De Minimis Exemption: Can You Still Ship Direct From Korea?
Key takeaways
As of October 2026, you can still ship from Korea straight to US customers, but every commercial parcel pays duty. The $800 de minimis exemption has been suspended since August 29, 2025, and Korean goods now pay their MFN rate or 12.5%, whichever is higher. A US warehouse does not lower that rate.
The $800 duty-free rule is on hold. What direct parcels pay now, and when a US warehouse makes more sense
Brands we work with often ask:
"Can we still ship orders from Korea straight to US customers?"
"Isn't anything under $800 duty-free?"
The short answer: yes, you can still ship direct. But every commercial parcel now pays duty. The de minimis exemption has been suspended for all countries since August 29, 2025. Since July 24, 2026, goods made in Korea pay at least 12.5%.
The bigger change is how each parcel is declared and charged.
1. Is the de minimis exemption still in effect? No. It is suspended, and the law repeals it on July 1, 2027
De minimis (Section 321 of the Tariff Act, 19 U.S.C. 1321) let shipments worth $800 or less clear US customs without duty.
Many articles say de minimis was "abolished". It was suspended: for China and Hong Kong on May 2, 2025, then for all countries from August 29, 2025 (CBP). The repeal in law comes later: Section 70531 of the One Big Beautiful Bill Act ends de minimis for commercial shipments on July 1, 2027. That is the statutory de minimis exemption end date.
| Date | What changed | Source |
|---|---|---|
| May 2, 2025 | Suspended for goods from China and Hong Kong | CBP |
| August 29, 2025 | Suspended for all countries (Executive Order 14324) | CBP |
| February 20, 2026 | Supreme Court strikes down the IEEPA tariffs; the same day, Executive Order 14388 keeps the suspension | CRS, White House |
| July 24, 2026 | Postal informal entry process (91 FR 37801) and Section 301 duty on Korean goods start | Federal Register, CBP |
| August 13, 2026 | Court of International Trade upholds the power to suspend de minimis (not a final outcome) | KPMG |
| October 22, 2026 | Some goods excluded from the postal process | CBP |
| July 1, 2027 | De minimis for commercial shipments repealed by law | OBBBA Sec. 70531 |
The Supreme Court's tariff ruling did not bring de minimis back. The suspension continues under an executive order and a CBP rule.
US-bound items sent through Korea Post fell more than 59% from August to September 2025, to 25,561 (Tax Times). Yet eBay says Korean sellers' US Standard shipments grew 58% over 2025 (Yonhap). Direct shipping did not end. It now carries duty.
2. What duty does a parcel from Korea pay? The higher of its MFN rate or 12.5%
Since July 24, 2026, goods made in Korea pay the higher of the item's normal US duty rate or 12.5%. Under CBP's guidance (CSMS #69326983), Korean goods carry a Section 301 duty. If the MFN rate (the Column 1 General rate in the US tariff schedule, or HTS) is below 12.5%, the two together come to 12.5%. If it is 12.5% or more, no Section 301 duty is added. Korea's government describes the same rule for Korea, Japan and Switzerland. Other countries pay different rates, so check the CBP guidance for yours.
For example, on a $100 item:
- MFN rate 0%: total 12.5%, duty $12.50
- MFN rate 5%: total 12.5%, duty $12.50
- MFN rate 16.5%: no Section 301 duty, total 16.5%, duty $16.50
For Korean goods, the de minimis tariff question comes down to one check: is your MFN rate above or below 12.5%? Our HTS code lookup guide shows how to find your rate.
Goods subject to Section 232 tariffs are not covered by this Section 301 duty, per the USTR fact sheet. As of October 2026, we could not confirm in official sources whether a KORUS FTA duty-free claim also removes the Section 301 duty. Do not build your price on zero duty.
Ignore 2025 figures still quoted online, such as a 15% rate for Korea or a $1.04 Korea Post fee.
3. Shipping by post (Korea Post EMS): who files, and when is duty due?
Since July 24, 2026, postal parcels pay duty through CBP's postal informal entry process. Key points from the Federal Register rule (91 FR 37801) and CBP's international mail guidance:
- Value: $2,500 or less. Above that, you need a formal entry (CBP FAQ).
- Filer: only the owner or purchaser, or a licensed US customs broker they designate.
- Bond: a basic importation and entry bond (single transaction or continuous) must be on file before entry.
- Data and payment: 10-digit HTS code, value, duty and tracking number for each item, with payment through Pay.gov by the 7th day of the month after arrival. For example, an April 15 arrival is due May 7.
- Late payment: interest, and CBP can suspend immediate release privileges.
Duty on postal parcels did not go away. The rule now says who files it and when it is due.
Korea Post's notice of July 20, 2026 covers parcels arriving from July 24, with its 2026 fees and process in the attachment. Check them before you ship, and ask whether a Korean seller can act as the filer.
What changes on October 22, 2026
From October 22, 2026, these goods can no longer use the postal informal entry process, according to CBP's international mail guidance, which had delayed enforcing the exclusions until then:
- Goods subject to duties under HTS Chapter 98 or Chapter 99
- Goods claimed duty-free under Chapter 98
- Goods claimed duty-free under a free trade agreement
- Goods subject to other federal agency (PGA) requirements
CBP's Section 301 guidance places the duty on Korean goods under a Chapter 99 heading (9903.05.xx). So after October 22, Korean goods may drop out of the postal process. As of October 2026, CBP has not said so directly. Before shipping by post after October 22, confirm with your carrier or a customs broker.
4. Courier shipments (DHL, UPS, FedEx): what you pay on top of duty
Couriers clear the goods and add fees on top of duty, which vary by carrier and contract. The public fee pages show:
- DHL Express: for a receiver without a DHL account, $17.50 or 2% of the duty, whichever is higher, plus a $1.34 regulatory charge per shipment (DHL US customs services, effective January 1, 2026).
- UPS: $12 when duty is not paid before delivery (UPS import fees). Brokerage fees are not listed, so ask for a quote.
- FedEx: check FedEx's fee pages or ask for a quote.
For example, a $100 item with a 0% MFN rate, shipped by DHL to a customer without a DHL account who pays the duty: duty $12.50 + duty processing $17.50 + regulatory charge $1.34 = $31.34 on top of the price, before shipping.
On a small parcel, the fees can cost more than the duty.
So decide who pays. With DDP (Delivered Duty Paid), the seller pays duty and fees up front. With DDU (Delivered Duty Unpaid), the customer pays on delivery, and a surprise bill often ends in a refused parcel. eBay has required DDP for US-bound items under $2,500 from Korean sellers since October 17, 2025 (eBay Korea notice).
5. Can you send goods as gifts or samples to avoid duty?
Only genuine gifts from one person to another qualify. Per CBP, gifts worth $100 or less enter duty-free ($200 from the US Virgin Islands, Guam or American Samoa). Goods acquired by purchase are not gifts (CBP FAQ). Korea Post also limits the gift exemption to items sent between individuals (Korea Post notice), so creator samples or company-branded boxes are unlikely to pass.
The 2025 law behind the 2027 repeal also sets civil penalties for misusing the Section 321 entry privilege: up to $5,000 for a first violation and up to $10,000 for each later one.
Calling a sale a gift risks a penalty far larger than the duty you save.
6. Direct parcels vs bulk import to a US warehouse: what changes?
Bulk import does not change the duty rate. It changes customs entries, per-parcel fees, speed and returns.
| Factor | Direct parcel from Korea | Bulk import to a US warehouse, then ship in the US |
|---|---|---|
| Duty rate | Higher of MFN or 12.5% | Same |
| Customs entries | One per parcel | One per inbound shipment |
| Who pays duty | Seller (DDP) or customer (DDU) | Your brand, as importer of record |
| Fees beyond duty | Clearance fee on every parcel (for example, DHL: $17.50 or 2% of duty for receivers without an account) | Clearance costs per shipment; no import duty on US delivery |
| Speed | International transit and customs on every order | Ships from inside the US, no customs wait |
| Returns | Hard and costly to send back to Korea | Back to the US warehouse, inspected and resold |
| Best fit | Testing demand, low volume | Growing orders, Amazon or retail plans |
The importer of record (IOR) is the company legally responsible for the entry and the duty. Formal entries above $2,500 also pay a merchandise processing fee (MPF): 0.3464% of entered value, $33.58 minimum, $651.50 maximum, per DHL's fee page.
Brands move stock to the US not to cut duty, but to change the cost per order and the delivery experience.
7. When to keep shipping direct, and when to move stock to the US
The deciding number is the total cost per parcel. Many brands test demand with direct shipping, then move stock to the US as orders build.
Direct shipping fits when:
- You are testing demand and orders are few
- Your price is high, so per-parcel fees are a small share
- You do not yet have a US importer of record or bond
A US warehouse fits when:
- Per-parcel fees start to exceed the duty as orders grow
- You plan to supply Amazon FBA or retailers
- The product has frequent returns or exchanges
Bulk import needs an importer of record, a bond and a customs broker. Our importer of record guide covers what to prepare, and what a 3PL is and when you need one covers timing.
Before you choose, answer these:
1. Is your product's MFN rate below or above 12.5%?
2. What does each parcel pay beyond duty, per a carrier quote?
3. Will you pay duty (DDP), or will your customer (DDU)?
4. At how many orders a month does bulk import become cheaper?
Wrap-up
De minimis is suspended now, and the law repeals it for commercial shipments on July 1, 2027. As of October 2026, every commercial parcel from Korea pays the higher of its MFN rate or 12.5%, plus its own clearance fees.
LinkONE supports brands entering the US with 3PL and logistics services: ocean and air freight between Korea and the US, import and customs compliance consulting, and a Fullerton, California warehouse that takes box-level small shipments, ships B2C orders and preps Amazon FBA inventory.
In the end, the question after de minimis is not whether you can ship, but which route costs less per order and works better for your customer.
Frequently Asked Questions
Is the de minimis exemption still in effect?
No. As of October 2026, the $800 de minimis exemption is suspended for all countries, as it has been since August 29, 2025 (CBP). The Supreme Court's February 20, 2026 tariff ruling did not restore it: Executive Order 14388 continued the suspension the same day. The law repeals de minimis for commercial shipments on July 1, 2027.
How much can you import to the US without paying duty?
As of October 2026, commercial goods have no duty-free threshold like the old $800 limit. Only genuine gifts from one person to another worth $100 or less enter duty-free ($200 from the US Virgin Islands, Guam or American Samoa), per CBP. Purchases and boxes sent by a company do not qualify as gifts.
What duty applies to a parcel shipped from Korea?
Since July 24, 2026, goods made in Korea pay the higher of their MFN rate or 12.5% (CBP CSMS #69326983). For example, a $100 item with a 0% MFN rate pays $12.50 in duty. Carrier clearance fees come on top and vary by carrier.
Who pays duty on a parcel sent by post?
Since July 24, 2026, the owner or purchaser of the goods, or a licensed US customs broker they designate, files the entry and pays duty through Pay.gov by the 7th day of the month after arrival (CBP international mail guidance). The filer needs a bond on file first. Check Korea Post's current fees and process in its July 2026 notice.
Does shipping in bulk to a US warehouse lower the duty?
No. Goods made in Korea pay the higher of their MFN rate or 12.5% whether they arrive as single parcels or in bulk (CBP CSMS #69326983). Bulk import cuts the number of customs entries and per-parcel fees, and delivery from a US warehouse to a US customer carries no import duty.
Sources
- CBP, Updated Global Guidance for International Mail (July 7, 2026)
- Federal Register, 91 FR 37801: Indefinite Suspension of the De Minimis Exemption for Mail Shipments and New Postal Informal Entry Process (June 24, 2026)
- CBP, CSMS #69326983: Section 301 Forced Labor Import Duties (July 23, 2026)
- White House, Executive Order 14388: Continuing the Suspension of Duty-Free De Minimis Treatment for All Countries (February 20, 2026)
Fees and rules in this post are as of October 2026.
-LinkONE-