The Big Change: No More De Minimis for China
For years, US-bound parcels under $800 slipped in duty-free under Section 321 de minimis. That loophole is gone for China-origin goods. As of May 2, 2025, the de minimis exemption was removed for shipments from mainland China and Hong Kong, and it was extended to all countries in 2027. In practice, every consolidated shipment from China to the US now needs a formal or informal entry, and you pay duty on the merged value. This is the single most important fact for any importer still quoting the old “$800 free” rule: it no longer applies to your China consolidation.
What Formal Entry Actually Costs You
Consolidation does not remove US duty, but it changes how the fixed costs land. On a formal entry you pay the Merchandise Processing Fee (0.3464 percent of value, minimum $32.71) and the Harbor Maintenance Fee (0.125 percent, no minimum). Those fees are per shipment, not per supplier, so merging ten small parcels into one consolidated entry spreads the minimums across all of them instead of multiplying them ten times. The duty itself depends on the HTS code: many consumer goods carry the base Most-Favored-Nation rate, but a large share of China-origin categories also carry Section 301 tariffs of 7.5 to 25 percent on top. Steel, aluminum, and related products can face Section 232 duties as well.
How Consolidation Lowers the Per-Unit Landed Cost
| Scenario | Entries filed | MPF minimums | Freight rate |
|---|---|---|---|
| Ten suppliers, shipped separately | 10 | 10 x $32.71 = $327 | Retail per-kilo |
| Ten suppliers, consolidated | 1 | 1 x $32.71 = $33 | Negotiated volume |
The table is the whole argument in one glance. You cut the fixed filing cost roughly tenfold and you unlock a better freight rate because you are shipping one heavier, denser consolidated lot instead of ten light ones. The duty bill is the same either way, so consolidation attacks the costs you can actually control.
Clearance Documents You Need Ready
For a smooth US entry, have these lined up before the vessel or flight lands: a commercial invoice showing the total consolidated value and per-item HTS codes, a packing list that matches the consolidated carton count, and an Importer of Record with a valid IRS or EIN. If you are the IOR, register with the ACE system so you can file. Missing or mismatched HTS codes are the most common cause of clearance holds, and a hold turns a three-day clearance into a two-week one.
Air vs Sea to the US
Air to a US gateway (LAX, JFK, ORD) runs three to seven days door-to-warehouse but costs several times more per kilo. Sea to Los Angeles or Long Beach is cheaper by an order of magnitude but adds eighteen to thirty-five days of transit plus terminal handling. For most consolidation clients, a split works best: air for the urgent top-up, sea for the bulk. Our consolidation service lets you mix both in one warehouse account, and our air vs sea breakdown shows the math per weight band.
Common Mistakes That Trigger US Customs Holds
The repeat offenders: under-declared value to dodge duty (now pointless since de minimis is gone and it invites penalties), vague product descriptions like “gift” or “samples” that force a classification guess, and mismatched weights between the invoice and the actual carton. None of these save money, and all of them cost time. Declare the real value, name the real product, and let consolidation handle the efficiency side.
DDP Shipping: Zero Customs Worry + Legal Cost Optimization
After the end of de minimis for China-origin goods, the biggest operational headache for many importers is no longer just the duty rate—it is the administrative burden of formal or informal entry, HTS classification, broker coordination, and the risk of holds.
Delivered Duty Paid (DDP) removes that burden entirely.
Under a true DDP arrangement, your consolidation partner (or their licensed U.S. broker) acts as the Importer of Record or coordinates the entry on your behalf. They:
- Classify every line item with the correct HTS code
- Pay all applicable duties (MFN + Section 301 + any Section 232 or other additional tariffs)
- Cover Merchandise Processing Fee and Harbor Maintenance Fee
- File the entry in ACE
- Clear the shipment and deliver it to your U.S. warehouse or final destination
You receive one all-in invoice that already includes freight + duties + fees. No surprise customs bills, no last-minute document chases, and no risk of a hold turning a three-day clearance into two weeks.
Frequently Asked Questions
Is anything from China still duty-free under $800?
No. The de minimis exemption for mainland China and Hong Kong ended May 2, 2025. Every shipment needs an entry and pays applicable duty and tariffs.
Does consolidation reduce my US tariff bill?
It does not lower the duty rate, but it cuts the fixed per-entry fees and improves your freight rate, which together can outweigh the tariff on smaller shipments.
Who files the US entry?
A licensed customs broker or the Importer of Record. Freight2me coordinates the broker handoff so the consolidated entry is filed against one master invoice, not ten separate ones.
How long does US clearance take after arrival?
Typically one to three days with clean documents. Holds from missing HTS codes or value mismatches can stretch it to two weeks, so document accuracy matters more than ever.