Customs
De Minimis Threshold
The shipment value below which a country waives import duty and sometimes tax, allowing low-value consignments to clear with minimal formality.
In depth
De minimis thresholds exist because collecting small amounts of duty costs more than the duty is worth. The level varies enormously between countries, and the treatment of duty and of consumption tax often differs — a shipment can be duty-free but still liable for VAT or GST. Thresholds have been tightening as governments respond to cross-border e-commerce volumes, and several major markets have removed or reduced them in recent years. Splitting a consignment to stay under a threshold is generally treated as evasion rather than planning.
Key points
- Value below which duty, and sometimes tax, is waived
- Levels vary widely and are being tightened in many markets
- Duty relief and tax relief often have different thresholds
- Deliberately splitting shipments to stay under it is evasion