US De Minimis Repeal 2026: Impact on Korean Cross-Border Sellers — The Tariff Game Changer

TL;DR

The US de minimis exemption has been effectively repealed in 2026. Low-value shipment duty exemptions are discontinued, more detailed data disclosure (HTSUS-10 codes) is required, and certain tariff-targeted goods lose de minimis eligibility. Korean sellers shipping directly to the US must recalculate logistics costs and completely overhaul pricing strategies.

The US De Minimis Era Is Over

As of April 2026, the biggest issue facing Korean sellers shipping directly to the United States is undoubtedly the repeal of the de minimis exemption. Until 2025, shipments valued under $800 enjoyed duty-free treatment, but that era has ended.

According to The Fashion Law, US Customs now requires more detailed data disclosure (including HTSUS-10 codes) in 2026, and de minimis eligibility for goods subject to specific tariff measures has been restricted. The fashion and retail sectors are taking the hardest hit.

Why does this matter? Because D2C business models centered on low-priced goods are completely disrupted. If you're a seller shipping directly to the US market through Naver Smart Store or Cafe24, you need to reassess your logistics costs and pricing strategy right now.

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What Changed with De Minimis in 2026? The Specifics

1. Low-Value Shipment Duty Exemption Discontinued

Until 2025, shipments valued under $800 were exempt from customs duties. But starting in 2026, this benefit has been effectively discontinued. Now, customs declaration and duty payment are required for all shipments.

2. HTSUS-10 Code Disclosure Mandatory

Previously, a simple product description was sufficient, but now you must accurately provide the HTSUS-10 code (US tariff classification code). This code consists of 10 digits and indicates the detailed category of your product. Incorrect coding can lead to customs delays or additional duty charges.

3. Restrictions on Goods Subject to Specific Tariff Measures

Chinese-origin products or goods subject to anti-dumping duties are completely restricted from de minimis eligibility. If you're a Korean seller reselling Chinese OEM products to the US, certificate of origin and duty payment are now mandatory.

Impact on Korean Sellers — Comparison Table

This table makes it clear: Logistics costs increase 15-30%, price competitiveness declines, and profitability is under pressure. Especially if you've been selling low-priced items in the $20-50 range, you now need to reconsider your entire business model.

How Should Korean Sellers Respond?

1. Recalculate Logistics Costs — Right Now

First, recalculate the actual logistics costs for your currently selling products. Calculate total costs including shipping fees, duties, and customs clearance fees, and determine how much margin remains compared to your existing prices.

For example, if you're selling $30 apparel:

- Shipping: $8

- Duty (average 10-15%): $3-4.5

- Customs clearance fee: $2-3

- Total additional cost: $13-15.5 (approximately 50% increase from before)

At this level, margins nearly disappear or you may even operate at a loss.

2. Adjust Pricing Strategy — Premiumization or Bundling

If low-price strategies no longer work, shift to premiumization or bundling strategies.

• Premiumization: Raise unit prices while strengthening product quality and branding to justify the increase

• Bundling: Sell multiple products together to increase average order value (AOV) and distribute shipping cost burden

For example, instead of selling a single product for $30, sell a 3-piece set for $80. Customers feel they're getting a discount, while you reduce shipping cost burden.

3. Utilize US Local Fulfillment Centers — FBA or 3PL

Instead of direct shipping, consider using US local fulfillment centers. By using Amazon FBA or 3PL (Third-Party Logistics) services, shipments are processed as domestic US deliveries, avoiding customs duty issues.

Of course, initial inventory costs and storage fees apply, but long-term benefits include faster shipping and higher customer satisfaction. Especially for products with high repurchase rates, local fulfillment centers are far more advantageous.

4. Accurately Identify HTSUS Codes

Failure to accurately provide HTSUS-10 codes leads to customs delays or additional duty charges. Search for the appropriate code for your products on the US International Trade Commission (USITC) website, and work with customs brokers to ensure accurate filing.

Fashion items especially have detailed classifications based on material, use, and design, so professional assistance is recommended for accuracy.

Key Takeaways

• 2026 US de minimis repeal requires customs declaration even for shipments under $800

• HTSUS-10 code disclosure mandatory complicates customs procedures; incorrect filing causes delays and additional costs

• Logistics costs increase 15-30%; low-price product business models face profitability pressure

• Response strategies: price increases, bundling, US local fulfillment centers, accurate HTSUS coding

• Long-term: strengthen branding and customer retention to shift from price competitiveness to value competitiveness

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FAQ

Q1. What is the de minimis exemption?

The de minimis exemption is a policy that waives customs duties on low-value imported goods below a certain threshold. The US exempted shipments under $800 from duties until 2025, but this benefit was effectively repealed starting in 2026. Now, customs declaration and duty payment are required for all shipments.

Q2. How do I find HTSUS-10 codes?

HTSUS-10 codes can be searched on the US International Trade Commission (USITC) website. Enter your product's material, use, design, and other details to find the corresponding code. However, for fashion items with complex detailed classifications, it's safer to get help from customs brokers or customs specialists. Incorrect code filing can lead to customs delays or additional duties.

Q3. How much will logistics costs increase?

An average increase of 15-30% is expected. Previously, you only needed to consider shipping fees and platform commissions, but now duties (average 10-15%) and customs clearance fees ($2-5) are added. For example, for a $30 product, total additional costs amount to about $13-15, which can significantly reduce margins or even result in losses.

Q4. Are Chinese OEM products also affected?

Yes, Chinese-origin products and goods subject to anti-dumping duties are completely restricted from de minimis eligibility. If you're a Korean seller reselling Chinese OEM products to the US, certificate of origin and duty payment are now mandatory. Chinese apparel, footwear, and accessories especially face high additional duty rates, which can significantly reduce price competitiveness.

Q5. Is it better to use US local fulfillment centers?

If your products have high repurchase rates and stable sales volumes, local fulfillment centers are advantageous. Using Amazon FBA or 3PL services processes shipments as domestic US deliveries, avoiding customs duty issues. While initial inventory costs and storage fees apply, faster shipping and higher customer satisfaction lead to long-term retention improvements. However, because initial investment costs are high, it's safer to decide after test marketing.

Conclusion

The 2026 US de minimis repeal is a major challenge for Korean sellers, but it's also an opportunity to strengthen branding and value competitiveness. Move beyond low-price strategies and try new approaches like premiumization, bundling, and local fulfillment centers.

Datarize provides CRM and analytics solutions for cross-border ecommerce sellers. Track customer segment repurchase rates, average order value (AOV), and retention data in real-time, and maintain customer loyalty even after price increases with AI-powered personalized marketing. Learn more at Datarize Blog.

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