty plus VAT on the full amount. A few dollars of difference can translate into tens of dollars of taxes.

This guide maps the real 2026 thresholds across 15 major markets, explains the common pitfalls (splitting, CIF vs FOB base, category exclusions), and provides three worked examples you can use today.

What is the de minimis threshold?

The de minimis threshold (from the Latin de minimis non curat lex, "the law does not concern itself with trifles") is a value ceiling below which a customs authority waives duty collection, and sometimes internal taxes (VAT, GST, sales tax), on an import.

The logic is purely economic: collecting $3 of duty on an $18 parcel costs the government more in administrative handling than the revenue generated. The threshold is therefore calibrated at the equilibrium point between facilitating cross-border commerce and protecting tax receipts.

Three essential rules to keep in mind:

  • The threshold varies by country, and sometimes differs within a country depending on the tax (duty vs VAT/GST).
  • The calculation base differs: product value alone (FOB) or full customs value (CIF with freight and insurance).
  • Some products are always excluded: alcohol, tobacco, items under health authorization, goods targeted by anti-dumping measures.

Thresholds by country (2026)

Official values in force as of April 2026, as integrated in the TRADE-COST calculation engine:

Country / zoneDuty thresholdTax thresholdNote
United States (US)USD 800USD 800Section 321, no duties or federal taxes
Canada (CA)CAD 20CAD 20Very low — duties almost always due
Mexico (MX)USD 50USD 50Express courier up to USD 1,000
Brazil (BR)USD 50USD 50Individual-to-individual only
European UnionEUR 150EUR 0 (VAT from 1st euro)EUR 22 VAT threshold removed 07/2021
United Kingdom (GB)GBP 135GBP 0 (VAT always due)VAT collected by seller when below threshold
Switzerland (CH)CHF 300CHF 300Duty + VAT waived below
Norway (NO)NOK 350NOK 350~ USD 33, strict enforcement above
Australia (AU)AUD 1,000AUD 0 (GST via GST on LVIG)GST collected by seller upstream
New Zealand (NZ)NZD 1,000NZD 0 (GST via seller)Similar mechanism to AU
Japan (JP)JPY 10,000JPY 10,000~ USD 65, CIF value
China (CN, import)USD 50USD 50Postal channel only
Singapore (SG)SGD 400SGD 400GST extended to out-of-scope goods since 2023
Hong Kong (HK)No duties evern/a (no VAT)Total free port
UAE / Saudi Arabia~ AED 1,000 / SAR 1,000VAT 5% from 1stExpress courier thresholds, varies by Emirate

Key takeaway: the United States is by far the most generous jurisdiction, with $800 free of duty AND tax. The EU applies the opposite trap: duty-free below EUR 150 but VAT due from the very first cent. Hong Kong is the only total free port with no duties whatsoever.

Common pitfalls to avoid

1. Splitting an order = customs fraud

This is the number-one temptation for D2C importers. Example: a $1,500 order to the US split into two $750 shipments to stay under Section 321. CBP automatically aggregates multiple shipments from the same sender to the same recipient within a single day (and often within a week). The result: duties recomputed, civil penalty assessed, and the importer-of-record file is flagged. Identical rules apply in the EU (IOSS regulation), UK (HMRC), and Australia (ABF).

2. Confusing duty exemption with VAT/tax exemption

In the EU, the de minimis threshold covers only customs duty. VAT has been due from the very first euro since July 2021 via the IOSS (Import One-Stop-Shop) mechanism. An $80 parcel from China to France therefore pays: $0 in duty, but $16 in VAT (20% standard rate). Same logic in the UK, where VAT is always collected below the GBP 135 threshold.

3. Under-declaring the value

Asking your Chinese supplier to write "gift value $45" on a $300 shipment is illegal and customs knows it. Modern systems (ACAS in the US, ICS2 in the EU, HMRC CDS in the UK) cross-check the declared value against the seller's price history, the PayPal or Stripe transaction amount, and the tracking number. A detected under-valuation triggers parcel retention until payment of the differential plus a 10 to 30 percent penalty on the real value.

4. Forgetting the base varies (FOB vs CIF)

The US compares the $800 threshold to FOB product value. The EU, UK, Canada and Japan use CIF value: product + freight + insurance. A $140 ceramic bowl bought in China with $25 DHL shipping exceeds the EUR 150 EU threshold once transport is added ($165 CIF). Your parcel flips into the taxable regime.

Three worked examples

Example 1: $900 smartphone from China to the US

FOB value = USD 900

US Section 321 threshold = USD 800

Result: above threshold — formal entry required

Smartphone duty (HS 8517.13) = 0% (ITA agreement)

MPF (Merchandise Processing Fee) = 0.3464% min USD 31.67

Total tax cost = USD 31.67 (MPF minimum)

Even when the duty rate is zero for this HS code, crossing the threshold still triggers the full customs entry process with a minimum MPF of $31.67. The cost is modest here but shows the cliff behavior of the threshold.

Example 2: $100 cosmetics shipment from China to France

CIF value = EUR 100 (product + freight)

EU duty threshold = EUR 150 → below threshold

Customs duty = EUR 0

VAT threshold = EUR 0 → VAT due

VAT = 100 × 20% = EUR 20

Total tax cost = EUR 20

Classic EU trap: the buyer assumes total exemption because the parcel is under EUR 150, but EUR 20 of VAT is still collected by the carrier or via IOSS at checkout. On a 30% retail margin, two-thirds of the profit disappear if VAT was not priced in upfront.

Example 3: $120 apparel item from Turkey to the UK

CIF value = GBP 120

GB duty threshold = GBP 135 → below threshold

Customs duty = GBP 0 (Turkey origin: preferential agreement)

UK VAT always due = 120 × 20% = GBP 24

Total tax cost = GBP 24

Same structure as the EU: duty is waived but VAT remains due. If the Turkish seller has no UK VAT registration, the carrier (Royal Mail, DHL, UPS) collects VAT on delivery along with a GBP 8 to 12 handling fee.

Test your scenario on the TRADE-COST calculator

Enter origin, destination, value and HS code: the calculator automatically applies the de minimis threshold and distinguishes duty from internal taxes.

Run calculation →

Conclusion: the threshold is a line, not a zone

De minimis is a powerful tool for low-value flows, but using it correctly requires knowing three variables: the applicable ceiling, the calculation base (FOB or CIF), and the separate treatment of VAT or sales tax. A savvy importer calibrates shipments around those three parameters rather than hoping to "slip through the cracks".

To dive deeper, see our HS code guide (essential to identify products excluded from the threshold), our customs duty calculation method, and our Incoterms guide to know who pays what when the threshold is crossed.

Frequently asked questions

Can I split a $1,500 order into two $800 shipments to avoid duties in the US?+

No. Deliberate order splitting to stay below the de minimis threshold is treated as customs fraud by US Customs and Border Protection (CBP). Multiple parcels from the same shipper to the same consignee on the same day (or within a tight window) are automatically aggregated: the full value is recomputed, duties are collected retroactively, and the importer of record can face a civil penalty up to twice the merchandise value. The same rule applies in the UK, Australia, and across the EU.

Does the de minimis threshold apply to every product?+

No. Goods subject to excise taxes (alcohol, tobacco, alcohol-based perfumes) are always excluded regardless of value. Regulated items (pharmaceuticals, non-approved cosmetics, counterfeit goods, firearms, cultural property) fall under separate regimes even below threshold. Merchandise targeted by anti-dumping or countervailing duties (Chinese steel, solar panels, e-bikes) also loses the de minimis benefit in most jurisdictions.

Does the threshold include shipping and insurance costs?+

It depends on the country. The US evaluates the threshold on the FOB product value alone (freight and insurance excluded), which is importer-friendly. The European Union, United Kingdom, Canada, and Japan use the CIF value (cost + insurance + freight), which can push a parcel over the limit once transport is added. Always verify the base used: a $140 FOB parcel may exceed the EUR 150 EU threshold once shipping is included.

What happens at the border if my value is just above the threshold?+

Duties are calculated on the full declared value, not just the excess amount. A $160 parcel entering the EU pays duty and VAT on the entire $160, not on the $10 above the $150 limit. This cliff behavior can cost tens of dollars for a handful of cents over the line. Experienced importers calibrate their declared values slightly below the threshold when supply conditions allow, without resorting to fraudulent splitting.

Does a de minimis exemption also waive VAT or sales tax?+

No, the two exemptions are separate. In the UK, duty is waived below GBP 135 but VAT (20%) is still collected by the seller or carrier. In the EU, duty is waived below EUR 150 but VAT applies from the first euro since 1 July 2021 (the old EUR 22 threshold is gone). In the US, Section 321 waives both duty and federal sales tax, but some states may assess sales/use tax after delivery. Never assume 'below threshold' means 'completely free'.

About the author

Marie Fontaine

Lead Customs Analyst · TRADE-COST

Marie leads customs research at TRADE-COST. She spent eight years in tariff classification and post-clearance audits before joining the product team to turn customs expertise into software.

Calculate your landed cost in 30 seconds

Duties, VAT, freight, insurance and margin — one form, one complete result.

Try the calculator

Related articles