CBP Hits $1 Billion in Duties Collected as De Minimis Loophole is Closed

U.S. Customs and Border Protection (CBP) recently announced a significant financial milestone, having collected over $1 billion in duties since the federal government initiated the closure of the de minimis loophole earlier this year. This effective policy change has led to increased revenue from previously duty-free low-value shipments entering the U.S.

Impact of the De Minimis Change

The impressive revenue figure resulted from over 246 million low-value shipments that once entered the United States without duties. The phased-out exemption began on May 2, 2025, with shipments from China and Hong Kong losing their duty-free status first. By August 29, the full elimination of the de minimis exemption was implemented globally, allowing CBP to collect duties on all low-value imports.

“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 and Safety

The cessation of the de minimis exemption has also strengthened enforcement measures. Since the rule change for shipments from China and Hong Kong, there has been an 82% increase in seizures of unsafe and non-compliant low-value goods. These seizures have included counterfeit products, narcotics, faulty electronics, and items containing hazardous chemicals.

“With increased visibility into data for these low-value shipments, we’re better equipped to detect and disrupt criminal networks involved in smuggling drugs, counterfeits, and other illegal items—making our country safer,” stated Susan S. Thomas, Acting Executive Assistant Commissioner for CBP’s Office of Trade.

Future of U.S. Imports

Despite the stricter regulations, the influx of packages into the U.S. continues to rise as importers adapt to the new requirements. CBP’s actions align with a broader initiative to enforce trade rules, ensure obligations are met, and protect domestic manufacturers.

As the landscape of trade evolves, American businesses and consumers can expect a more regulated environment that prioritizes safety, compliance, and fair competition.