Great news for private label sellers!
Starting from March 10, 2016, imports of merchandise up to USD 800 will be allowed into the United States free from duties and taxes.
What is de minimis tax rule?
Duties and taxes, ‘de minimis’ refers to imports of negligible value. I.e. when the FOB or the CIF value fails to reach a minimum threshold for the duty and/or tax to be applicable to an import. De minimis amounts are set at a country level by the respective Customs authority. It can be set as a minimum customs value for duties and taxes to apply, or as a minimum collectible duty or tax amount.
The Trade Facilitation and Trade Enforcement Act of 2015 raises the de minimis threshold for low value shipments. Section 901 amends the Trade Tariff Act of 1930 (19 U.S.C. § 1321(a)(2)(C)) to raise the limit on amount of exemption from USD 200 to USD 800. This amendment applies to merchandise imported or withdrawn from the warehouse for consumption on or after the 15th day after the date of enactment of the Act.
The President of the United States signed a new bill to increase the U.S. de minimis level on international shipments inbound to the U.S. from $200 per shipment to $800 per shipment*.
The enactment date was February 24, 2016.
This represents a significant step in facilitating trade, reducing the costs borne by importers and accelerating the delivery of merchandise. In particular, this change will benefit importers by reducing customs procedures required as well as the applicable duties or taxes that would be collected. This change also permits easier movement of returns back to the U.S.
Why is this good for Amazon sellers?
If you are an Amazon private label seller then for low value shipments coming from outside of the US you won’t have to pay importing duties and taxes. Bascially if your shipment is lower than 800$ you will be exempt from paying importing taxes.
This means that if you want to get your feet wet with Amazon private label business model with low number of units you won’t have to pay additional taxes for importing the goods into the US. Previously, the limit was 200$.
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