Goodbye, De Minimis. Hello, Local Fulfillment. By KARIN STROM, Vice President, Proxima The elimination of the U.S. de minimis
Dunkerton noted the chaos of managing mixed-origin shipments but said the challenge is manageable. Meanwhile, Chinese ecommerce giant Temu (owned by PDD Holdings) has adapted quickly by transitioning to U.S.-based sellers and warehouses, effectively shifting to a local fulfillment model to reduce the new tariffs. This agility underscores a broader move toward supply chain localization and regulatory adaptation. Retailers investing in bonded warehouses, local fulfillment centers, and nearshoring are proving more resilient amid shifting trade dynamics. Those able to localize operations and optimize tariff strategies are best positioned to remain competitive in this evolving landscape.
Asia. In response, many are establishing U.S.-based subsidiaries to import goods at a wholesale or transfer price, typically lower than retail, thereby reducing the tariff burden and protecting margins. Proactive British retailers have already moved to secure warehousing and distribution networks in the United States, giving them a competitive edge as domestic storage becomes scarce and costly. Some retailers have temporarily paused shipments from China due to unprofitability under the new rules. Additionally, many are conducting in-depth reviews of their rules of origin, complicating processes for industries like fashion and electronics, where inputs come from multiple countries. For example, Superdry CEO Julian
exemption—which allowed duty- free imports under $800—is forcing global retailers to rapidly reassess their supply chain strategies. This policy shift significantly affects sectors like fast fashion and electronics that rely on direct-to-consumer (DTC) models from
Operating from a U.S.-based warehouse is one ecommerce strategy for global e-tailers.
Overhauling Ecommerce Operations By CRAIG REED, General Manager, Cross Border, Avalara
More declarations will inevitably lead to higher clearance times and delays at distribution hubs. The added administrative burden is also expected to increase shipping costs as carriers and freight forwarders adjust pricing to account for more complex customs requirements. Compliance complexity is another looming challenge— businesses must ensure accurate classification and documentation to prevent penalties or unexpected tariffs. This will require businesses to invest in customs brokerage services and
Looking ahead to a world with repealed de minimis rules, ecommerce fulfillment models are set for a shake-up of customs- fueled delays, compliance hurdles, and increased costs. These emerging factors threaten to shrink profit margins, forcing companies to reevaluate their sourcing strategies.
The New Reality for Low-Value Imports
In fiscal year 2024, Customs and Border Protection (CBP) processed more than 1.36 billion de minimis shipments, reflecting businesses’ reliance on duty-free,
Global ecommerce giants like Temu and Shein had relied on the de minimis rule to reduce costs by bypassing tariffs.
automated trade compliance tools.
goods now require formal customs entries, Harmonized System codes (a standardized numerical method of classifying traded products), and accurate duty calculations, CBP would need to process a much higher volume of declarations.
low-value imports. For decades, the de minimis tax exemption was the silent workhorse of global trade—keeping cross-border logistics humming by allowing imports under $800 to bypass customs and duties in the United States. Should additional international
Rethinking Logistics Processes With the de minimis exemption removed, every shipment, regardless of its value, now incurs additional duties and requires complete customs
62 Inbound Logistics • June 2025
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