Were you looking for what we will be talking about in this blog, or did you just stumbled upon us? Either way, you’ll get the answer to what you were looking for.
If you are planning to cater to an international audience, you’ll be introduced to a complex world of excessive customs and tax clearance.
For those who are confused, de minimis value is a term very prevalent when you are hustling with international shipping.
Let’s go ahead and try to understand the de minimis threshold and why it’s necessary for your business.
What is de minimis?
According to the WTO definition, the de minimis rule refers to the minimal amounts of domestic support that are allowed even though they distort trade.
It is capped at 5% of the value of production for developed countries and 10% for developing countries.
Complex? Well, in simple terms de minimis threshold gives the maximum value up to which no import duties or taxes can be collected from the sellers.
So, if your goods are valued below these specified values, then they can enter that country duty-free. Won’t that be helpful?
De minimis comes from the Latin phrase ‘de minimis non-curat lex’ which, in its absolute sense, means that ‘the law doesn’t care about trifling things’ (nontaxation of such trifling things >> everything else).
Let’s look at some de minimis values to give you a better idea!
Country wise values
Like other trade regulations, the de minimis level also differs from country to country. When you are deciding on prices for your products, make sure to look at shipping costs, clearance costs, and other costs.
According to the Global Express Association report dated November 2021, the de minimis for the USA is 800 USD, an export-friendly approach for other countries.
Another such country with high value is Bahrain with 790 USD, Australia with 750 USD, and New Zealand with 706 USD.
Other values that you should keep in mind include that of India at 4 USD, South Korea at 150 USD, Japan at 88 USD, and Singapore at 298 USD.
Also, keep in mind that the EU abolished VAT de minimis of 22 Euro earlier as of 1 July 2021.
An important clause to pay attention to when you are searching for the de minimis threshold is that the countries have some specific remarks for which products are eligible for the de minimis threshold.
It may seem like a lot of work, but you get used to it with time.
Disclaimer: Please note that the values provided below are subject to change by the federal authorities at any time. iThink Logistics cannot be held responsible for any inaccuracies or decisions made based on the information listed
|Country||Di-minimus In National Currency||in USD||in SDR||GEA Remarks|
|Andorra||150 EUR (Customs duties)||174||122|
|Angola||100 USD||100||70||Personal shipments; fluctuates weekly depending on exchange|
|Argentina||50 USD||50||35||12 shipments per year and only for postal shipments|
|Armenia||200 Armenian Dram||232||162||private shipments|
|Australia||<1000 AUD||750||525||For customs duties. GST is charged for overseas registered|
vendors for e-commerce shipments.
|Austria||150 EUR (Customs duties)||174||122|
|Bahrain||300 BD||790||553||Only for B2C; No de minimis for B2B.|
|Belarus||22 EUR||26||18||Private person; non-commercial shipment (provided weight|
doesn’t exceed 10Kg. If the limit is exceeded the payments are:
|Belgium||150 EUR (Customs duties)||174||122|
|Benin||100 USD||100||70||Informal arrangement on the ground for up to 100 USD|
|Bosnia and Hercegowina||150EUR||174||122||private shipments|
|Bulgaria||150 EUR (Customs duties)||174||122|
|Burkina Faso||100 USD||100||70||Informal arrangement on the ground for up to 100 USD|
|Burundi||100 USD||100||70||Informal arrangement on the ground for up to 100 USD|
|Brazil||50 USD||50||35||Only for postal shipments.|
|Cameroon||50 USD||50||35||Informal arrangement on the ground for up to 50 USD|
|Canada||20 CAD||15||11||For shipments from US and Mexico (USMCA) de minimis for GST is 40 CAD; for duties it is 150 CAD|
|Cape Verde||100 USD||100||70|
|Central African Republic||50 USD||50||35||Local document agreement|
|Chile||30 USD||30||21||Only for postal shipments.|
|Chinese Taipeh||2000 TWD||72||50||Reduced from 3,000 TWD on 1/1/2018|
|Colombia||200 USD||200||140||Only for VAT, restricted to countries with Free Trade Agreement|
that include VAT waiver
|Comoros||100 EUR||116||81||Not regulated. Informal arrangement|
|Congo, Dem.Rep.||100 USD||100||70|
|Congo, Rep. Of||50 EUR||58||41||Informal arrangement|
|Cook Islands||100 NZD||71||50|
|Côte d’Ivoire||80 EUR||93||Commercial shipments|
|Croatia||150 EUR (Customs duties)||174||122|
|Cyprus||150 EUR (Customs duties)||174||122|
|Czech Republic||150 EUR (Customs duties)||174||122|
|Denmark||150 EUR (Customs duties)||174||122|
|Djibouti||100 USD||100||70||Not regulated. Informal arrangement|
|Dominican Republic||200 USD||200||140|
|Ecuador||400 USD and 4kg||400||280||Only for postal shipments.|
|Egypt||400 USD||400||280||Informal arrangement on the ground for up to 400 USD and <|
|Estonia||150 EUR (Customs duties)||174||122|
|Fiji||400 FJD (personal items)||192||134|
|Finland||150 EUR (Customs duties)||174||122|
|France||150 EUR (Customs duties)||174||122|
|French Guyana||25 USD||25||18|
|Gabon||38 EUR||44||Local agreement|
|Gambia||200 USD||200||140||Informal arrangement on the ground for up to 200 USD|
|Ghana||100 USD||116||81||De minimis raised to 200 USD, but not yet documented.|
|Georgia||300 Lari||95||66||private shipments|
|Germany||150 EUR (Customs duties)||U||122|
|Greece||150 EUR (Customs duties)||174||122|
|Guinea Republic||80 USD||80||56|
|Guinea-Bissau||50 USD||50||35||Local agreement|
|Guinea Equatorial||50 USD||50||35||Informal agreement|
|Hong Kong, China||Freeport|
|Hungary||150 EUR (Customs duties)||174||122|
|Iceland||2000 Icelandic Krona||16||11||Private & Commercial Shipments|
|India||250 INR (CIF)||4||2|
|Indonesia||3 USD (CIF)||3||2||Changed from 75 USD. Shipments to individuals subjected to|
one time per day deminimis regardless of port of entry
|Ireland||150 EUR (Customs duties)||174||122|
|Israel||75 USD||75||53||private shipments|
|Italy||150 EUR (Customs duties)||174||122||0-150EUR VAT due. 150EUR+ VAT and Duty. However, a single|
formal entry is required for all entries (from 0EUR).
|Kazakhstan||500 EUR||580||406||Private shipments; The total value of the shipments received by|
a consignee must not exceed 500.00 EUR per month
|Korea, Rep. Of||<150 USD (Non USA Import)||150||105||Only personal shipments and samples, except medicine, herb|
medicine, wildlife-related products, quarantined items such as
|Kyrgyzstan||200 EUR||232||162||Max weight is 31Kg. Max 2 items per commodity.|
|Latvia||150 EUR (Customs duties)||174||122|
|Lithuania||150 EUR (Customs duties)||174||122|
|Luxembourg||150 EUR (Customs duties)||174||122|
|North Macedonia||22 EUR||26||18||from 22 to 45 only VAT rate applicable, above 45 EUR, duty and|
VAT rate applicable
|Mali||100 USD||100||70||Informal agreement|
|Malta||150 EUR (Customs duties)||174||122|
|Martinique||150 EUR||174||122||Only duties and taxes de minimis; VAT apply over 25 EUR|
|Mauritius||20 EUR||23||16||Only for personal shipments|
|Mexico||50 USD||50||35||Duties and taxes. Except for products of difficult identification such as liquids, powder or pills or products with an import permit requirement|
|Montenegro||75 EUR||87||61||private shipments|
|Morocco||1213 Moroccan Dirham||135||95|
|Netherlands||150 EUR (Customs duties)||174||122|
|New Zealand||1000 NZD||706||494||1000 NZD for customs duties only. GST is charged for registered|
overseas vendors from 1 Dec 2019
|Niger||100 USD||100||70||Informal agreement|
|Nigeria||250 USD||250||175||Informal agreement|
|Norway||350 NOK||41||29||Private shipments|
|Oman||10 USD||10||7||Informal arrangement on the ground for up to 10 USD|
|Pakistan||10 USD||10||7||Informal arrangement on the ground for up to 10 USD|
|Poland||150 EUR (Customs duties)||174||122|
|Portugal||150 EUR (Customs duties)||174||122|
|Romania||150 EUR (Customs duties)||174||122|
|Russia||200 EUR||0||The limit is restricted to shipments per importer (CIF) to all destinations served (for more details, please see ‘areas served’)|
|Saint Lucia||60 XCD||22||16|
|Sao Tome and Principe||25 EUR||29||20||Informal agreement|
|Saudi Arabia||1000 SAR||266||186|
|Senegal||100 EUR||116||81||Informal agreement|
|Serbia||50 EUR||0||private & commercial shipments|
|Sierra Leone||100 USD||100||70||Not regulated.|
|Slovakia||150 EUR (Customs duties)||174||122|
|Slovenia||150 EUR (Customs duties)||174||122|
|South Africa||500 ZAR||35||25||Informal arrangement on the ground for up to 500 ZAR|
|Spain||150 EUR (Customs duties)||174||122|
|Sweden||150 EUR (Customs duties)||174||122|
|Thailand||1500 Thai Baht||47||33|
|Uganda||50 USD||10||7||Informal agreement|
|Ukraine||150 EUR||174||122||150EUR (including transportation) for legal entities, 100EUR for private individuals (from 1 July 2019)|
|United Kingdom||135 GBP (Customs duties)||188||131|
|United States||800 USD||800||560|
|United Arab Emirates||270 USD||270||189|
|Uruguay||200 USD||200||140||Non-commercial shipments, only 3 shipments per year per|
person each up to 200 USD.
|Vietnam||1000000 VND||40||28||New circular 191, which might be effective in April, will require express carriers in Vietnam to comply with the following:|
a. Import shipment with value under de minimis threshold and
|Zambia||2000 USD||2||Personal shipments|
But you would be rightfully wondering how it affects you, aren’t you? Knowing the level will help you estimate the landed cost which you can further communicate to your buyers.
There are other benefits as well! Read on to find them out.
How does de minimis affect your business?
Your customers pay for the selling price, handling charge, freight, insurance, duty (if applicable), sales tax, and cost of return freight (unless you agree to cover a portion of it).
Due to this, and other trade restrictions, many customers might feel discouraged to buy products from you.
Trust us, the de minimis level can assist you advantageously if you are looking towards entering the international business.
You need to understand different barriers that might restrict your shipments and similarly strategize your selling strategies.
You would know how B2C businesses usually value lower than B2B businesses! So, when you are shipping with us, a large percentage of your shipments will clear duty and tax-free to specific countries, giving you a significant margin for your profits.
Furthermore, the rule provides faster clearance to businesses and increases the opportunity to sell into markets competitively.
According to a worldwide survey, 56% of surveyed individuals mentioned that they would buy more if the duties are eliminated or reduced.
Next time you are thinking about setting up warehouses and operations to expand your business internationally, look at the various exemptions and ease of business they provide.
Not only will there be a significant reduction in your costs, but you’ll be able to provide better customer service to your buyers!