US court approves de minimis customs exemption
The US Court of International Trade ruled that the Trump administration has the authority to eliminate the customs exemption applied to low-value shipments.
The US Court of International Trade has ruled that the elimination of the de minimis customs exemption granted to low-value shipments of 800 dollars and below is legal. The decision weakens the cost advantage of Chinese e-commerce platforms and transforms the era of cheap packages in global trade.
Details of the Court Ruling
The US Court of International Trade ruled that the Trump administration has the authority to eliminate the de minimis customs exemption granted to low-value shipments of 800 dollars and below. Evaluating the elimination of the practice as distinct from imposing a new customs duty, the court decided that the President can terminate the existing commercial privilege under the International Emergency Economic Powers Act.
Chinese Platforms and E-Export Impact
The system provided a significant cost advantage particularly to Temu and Shein, which sell directly from China to consumers. The removal of the exemption will also affect Turkish e-exporters selling to the US with low-value packages, and could increase customs processing costs in apparel, textiles, footwear, and accessories.
New Regulations in Global Markets
The Trump administration had terminated the exemption in 2025, and the court decision confirmed that authority exists for this step. Congress also decided that the practice will permanently end in July 2027. Additionally, in the European Union, the advantage for shipments under 150 euros was removed, and a temporary fixed customs duty began to be applied.
Customs Steps in Turkey
Turkey took steps earlier regarding low-value shipments, lowering the threshold from 150 euros to 30 euros in August 2024. Starting from February 1, 2026, the Simplified Customs Declaration practice for non-commercial shipments up to 30 euros ended, and products became subject to general import procedures.
Two-Way Impact on the Turkish Sector
The narrowing of low-package advantages in the EU, US, and Turkey creates two-way results for the Turkish textile and apparel sector. While costs rise for Turkish companies selling to the US and EU with small packages, the low-priced business model of Chinese platforms like Temu and Shein weakens, and the price gap can narrow in favor of Turkey.