U.S. Ends De Minimis ($800) Exemption: What It Means for Ordering Medicines from India (2025 Update)

U.S. Ends $800 De Minimis Exemption: Importing Medicines from India (2025 Update)

Introduction

The U.S. government officially terminated the “de minimis” exemption—previously allowing duty‑free imports of goods valued under $800—on August 29, 2025, at 12:01 a.m. EDT, under Executive Order 14324 (www.hoganlovells.com).

This policy shift directly affects expats, NRIs, and U.S. patients who depend on affordable medicines from India. Shipments that once entered duty‑free are now subject to tariffs, stricter entries, and greater compliance requirements.

In this post, we’ll explore:

• What the end of de minimis entails for medicine imports

• How new U.S. import rules apply to prescription and OTC drugs

• The impact on NRIs and expats ordering medicines from India

• Practical steps for legal and efficient imports in 2025

  
  

What Was the De Minimis Exemption?

• Prior to August 29, 2025: The U.S. permitted duty‑free import of goods valued under $800, simplifying customs processes and benefiting personal and e‑commerce shipments.

• Effective August 29, 2025: This exemption has been eliminated for all countries, not just China and Hong Kong (www.hoganlovells.com). Shipments under $800 must now clear full customs.

  
  

Why Did the U.S. End the Exemption?

This change addresses broader policy goals:

• Security concerns: Low‑value parcels were used to smuggle illicit substances, including fentanyl. Nearly 98% of narcotics seizures by count were tied to de minimis shipments (U.S. Department of Homeland Security, The Verge).

• Revenue and fairness: The exemption enabled widespread tariff evasion and undercut U.S. manufacturers (AP News).

• Logistics integrity: The surge of low-value parcels overwhelmed customs systems and disrupted enforcement (Easyship).

  
  

Timeline & Transition Period

• May 2, 2025: De minimis ended for China and Hong Kong (www.hoganlovells.com).

• August 29, 2025: Exemption ends globally at 12:01 a.m. EDT (www.hoganlovells.com).

• First six months (through Feb 28, 2026): Postal shipments may use flat‑rate duties ($80–$200 per item) depending on origin; afterwards only ad‑valorem (value‑based) tariffs will apply (Wall Street Journal).

  
  

Revised Impact on Medicines Ordered from India

1. Customs Duties on Every Shipment

• Every medicine shipment from India now attracts import duties.

• For postal shipments, flat fees ($80–$200 per item) apply during the six‑month interim. Later, value-based tariffs kick in (Wall Street Journal).

• Careful planning and consolidation are more critical than ever to mitigate excessive costs.

2. Full Customs Filing Required

• Non‑postal shipments must be filed via the Automated Commercial Environment (ACE), require import bonds, and need licensed customs brokers (GHY International).

3. Postal Disruptions

• Hotspot: India Post has already temporarily halted certain parcel services to the U.S. in response to the regulatory uncertainty (The Australian).

• Courier services (DHL, FedEx, UPS) remain operational but costlier (The Australian).

4. Temporary Flat-Rate Tariffs

• During the initial six‑month grace period, a flat duty of $80–$200 per item is allowed for postal shipments (UKFT).

• After that, ad‑valorem rates based on HS codes will apply exclusively (Wall Street Journal).

Practical Steps for U.S. Patients & NRIs

Step	Action	Why It Matters
1. Budget for Duties	Expect flat‑rate or percentage‑based duties on every shipment.	Budget accurately post‑August 29.
2. Use Couriers Over Postal	DHL, FedEx, and UPS offer better customs support.	Postal services may be suspended or unreliable.
3. Bundle Orders	Send consolidated 2–3 month supplies.	Reduces per‑unit duty costs and broker fees.
4. Prepare Documents	Include prescription, invoice, HS code, country of origin—bonded courier or qualified party may need ACE entry.	Prevent seizure and expedite clearance.
5. Engage Qualified Parties	For postal shipments, use CBP‑certified parties (e.g., SafePackage, Zonos) to remit duties.	Compliance with new duty remittance rules (GHY International).
6. Monitor Updates	Stay current on CBP guidance and duty schedules.	Tariffs could adjust post-grace period.

Frequently Asked Questions (FAQ)

Q1: Can I still import prescription drugs from India for personal use?

A: Yes—but expect duties, full customs entry, ACE filings, and required documentation (prescription + invoice + HS code).

Q2: How much will import duty cost in 2025?

A:

• Postal shipments (first six months): Flat-rate fee of $80–$200 per item.

• After six months or via courier: Ad-valorem duties based on product classification.

Q3: Will my shipments be delayed?

A: Likely, especially with postal services. Couriers remain faster but more expensive.

Q4: Do OTC, supplements, or Ayurvedic products fall under the rule?

A: Yes—all imports are affected regardless of type.

Q5: Can shipments be seized?

A: Yes, especially without proper documentation. Provide a valid prescription, invoice, and accurate classification to avoid penalties.

Final Takeaway

The end of the $800 de minimis exemption is a seismic change in U.S. import policy. While it complicates access to affordable medicines from India, strategic planning—such as bundling, using compliant couriers, and preparing accurate documentation—can help patients navigate these new challenges.

At Gaia Trade, we're committed to assisting patients with:

• GDP-compliant storage & shipping

• Partnerships with trusted couriers

• Expert documentation and customs advisory

Our mission remains steadfast: ensuring safe, reliable, and affordable access to medicines globally.

• Wall Street Journal

• The Verge

• The Times of India