For years, the $800 de minimis exemption let low-value parcels from China enter the US duty-free with almost no paperwork. That channel is gone. As of August 29, 2025, the United States suspended de minimis treatment for all countries, so every commercial shipment now requires a formal customs entry and payment of all applicable duties, including Section 301 tariffs on Chinese-origin goods.
This article explains what changed, how the tariff layers stack, and the practical filing steps a Temu seller (especially semi-managed and local stocking sellers) needs to get right so a misclassified HTS code does not trigger penalties or a seized shipment.
What Changed on August 29, 2025
Before that date, a parcel under $800 could enter under Section 321 with minimal documentation. After the suspension, all imports regardless of value are subject to applicable duties, taxes, and fees. Postal shipments under $800 must have duties prepaid. Goods covered by Section 201, 232, or 301 trade-remedy programs are presumptively ineligible for any de minimis relief.
The operational shift is large. Shipments that previously needed only an informal entry now require a commercial invoice, HTS classification, and Section 301 determination. CBP added a "Section 301 goods" indicator in its ACE system that carriers must flag at manifest submission.
How the Tariff Layers Stack
Section 301 duties are not a replacement for normal import duty. They stack on top of the most-favored-nation (MFN) rate that already applies. A Chinese-made item with a 5 percent MFN rate and a 25 percent Section 301 rate owes 30 percent total at the border.
Key Section 301 rates in effect on Chinese goods:
- List 3 (many textiles and apparel): 25 percent
- List 4A (apparel, footwear, many toys, some consumer electronics): 7.5 percent, though some List 4A entries were restored to 15 percent in 2024 to 2025; confirm the rate against your specific 10-digit HTS code. Note: phones, laptops, and game consoles sit on List 4B at 15 percent, not List 4A.
- Electric vehicles: 100 percent
- Semiconductors: 50 percent
- Lithium-ion batteries: 25 percent
- Steel and aluminum (Section 232, stacking with 301): 25 percent plus the 301 layer
For context, apparel facing List 3 (25 percent) plus the MFN rate (often 10 to 20 percent) plus any surcharge can reach total duties of 30 to 50 percent. The de minimis end hit fast-fashion and direct-from-China platforms hardest because their model relied on the sub-$800 loophole.
The HTS Code Is the Whole Game
Your Harmonized Tariff Schedule code determines which layer applies. A single digit error can mean the difference between 7.5 percent and 25 percent on the Section 301 layer alone. Misclassification done to avoid duty exposes the importer to civil penalties under 19 U.S.C. 1592, scaling by culpability: fraud up to the domestic value of the goods, gross negligence up to four times unpaid duties, negligence up to two times unpaid duties. Prior disclosure before a formal CBP investigation sharply reduces the penalty.
Steps to file correctly:
1. Determine the 10-digit HTSUS code for your product, not just the chapter heading. The USTR provides a search tool to check coverage and rate.
2. Check for an active exclusion. The USTR runs a product-specific exclusion process. A late-2025 batch extended 178 exclusions through November 9, 2026 under specific HTS headings, and further extensions are routine; treat the date as a checkpoint, not a fixed expiry, and verify against the current Federal Register language. An exclusion covers a narrow product description, not the whole heading, so match your actual goods against the notice text.
3. File the correct Chapter 99 code when an exclusion applies, so the Section 301 duty is not assessed.
4. Use a licensed customs broker for formal entry unless you self-file. Brokers handle ACE sequencing automatically; self-filers must respect entry-summary order.
5. Reconcile after liquidation. If an exclusion is granted retroactively, file a Post Summary Correction (at least 15 days before liquidation, generally within 300 days) or a formal protest within 180 days after liquidation to recover overpaid duty.
What This Means for Temu Sellers
- Consignment sellers ship to Temu's domestic warehouse; Temu generally handles the import entry as the importer of record. Your exposure is indirect, through the wholesale price Temu offers after it absorbs duty.
- Semi-managed and local-stock sellers who move their own inventory across the border carry the entry responsibility (or their broker does, on their behalf). A wrong HTS code on your shipment is your liability, not the platform's.
- Model landed cost now. The effective landed-cost increase for low-value shipments can range from 15 to 50 percent depending on category and applicable list. Price accordingly or margin disappears.
The de minimis end does not make Temu unworkable. It just turns duty modeling from a nice-to-have into a requirement.
What You Can Control
- Your HTS accuracy. Audit classifications before shipping, not after a penalty.
- Your exclusion check. Monitor Federal Register notices; importers who track unliquidated entries and new exclusions recover overpayments others leave behind.
- Your sourcing mix. Splitting supply between China and lower-tariff alternatives (Vietnam, India, Mexico) changes the stack. This is a structural decision, not a quick fix.
For a per-unit landed-cost and profit model that layers Temu's fees on top of duty, the Temu profit calculator helps you see whether a given HTS path still clears margin.
FAQ
When did the US end de minimis for Chinese goods?
The targeted China and Hong Kong elimination took effect May 2, 2025. The global suspension of de minimis for all countries followed on August 29, 2025, per White House and CBP actions. After August 29, 2025, every commercial shipment requires formal entry and full duty payment regardless of value.
Do Section 301 tariffs stack on top of normal duty?
Yes. Section 301 is an additional layer on top of the MFN rate. A 5 percent MFN item with a 25 percent Section 301 rate owes 30 percent total. Section 232 steel and aluminum duties can stack with 301 as well.
What penalty applies if I use the wrong HTS code?
Misclassification to avoid duty falls under 19 U.S.C. 1592. Penalties scale by culpability: fraud up to domestic value, gross negligence up to four times unpaid duties, negligence up to two times. Prior disclosure before a CBP investigation materially reduces the penalty.
Can any products escape Section 301 duty?
Yes, through USTR product-specific exclusions. A late-2025 batch extended 178 exclusions under specific HTS headings, with further extensions routine; the specific expiry date rolls with each USTR Federal Register notice, so verify the current list on the USTR site before relying on one. Exclusions cover a narrow description, not the whole heading. File the correct Chapter 99 exclusion code to avoid the 301 assessment.
Who files the customs entry for Temu consignment sellers?
Temu generally acts as importer of record and handles the entry for consignment inventory. Semi-managed and local-stock sellers who move their own goods carry the entry responsibility, directly or through their broker. A wrong HTS code on your shipment is your liability.
Data sources: de minimis suspension dates per White House fact sheets and US Customs and Border Protection guidance (August 29, 2025 global suspension; May 2, 2025 China and Hong Kong elimination); Section 301 rates and stacking per LegalClarity Section 301 analysis citing USTR Federal Register notices and 19 U.S.C. 1592 penalty statute; landed-cost impact ranges per US Tariff Rates de minimis tracking and trade-coverage reporting. Tariff rates change through USTR exclusion and investigation actions; verify your product's current HTS rate through the USTR search tool and CBP before filing.
