De Minimis Tariff Exemption Now Paying Duties? Recover Them

The de minimis tariff exemption, codified under 19 U.S.C. 1321(a)(2)(C), allowed goods valued under $800 to enter the United States duty-free without formal customs entry. The Trump administration suspended this exemption for goods originating from China and Hong Kong, meaning shipments that previously entered duty-free are now subject to applicable tariff rates. Legal challenges to the suspension are ongoing, and the status of the exemption may continue to evolve.

The suspension of the de minimis tariff exemption has been applied specifically to goods originating from China and Hong Kong. Goods from other countries may still qualify for de minimis treatment under the $800 threshold. Importers should verify the country of origin for their shipments and consult current CBP guidance, as policy may change in response to ongoing legal and legislative developments.

Potentially yes, through duty drawback — a U.S. government program that refunds import tariffs when goods are subsequently re-exported, used in manufacturing for export, or destroyed. If your business has been paying duties on goods that later leave the U.S. in an eligible manner, you may qualify for a refund. Zollback offers a free eligibility assessment to determine whether your imports qualify.

Duty drawback is a legal U.S. Customs program that refunds up to 99% of import duties paid on goods that are later re-exported, incorporated into exported products, or destroyed under CBP supervision. As the de minimis tariff exemption suspension increases duty costs for importers, drawback becomes a key mechanism for recovering a portion of those new expenses — particularly for e-commerce companies, importers, and manufacturers with cross-border goods flows.

Traditional drawback providers using legacy manual processes typically take 9–12 months to process and file claims. Zollback's automated platform compresses this to 10–15 working days for end-to-end processing, from document ingestion through CBP filing. Actual refund deposit timing also depends on CBP processing time after submission.

Businesses that import goods and subsequently re-export them, incorporate them into products manufactured for export, return rejected merchandise, or destroy unsalable inventory may qualify for duty drawback. This includes manufacturers, retailers, distributors, and cross-border e-commerce companies. Businesses of all sizes can be eligible — Zollback is the first drawback platform designed to profitably serve companies under $50M in revenue, a segment historically underserved by legacy providers.