Navigating the U.S. De Minimis Shake-Up: A Simple Guide for UK eCommerce Retailers

The “it’s not that scary” breakdown:

• Collect HS codes / Country of Origin for your products
• Set your store up to collect the right amount
• Export as usual – completing the relevant paperwork with your carrier

The details:

As of 29 August 2025, the U.S. has scrapped its $800 de minimis exemption, meaning every parcel you send across the pond now faces import duties and taxes.
For small businesses, this change might seem like a bit of a hurdle, but fear not, it’s just a new process to follow and in the grand scheme of things, is quite easy to manage.

Let’s unpack this change and show you how to keep your U.S. customers looked after, while boosting your business – because there’s plenty of your competitors that are bowing out because they can’t be bothered.

What’s Changed with U.S. Customs?

Previously, goods valued under $800 sailed into the U.S. duty-free, a fantastic perk for UK retailers selling everything from quirky stickers to stylish scarves on platforms like Etsy or Shopify. Now, every shipment over $100 (about £75) is subject to customs duties.

Shipments are taxed based on the product’s Harmonised Tariff Schedule (HTS / HS) code and country of origin. It’s a new hurdle, but with the right approach, not one that needs to cause too much of a headache.

It’s important to note that these tariffs are based on Country of Origin (Which you might see written as CoO), not country of shipping. Just because you stock and sell a product from the UK, it doesn’t mean that it was manufactured here. A jumper knitted in India still has India as the Country of Origin for Delivery Duty Paid purposes, not the UK.

What do you need to do?

For all of your products, you should have a Country of Origin but it’s a good idea to put this as a field in your product description, as well as the HS code.
If it’s a field in the product listing, this can easily be picked up by whatever shipping integration you might be using.

If you’re using one of the big companies for your shipping, such as Royal Mail, DPD, DHL or FedEx, then they have already launched their own methods to provide DDP (Delivery Duty Paid) labels and paperwork for your shipments.
All you need now is to integrate it into your online shop. For Magento, Shopify, Woocommerce and most others, these all exist and can be tied in quite easily.
If you don’t fancy tackling it yourself, then we at Acquire Commerce are happy to help.

These integrations will allow you to generate the right charges to display for your customers at the point of checkout and ensure you have all the information you need to pass to your shipping provider.

What is it calculated on?

It’s calculated on every shipment, as a total, worth over $100 at the time of presentation to the border.
The rate is calculated on each item in the shipment, based on their CoO. So some items may be charged at different rates to others if they have a different country of origin.

What information do I need for my Delivery Duty Paid (DDP) forms?

Depending on the carrier, there are different variations of the process. All rely on you providing the following on the export paperwork:

Product Name
Product Description (short one)
HS Code
Country of Origin (CoO)
Product Value

What is a HS (Harmonised System) Code?

Harmonised System (HS) codes are commonly used throughout the import and export process for the classification of goods. The Harmonised System is a standardised numerical method of classifying traded products. It is used by countries around the world to uniformly identify and describe products for purposes such as assessing duties and gathering statistics.

HS codes are made up of 4 parts, adding up to 10 digits in total. Each part provides more detailed information about the product — starting with the ‘chapter’, which describes the industry, and ending with a country-specific code which describes the particular product.

The system of codes breaks down into 21 sections, and 98 chapters within those sections, describing different industries (such as Textiles, or Animal & Animal Products).

A list of common codes is available here: https://www.trade-tariff.service.gov.uk/a-z-index/a

You can get more information on HS codes and how to classify them here: https://www.gov.uk/guidance/using-the-harmonised-system-and-product-specific-rules-for-trade-between-the-uk-and-eu

Partner with Acquire Commerce for Success
This U.S. rule change is a challenge, but it’s also a golden opportunity to stand out with exceptional service. At Acquire Commerce, we’re passionate about helping small UK eCommerce businesses thrive in global markets. From optimising your shipping to ensuring compliance, we’re your trusted partner. Visit acquirecommerce.com to discover how we can keep your U.S. sales soaring!