Events Face New Customs Headache: End of $800 Duty-Free Import Rule

The U.S. government has terminated its “de minimis” exemption, which had allowed packages valued under $800 to enter the country without customs duties. The change means that all products and materials crossing the border will now be subject to tariffs.

The administration defended the move on security grounds, arguing the de minimis pathway subjected packages to less scrutiny than traditional imports. Officials said 98 percent of narcotics seizures by case count occurred via de minimis shipments.

“While security concerns are real, this blanket removal risks penalizing legitimate businesses and slowing economic recovery for the events sector,” said Maggie Barnett, CEO, LVK Logistics. “A phased approach or clearer compliance framework could have balanced trade security with economic stability.”

In 2024, U.S. Customs and Border Protection processed 1.36 billion packages — 3.7 million shipments daily — with a declared value of $64.6 billion under the rule.

The impact has been immediate. More than 30 countries — including Canada, Mexico, the UK, Germany, Austria, India, Japan, and Australia — have suspended or restricted shipments to the U.S. as postal operators await clarity on collecting duties and transmitting them to Customs and Border Protection (CBP).

Logistics providers warn that parcels shipped via postal services will face flat-rate import charges of $80 to $200 for the first six months, before moving to tariffs of 5% to 15% based on declared value.

Private couriers including UPS, FedEx, and DHL will add percentage-based tariffs on both goods and shipping costs, along with brokerage fees averaging $12 to $14.

The Customs Impact on Events and Promotional Products

Most event materials crossing borders will exceed the $800 value threshold, but industry leaders oppose the added cost and complexity.

“Ending the de minimis exemption is another U.S. tariff policy change that will impact the industry’s ability to meet the needs and expectations of our customers. As part of the Exhibitions & Conferences Alliance, IAEE continues to oppose tariffs that increase costs for business and professional event organizers, exhibitors, and attendees alike,” said Marsha Flanagan, president and CEO of the International Association of Exhibitions and Events (IAEE). 

Promotional product vendors are likely to be particularly impacted.

Drew Holmgreen, president and CEO of Promotional Products Association International (PPAI), warns the change will heavily impact the industry. He said, "Without de minimis, small, low-value shipments will face additional fees, customs delays and more paperwork."

Some vendors are adjusting logistics to lessen the impact on business. Promotional products company HPG has boosted production in California and stocked up on inventory, but CEO Chris Anderson said flexibility will be reduced in working with its facilities in Canada and Mexico.

“This change means inventory can no longer flow freely between locations, leading to inefficiency and forcing us to hold duplicate stock,” Anderson said. “Combined with broader tariff policies, it will reduce marketing budgets and ultimately impact exhibitor participation at trade shows. Plus there is not the workforce in the U.S. to produce the numbers we produce.”