Global Guidance for International Mail: New Duty Collection Rules Take Effect August 29, 2025

Effective August 29, 2025, U.S. Customs and Border Protection (CBP) will implement sweeping changes to the way duties are assessed and collected on international mail shipments. Under Executive Order 14324, Suspending Duty-Free De Minimis Treatment for All Countries, the long-standing $800 de minimis threshold will no longer apply to shipments arriving via the international postal network—regardless of country of origin.

This means that any goods entering through international mail, which would previously have been duty-free under 19 U.S.C. § 1321(a)(2)(C), will now be subject to duties based on the applicable International Emergency Economic Powers Act (IEEPA) tariff rate for the country of origin. The change applies globally and includes goods that, until now, were exempt under de minimis rules.

Two Duty Collection Options—But Only for a Limited Time

 Carriers and other CBP-approved “qualified parties” handling international postal shipments will need to choose one of two collection methods:

• Method 1 (Ad Valorem): Apply the effective IEEPA tariff rate to the declared value of each dutiable item.
• Method 2 (Specific Duty): Apply a flat per-item rate based on the country’s IEEPA tariff rate—$80 for countries under 16%, $160 for 16–25%, and $200 for over 25%.

If a shipment contains goods from multiple countries, the highest IEEPA rate will control. Importantly, Method 2 will only be available for six months; after February 28, 2026, all shipments must follow the ad valorem method.

Operational and Compliance Requirements

• Bonds: Carriers must hold an international carrier bond (Activity Code 3) and qualified parties must hold a basic importation and entry bond (Activity Code 1).
• Monthly Reporting: Duty payments and detailed shipment data—including country of origin for each item—must be submitted to CBP using a new Pay.gov International Mail Duty worksheet. The due date is no later than the 7th business day of the month following the month of entry.
• Formal vs. Informal Entries: CBP will discontinue preparing informal entries for covered mail shipments. Shipments over $2,500 still require a formal entry.
• Methodology Consistency: Only one duty methodology may be used per month, and switching requires 24-hour notice to CBP.

Economic Implications

These changes will have significant ripple effects for businesses relying on small-value international shipments. Costs will rise—not only from the duties themselves but from increased administrative burdens, bond requirements, and the risk of penalties for non-compliance. Freight forwarders and carriers will need to quickly adapt systems to capture accurate country-of-origin data, apply the correct duty methodology, and meet strict reporting timelines.

What’s Next?

With the first compliance date just weeks away, carriers and importers should review bond sufficiency, determine which duty methodology best fits their shipment profile, and establish internal procedures for reporting to CBP. Businesses that fail to comply face not only interest charges and debt collection actions but also potential suspension of immediate release privileges.

If you have questions about how EO 14324 impacts your shipping operations—or how to prepare for the February 2026 shift to ad valorem duties—our tariff lawyers team can help you evaluate your options and design a compliance strategy that works for your business. Fell free to contact us to schedule a consultation.