US de minimis ends July 2027 for ALL COUNTRIES

[cottagewoman]

In the bill the Senate just passed in the US, de minimis for ALL COUNTRIES ends July 2027. It is ending, guaranteed. There is strong bipartisan support in the current Congress for this change. Who knows what the exemption will be replaced with. Simply do a web search for 'reconciliation Bill de minimis' and you will see the provision in the bill.

As well the EU is ending de minimis, on top of adopting a Digital Passport system with block chain for all goods imported into the country. Casual online selling will be a thing of the past in 2 years. Barrier to selling will be high with all the new regulations coming, costs and complexity will shut out millions of micro and small businesses world wide.

[flipistics]

The USA is an important market, but plenty of things sell just fine within Canada and other countries.  I doubt this will have a significant impact on EU sales for a lot of small businesses.

The USA regulations will force people to start looking to other markets as well. Longer term, that will help small businesses. In the short term it will obviously hurt.

[marnotom!]

I suspect this will be a negotiating point in trade talks with Canada, Mexico, China, the EU, heck, anywhere, really.

[recped]

You are jumping the gun.....

The Bill still needs to pass the House again.

If the House makes any amendments it will have to go back to the Senate.

Two years is a long time, plenty of time for things to change, change again and then change again.

The basic reason for de minimus is still in play, it costs more to collect small amounts of duty than the duty brings in.

If the Democrats take either or both of the House and Senate in 2026 things could change well before 2027

DJT could drop dead at any time, this would radically change everything.

The most recent version of the BBB I've seen (from Monday afternoon) mentions de minimis 3 times but provide zero details of the changes that are proposed.

[38e_avenue]

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@recped wrote:

Two years is a long time, plenty of time for things to change, change again and then change again.

The basic reason for de minimus is still in play, it costs more to collect small amounts of duty than the duty brings in.

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It's exactly what I mean, too. 

[wilsonharborsales]

The Bill has passed and is now law. It is not a negotiating tactic, Section 321 de minimis will not exist after July 1st 2027. I will wind up my e-commerce business or move it Stateside before then.

[sapphyres-designer-jewellery]

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@wilsonharborsales wrote:
The Bill has passed and is now law. It is not a negotiating tactic, Section 321 de minimis will not exist after July 1st 2027. I will wind up my e-commerce business or move it Stateside before then.

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The question I have, is what will Canadian sellers do when de minimis ends? How is that going to work?

I'm not prepared to give up without a fight, if there's a way to continue to sell after July 1, 2027 I want to take advantage of that. I live too far from the border to move my business stateside, not to mention I don't want hassles with crossing the border to run my business. The majority of people in this forum are stuck selling in Canada.

So I guess my question is how do our packages clear customs once there's no longer a de minimis?

C.

[reallynicestamps]

how do our packages clear customs once there's no longer a de minimis?

Two possiblities.

First- the public servants, who have more sense than the politicians, just don't bother with low value shipments. That's what CBSA and Canada Post were doing before 2020, when the Canadian de minimus was $20.
There are threads here thousands of posts long complaining that private carriers like UPS were charging those fees (as they were legally required to do) and adding their (possibly accurate) costs of $25 or more to each for "customs brokerage".

Your $50 import shipped by post attracted no extra charges.

Your $150 import was charged whatever the rate was. And Canada Post added $9.95 service fee for collecting it.

Second possibility is what those carriers were doing.

Charging the recipient for "customs brokerage" on top of the duty , sales taxes, and tariffs that are applicable.

Your customer for the $50 purchase pays $71.50 plus local sales taxes, plus other duty, for the Chinese made doomahinkey you sold them plus a $25  "customs brokerage fee" to the carrier.

[reallynicestamps]

A thought.

People buy online because they cannot easily find the product locally.

US importers/buyers are doing the same.

Are your items attractive enough (whatever the price) that the customer will part with cash for it?

[38e_avenue]

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@wilsonharborsales wrote:
or move it Stateside before then.

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I wonder what do you exactly mean by "moving it Stateside"? 

Physically moving to the US? Crossing the border with packages through commercial line, with all fees, duties and all associated hassles?   

[musicyouneed]

I'm not going to worry about it too much, just a little bit of prep.  I have started to list according to COO, and will list items made in the US on .com and others on .ca.  When the time comes, I will not allow US shipping on my .ca items.   I am also going to be cutting back on lot on purchasing for sale.  

It is 2 years down the road, I might be dead by then who knows.  No point of stressing out about it now. 

[reallynicestamps]

Country of Origin in the Description and in Item Specifics.

And don't forget those HS codes.

I've got a list in my daybook of my most used ones.

[valuestore]

My brokerage is asking for a 5000 deposit, 500 year service fee to maintain a surety bond service. I'm not happy about this, troll as you will about corn pop boxes , this is not good for the economy.

[flipistics]

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@sapphyres-designer-jewellery wrote:

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@wilsonharborsales wrote:
The Bill has passed and is now law. It is not a negotiating tactic, Section 321 de minimis will not exist after July 1st 2027. I will wind up my e-commerce business or move it Stateside before then.

---

The question I have, is what will Canadian sellers do when de minimis ends? How is that going to work?

I'm not prepared to give up without a fight, if there's a way to continue to sell after July 1, 2027 I want to take advantage of that. I live too far from the border to move my business stateside, not to mention I don't want hassles with crossing the border to run my business. The majority of people in this forum are stuck selling in Canada.

So I guess my question is how do our packages clear customs once there's no longer a de minimis?

C.

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We have no idea how it's going to work. I think it's most likely that eBay will implement a global shipping program or something similar and that will take care of any headaches for us. Either way, it's not time to panic over it. 2 years is an eternity in Trump time. It'll likely change a dozen times (for better or for worse) by then. 

[38e_avenue]

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@reallynicestamps wrote:

Country of Origin in the Description and in Item Specifics.

And don't forget those HS codes.

I've got a list in my daybook of my most used ones.

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I printed labels I put now on every package going to the US. 

[flipistics]

@38e_avenue  You might want to increase those to the full 10 digits.

[ilikehockeyjerseys]

A lot of Canadian sellers do well by leveraging the value they can offer to US buyers through our low exchange rate and eBay's cheap Tracked Packet shipping. 

Adding 25 percent+ in fees to an order will offset that.

There are different scales and types of sellers. For most of a certain size, this will almost certainly put them out of business.

eBay is going to badly need a global shipping program for Canada, both to offset any added complexities of shipping to the USA for casual sellers, but also to open up there rest of the world for higher volume sellers to offset the losses to the US market. 

[marnotom!]

For what it’s worth, I found this this other day:

https://export.ebay.com/en/services-tools/shipping/ebay-international-shipping/

No idea when it was originally posted, of course, but my guess is that it was quite a while ago.

[38e_avenue]

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@flipistics wrote:

@38e_avenue  You might want to increase those to the full 10 digits.

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Will check it - the US HTS code is quite similar. 

[wilsonharborsales]

Open a U.S. Corp and transfer all assets into the U.S. Corp. with a physical location on the U.S. side of the border.  Ship everything from there.  Once de minimis is gone, tariff rates will be changing weekly on a whim and based on the mood of a few high ranking people.  Impossible to operate an export business in Canada under those conditions.

There isn't anything else you can do if you want to keep selling online and you are a Canadian resident.