What is De Minimis Value?
De minimis is a threshold that exempts imports from duty and or tax/VAT and differs by country. When goods get shipped to another country, the importing (or destination) country may wish to levy duties and taxes on those goods by collecting them from the person or company importing the products - as duties and taxes generate revenue for the importing country.
The process for assessing and collecting duties and taxes requires time and resources for the importing country, so it doesn’t make economic sense to spend time on low-value shipments. That is why each country sets its own de minimis value threshold for when it will assess duties and taxes on an import. Generally, the duty de minimis threshold will be different from the tax de minimis threshold.
The value threshold is what we call the de minimis value. Anything below this value is considered to be, “so small or trivial that the law does not refer to it and will not consider it.” The de minimis value may also be used to encourage or discourage certain trade/purchasing habits. Take note that many items can be received duty-free if the goods meet the rules of origin under free trade agreements.
Key Components:
Duty/Tax Exemption:
De Minimis Value is crucial because it determines whether a shipment will be exempt from duties or taxes. If the declared value of a package falls below the De Minimis threshold, it is often cleared without incurring these additional costs.
Varied Thresholds:
De Minimis Values vary from country to country. Different nations set their own thresholds, and these can also differ based on the type of goods being shipped.
E-commerce Impact:
With the rise of cross-border e-commerce, De Minimis Value has gained prominence. Many countries have adjusted their thresholds to accommodate the influx of low-value shipments associated with online retail.
Simplifying Clearance:
The primary purpose of De Minimis is to streamline customs clearance processes, especially for smaller shipments. It recognizes that imposing duties on every low-value item would be impractical and resource-intensive.
Real-world Scenario:
Let's consider a scenario where a country has a De Minimis threshold of $200. If a package's declared value is $180, it may be exempt from duties or taxes, promoting the seamless flow of international trade for lower-value shipments.
In the United States, imports are duty and tax-free due to the generous 800 USD de minimis. Then, there are other countries where the de minimis is not as straightforward as it appears, such as Australia’s 1,000 AUD de minimis. Australia’s de minimis is technically 1,000 AUD; however, if you sell over 75,000 AUD a year into Australia, you are required to register/remit GST and not via the customs clearance process.
De minimis values by country:
The majority of import countries have a de minimis amount for duty and tax. Below is a reference sheet of each country’s values for duty and tax de minimis.
Note: A de minimis value of 0 means that items of any value are subject to duty/tax.
COUNTRY | ISO | DUTY DE MINIMIS | TAX DE MINIMIS |
|---|---|---|---|
Afghanistan | AF | 0 USD | 0 USD |
Åland Islands | AX | 0 USD | 0 USD |
Albania | AL | 100 USD | 100 USD |
Algeria | DZ | 50,000 DZD | 50,000 DZD |
American Samoa | AS | 0 USD | 0 USD |
Andorra | AD | 220 EUR | 0 EUR |
Angola | AO | 100 USD | 100 USD |
Anguilla | AI | 0 XCD | 0 XCD |
Antigua & Barbuda | AG | 0 USD | 0 USD |
Argentina | AR | 0 USD | 0 USD |
Armenia | AM | 300 USD | 300 USD |
Aruba | AW | 0 USD | 0 USD |
Australia | AU | 1,000 AUD | 1,000 AUD |
Austria | AT | 150 EUR | 0 EUR |
Azerbaijan | AZ | 0 USD | 0 USD |
Bahamas | BS | 0 USD | 0 USD |
Bahrain | BH | 300 BHD | 300 BHD |
Bangladesh | BD | 1,000 BDT | 0 BDT |
Barbados | BB | 0 BBD | 0 BBD |
Belarus | BY | 22 EUR | 22 EUR |
Belgium | BE | 150 EUR | 0 EUR |
Belize | BZ | 0 BZD | 0 BZD |
Benin | BJ | 50 USD | 50 USD |
Bermuda | BM | 0 BMD | 0 BMD |
Bhutan | BT | 0 INR | 0 INR |
Bolivia | BO | 0 USD | 0 USD |
Bonaire, St.Eustatius & Saba | BQ | 100 USD | 100 USD |
Bosnia & Herzegovina | BA | 300 KM | 300 KM |
Botswana | BW | 0 BWP | 0 BWP |
Brazil | BR | 0 BRL | 0 BRL |
Brunei Darussalam | BN | 0 BND | 0 BND |
Bulgaria | BG | 150 EUR | 0 EUR |
Burkina Faso | BF | 0 USD | 0 USD |
Burundi | BI | 0 USD | 0 USD |
Cambodia | KH | 50 USD | 50 USD |
Cameroon | CM | 400 USD | 400 USD |
Canada | CA | 20 CAD | 20 CAD |
Cape Verde | CV | 200 USD | 200 USD |
Cayman Islands | KY | 0 USD | 0 USD |
Central African Republic | CF | 20 USD | 0 USD |
Chad | TD | 20 USD | 20 USD |
Chile | CL | 41 USD | 41 USD |
China, People's Republic of | CN | 0 CNY | 0 CNY |
Colombia | CO | 200 USD | 0 USD |
Comoros | KM | 0 USD | 0 USD |
Congo | CG | 12 USD | 12 USD |
Congo, Democratic Republic of the | CD | 0 USD | 0 USD |
Cook Islands | CK | 0 NZD | 0 NZD |
Costa Rica | CR | 50 USD | 50 USD |
Croatia | HR | 150 EUR | 0 EUR |
Cuba | CU | 0 USD | 0 USD |
Curaçao | CW | 50 ANG | 50 ANG |
Cyprus | CY | 150 EUR | 0 EUR |
Czech Republic | CZ | 150 EUR | 0 EUR |
Denmark | DK | 150 EUR | 0 EUR |
Djibouti | DJ | 0 DJF | 0 DJF |
Dominica | DM | 0 USD | 0 USD |
Dominican Republic | DO | 200 USD | 200 USD |
Ecuador | EC | 10 USD | 0 USD |
Egypt | EG | 0 EGP | 0 EGP |
El Salvador | SV | 0 USD | 0 USD |
Equatorial Guinea | GQ | 200 USD | 0 USD |
Eritrea | ER | 100 USD | 0 USD |
Estonia | EE | 150 EUR | 0 EUR |
Ethiopia | ET | 25 EUR | 25 EUR |
Falkland Islands (Malvinas) | FK | 0 USD | 0 USD |
Faroe Islands (Denmark) | FO | 300 DKK | 300 DKK |
Fiji | FJ | 200 FJD | 200 FJD |
Finland | FI | 150 EUR | 0 EUR |
France | FR | 150 EUR | 0 EUR |
French Guiana | GF | 150 EUR | 0 EUR |
French Polynesia (Tahiti) | PF | 0 USD | 0 USD |
French Southern Territories | TF | 0 USD | 0 USD |
Gabon | GA | 10 USD | 10 USD |
Gambia | GM | 100 USD | 100 USD |
Georgia | GE | 300 GEL | 0 GEL |
Germany | DE | 150 EUR | 0 EUR |
Ghana | GH | 5 USD | 0 USD |
Gibraltar | GI | 0 USD | 0 USD |
Greece | GR | 150 EUR | 0 EUR |
Greenland (Denmark) | GL | 80 DKK | 80 DKK |
Grenada | GD | 20 XCD | 0 XCD |
Guadeloupe | GP | 150 EUR | 0 EUR |
Guam | GU | 0 USD | 0 USD |
Guatemala | GT | 0 USD | 0 USD |
Guernsey | GG | 0 EUR | 0 EUR |
Guinea | GN | 15 USD | 15 USD |
Guinea-Bissau | GW | 100 USD | 0 USD |
Guyana | GY | 0 USD | 0 USD |
Haiti | HT | 0 USD | 0 USD |
Honduras | HN | 0 USD | 0 USD |
Hong Kong | HK | 0 USD | 0 USD |
Hungary | HU | 150 EUR | 0 EUR |
Iceland | IS | 0 ISK | 0 ISK |
India | IN | 0 INR | 0 INR |
Indonesia | ID | 3 USD | 0 USD |
Iran | IR | 50 USD | 50 USD |
Iraq | IQ | 0 USD | 0 USD |
Ireland | IE | 150 EUR | 0 EUR |
Isle of Man | IM | 135 GBP | 15 GBP |
Israel | IL | 500 USD | 75 USD |
Italy | IT | 150 EUR | 0 EUR |
Ivory Coast | CI | 20 USD | 20 USD |
Jamaica | JM | 50 USD | 0 USD |
Japan | JP | 10,000 JPY | 10,000 JPY |
Jersey | JE | 0 GBP | 0 GBP |
Jordan | JO | 100 JOD | 0 JOD |
Kazakhstan | KZ | 200 EUR | 200 EUR |
Kenya | KE | 0 USD | 0 USD |
Kiribati | KI | 0 USD | 0 USD |
Korea, Democratic People's Republic of | KP | 0 USD | 0 USD |
Korea, The Republic of | KR | 150 USD | 150 USD |
Kuwait | KW | 100 KWD | 0 KWD |
Kyrgyzstan | KG | 120 USD | 120 USD |
Laos | LA | 0 LAK | 0 LAK |
Latvia | LV | 150 EUR | 0 EUR |
Lebanon | LB | 0 USD | 0 USD |
Lesotho | LS | 0 USD | 0 USD |
Liberia | LR | 0 USD | 0 USD |
Libya | LY | 0 USD | 0 USD |
Liechtenstein | LI | 0 CHF | 0 CHF |
Lithuania | LT | 150 EUR | 0 EUR |
Luxembourg | LU | 150 EUR | 0 EUR |
Macau | MO | 0 MOP | 0 MOP |
Macedonia | MK | 22 EUR | 22 EUR |
Madagascar | MG | 20 USD | 20 USD |
Malawi | MW | 0 MWK | 0 MWK |
Malaysia | MY | 500 MYR | 500 MYR |
Maldives | MV | 6,000 MVR | 0 MVR |
Mali | ML | 20 USD | 20 USD |
Malta | MT | 150 EUR | 0 EUR |
Marshall Islands | MH | 0 USD | 0 USD |
Martinique | MQ | 150 EUR | 0 EUR |
Mauritania | MR | 25 USD | 25 USD |
Mauritius | MU | 500 MUR | 500 MUR |
Mayotte | YT | 150 EUR | 0 EUR |
Mexico | MX | 1,000 USD | 50 USD |
Micronesia, Federated States of | FM | 0 USD | 0 USD |
Moldova | MD | 300 EUR | 300 EUR |
Monaco | MC | 150 EUR | 22 EUR |
Mongolia | MN | 0 MNT | 0 MNT |
Montenegro | ME | 75 EUR | 0 EUR |
Montserrat | MS | 0 USD | 0 USD |
Morocco | MA | 30 USD | 30 USD |
Mozambique | MZ | 30 USD | 30 USD |
Myanmar | MM | 0 USD | 0 USD |
Namibia | NA | 0 USD | 0 USD |
Nauru, Republic Of | NR | 0 USD | 0 USD |
Nepal | NP | 0 NPR | 0 NPR |
Netherlands | NL | 150 EUR | 0 EUR |
New Caledonia | NC | 0 USD | 0 USD |
New Zealand | NZ | 1,000 NZD | 1,000 NZD |
Nicaragua | NI | 0 NIO | 0 NIO |
Niger | NE | 20 USD | 0 USD |
Nigeria | NG | 0 USD | 0 USD |
Niue Island | NU | 0 USD | 0 USD |
Norfolk Island | NF | 50 USD | 0 USD |
Northern Mariana Islands | MP | 0 USD | 0 USD |
Norway | NO | 350 NOK | 350 NOK |
Oman | OM | 0 USD | 0 USD |
Pakistan | PK | 0 USD | 0 USD |
Palau | PW | 0 USD | 0 USD |
Palestine | PS | 0 EGP | 0 EGP |
Panama | PA | 100 PAB | 100 PAB |
Papua New Guinea | PG | 250 PGK | 250 PGK |
Paraguay | PY | 20 USD | 20 USD |
Peru | PE | 200 USD | 200 USD |
Philippines | PH | 10,000 PHP | 10,000 PHP |
Pitcairn | PN | 0 USD | 0 USD |
Poland | PL | 150 EUR | 0 EUR |
Portugal | PT | 150 EUR | 0 EUR |
Puerto Rico | PR | 800 USD | 0 USD |
Qatar | QA | 0 QAR | 0 QAR |
Reunion | RE | 150 EUR | 22 EUR |
Romania | RO | 150 EUR | 0 EUR |
Russia | RU | 200 EUR | 200 EUR |
Rwanda | RW | 0 USD | 0 USD |
Saint Helena | SH | 0 USD | 0 USD |
Saint Pierre & Miquelon | PM | 0 USD | 0 USD |
Samoa | WS | 0 SDG | 0 SDG |
San Marino | SM | 22 EUR | 0 EUR |
Sao Tome & Principe | ST | 0 USD | 0 USD |
Saudi Arabia | SA | 1,000 SAR | 0 USD |
Senegal | SN | 30 USD | 0 USD |
Serbia | RS | 0 RSD | 0 RSD |
Seychelles | SC | 0 SCR | 0 SCR |
Sierra Leone | SL | 0 USD | 0 USD |
Singapore | SG | 400 SGD | 400 SGD |
Sint Maarten | SX | 100 USD | 0 USD |
Slovakia | SK | 150 EUR | 0 EUR |
Slovenia | SI | 150 EUR | 0 EUR |
Solomon Islands | SB | 0 USD | 0 USD |
Somalia | SO | 0 USD | 0 USD |
South Africa | ZA | 0 ZAR | 0 ZAR |
South Sudan | SS | 0 USD | 0 USD |
Spain | ES | 150 EUR | 0 EUR |
Sri Lanka | LK | 0 LKR | 0 LKR |
St. Barthelemy | BL | 0 EUR | 0 EUR |
St. Kitts and Nevis | KN | 0 USD | 0 USD |
St. Lucia | LC | 0 USD | 0 USD |
St. Martin | MF | 150 EUR | 0 EUR |
St. Vincent | VC | 0 XCD | 0 XCD |
Sudan | SD | 0 USD | 0 USD |
Suriname | SR | 0 XCD | 0 XCD |
Svalbard | SJ | 0 USD | 0 USD |
Swaziland | SZ | 0 USD | 0 USD |
Sweden | SE | 150 EUR | 0 EUR |
Switzerland | CH | 0 CHF | 0 CHF |
Syria | SY | 50 SYP | 0 SYP |
Taiwan | TW | 2,000 TWD | 2,000 TWD |
Tajikistan | TJ | 0 USD | 0 USD |
Tanzania | TZ | 0 TZS | 0 TZS |
Thailand | TH | 1,500 THB | 1,500 THB |
Timor-Leste | TL | 0 USD | 0 USD |
Togo | TG | 400 USD | 400 USD |
Tokelau | TK | 0 USD | 0 USD |
Tonga | TO | 0 USD | 0 USD |
Trinidad and Tobago | TT | 0 TTD | 0 TTD |
Tunisia | TN | 0 TND | 0 TND |
Turkey | TR | 0 EUR | 0 EUR |
Turkmenistan | TM | 0 USD | 0 USD |
Turks and Caicos Islands | TC | 0 USD | 0 USD |
Tuvalu | TV | 0 USD | 0 USD |
Uganda | UG | 0 USD | 0 USD |
Ukraine | UA | 150 EUR | 0 EUR |
United Arab Emirates | AE | 300 AED | 0 AED |
United Kingdom | GB | 135 GBP | 0 GBP |
United States Minor Outlying Islands | UM | 0 USD | 0 USD |
United States | US | 800 USD | Varies |
Uruguay | UY | 1 USD | 1 USD |
Uzbekistan | UZ | 1,000 USD | 1,000 USD |
Vanuatu | VU | 0 USD | 0 USD |
Vatican City | VA | 0 EUR | 0 EUR |
Venezuela | VE | 100 USD | 100 USD |
Vietnam | VN | 1,000,000 VND | 0 VND |
Virgin Islands (British) | VG | 0 USD | 0 USD |
Virgin Islands (U.S.) | VI | 0 USD | 0 USD |
Wallis and Futuna | WF | 200 XPF | 0 XPF |
Western Sahara | EH | 0 USD | 0 USD |
Yemen | YE | 0 YER | 0 YER |
Zambia | ZM | 50 USD | 50 USD |
Zimbabwe | ZW | 10 USD | 10 USD |
How does de minimis affect my business?
As merchants grow their international business, they need to understand the barriers an international shopper faces when purchasing from a foreign website. Many of these barriers involve rules and regulations that do not apply domestically.
De minimis value is an excellent example of one of these foreign regulations. De minimis value significantly impacts eCommerce. This is because B2C orders are typically a much lower value than B2B, and a larger percentage of your shipments will clear duty and tax-free to specific countries. Shipments below the de minimis value will clear faster and provide an opportunity to sell into certain markets more competitively.
As the de minimis value varies greatly by country, it’s worth understanding the markets you ship to or want to target. De minimis example – Canvas shoes with rubber sole, 175 USD:
Destination | HS codes and duty & tax rates | Foreign value | Duty de minimis | VAT/tax de minimis | Resulting impact |
United Kingdom | 64.0411.00 / 16.9% Duty / 20% VAT | 134.24 GBP | <135 GBP | > 0 GBP | Duty free |
France | 64.0411.00 / 16.9% Duty / 20% VAT | 154.51 EUR | >150 EUR | >0 EUR | Duty and Tax due |
Australia | 64.0411.00 / 5% duty / 10% GST | 246.69 AUD | <1,000 AUD | <1,000 AUD | Duty and Tax free |
Conclusion:
De minimis values are important factors to consider when shipping internationally. By understanding the thresholds set by different countries, you can optimize your shipping strategy, and be clear with your customers to avoid unexpected complaints regarding duties and taxes.
Note: Import duties, taxes, VAT, and any other fees levied by Customs are not part of the shipping costs charged by UrShipper.
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