End of De Minimis: Insights for Manitoban Exporters (2025)

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Tamir Maharaj

Trade Advisor

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On August 29, 2025, the U.S. ended its de minimis exemption for most countries, including Canada. Before, many Canadian sellers could ship orders under USD $800 to the U.S. without duty and with very little paperwork. That era is over.

In 2024, the U.S. processed about 1.36 billion de minimis shipments; now, many of those parcels will face duty and complete customs steps [Gateway Tax]. Effective Aug. 29, low‑value non‑postal shipments must clear customs with proper entries and duties where applicable [EDC; GHY].

What changes for you

Higher costs:
Many products will now face duties of roughly 5–25% (varies by product), raising landed costs and final prices [Gateway Tax].
More paperwork:
Every shipment needs correct HS/HTS codes, clear descriptions, valid values, and proper entries [EDC; MNP].
Slower delivery and surprise fees:
Extra customs checks can add time. If you don’t collect duty up front, customers may be asked to pay for delivery, which can cause refusals and returns [EDC].

What changed:

Effective date: August 29, 2025 [GHY].
All non-postal shipments must be entered in ACE by an authorized filler
- CBP’s ACE now rejects Section 321 manifests and Entry Type 86 EDI cargo releases; businesses relying on EDI or the Truck Manifest Trade Portal for Section 321 entries must adapt and find a new compliant method for declaring these shipments to US Customs. This likely means exploring other ACE filing options. [GHY].
- Canadian businesses may want to invest in training or hire customs brokers to comply with ACE filing and bond requirements.
Bonds are now required: Basic importation and entry bonds are needed even for shipments under $2,500 [GHY].
- The bond requirements, ACE compliance, and potential changes in carrier fees will likely increase the cost of exporting low-value goods to the U.S.
Postal shipments (temporary): Duties are collected by carriers/qualified parties using either:
- Flat rate per item through Feb 28, 2026: $80 (IEEPA tariff < 16%), $160 (16–25%), $200 (> 25%) [GHY].
- Ad valorem method becomes the default by Feb 28, 2026 (duty based on value and country‑of‑origin rate) [GHY].

Consider a different distribution model.

Many Manitoba firms will save money and time by bulk shipping to a U.S. warehouse or 3PL, clearing customs once, and then shipping domestically to customers. This spreads clearance costs across more units, shortens delivery times, and makes returns easier [EDC; MNP]. If you relied on cross‑border drop shipping, compare direct B2C from Manitoba versus consolidated B2B into a U.S. 3PL and choose the best total cost and service [EDC; MNP].

Remember CUSMA

Duty‑free treatment under CUSMA can still apply for qualifying Canadian‑origin goods, but it isn’t automatic. When using CUSMA, ensure your product qualifies under the rules of origin by classifying it correctly, confirming the origin criterion (including any required regional value content), and maintaining clear supplier and production records. You don’t need a specific government “certificate” form, but you do need a written certification of origin with all required data elements; it can be on an invoice or a separate document and may be completed by the exporter, producer, or importer, for a single shipment or as a blanket certification (up to 12 months). [Gov.Canada]

What to do now

Get your data right:
Use correct 10‑digit HS/HTS codes, true origin, and clear descriptions. Keep records organized; errors cause delays, penalties, or holds [MNP; EDC].
Price for the new reality:
Recalculate landed costs (duty, brokerage, clearance fees). Decide DAP vs. DDP; DDP improves customer experience, but you pay duties [Gateway Tax].
Choose the right entry/bond strategy:
Work with a U.S. customs broker to file informal/formal entries via ACE. Consider a continuous bond if you have frequent shipments [GHY].
Reconsider postal vs. express:
Postal routes may apply the temporary flat‑rate duty ($80–$200 per item), which can be costlier than ad valorem for some low‑value goods. Compare total cost and speed using express integrators with brokered entry [GHY; Gateway Tax].
Reduce duty where possible:
Classify correctly, explore CUSMA‑compliant sourcing, and prioritize products with lower duty rates [MNP].