The De Minimis Crisis: Why Thousands of Packages Are Being Destroyed at US Customs

What Changed and Why It Matters

For years, the de minimis provision allowed low-value imports to bypass the full customs clearance process. In 2024 alone, approximately 1.4 billion packages entered the United States under this exemption, according to U.S. Customs and Border Protection (CBP) data. The system worked efficiently for consumers and small businesses, enabling the growth of cross-border e-commerce and keeping costs low for international purchases.

On July 30, 2025, President Trump signed an Executive Order suspending duty-free de minimis treatment for all countries, effective August 29, 2025. The order cited national security concerns and the need to address the flow of illicit goods into the country. While the policy goals may have merit, the implementation timeline gave businesses and logistics providers just 30 days to prepare for a fundamental shift in how millions of packages would be processed.

The change means that every international package, regardless of value, now requires full customs declarations, proper tariff classification, duty payments, and complete documentation. For the e-commerce ecosystem built around quick, low-cost international shipping, this represents a seismic shift in operations and compliance requirements.

The Scale of the Problem

The numbers tell a sobering story. Since the exemption ended, CBP has processed nearly 24 million parcels that would have previously received duty-free treatment. While UPS reports that it clears approximately 90% of international packages on the first day of customs processing, the remaining 10% face delays or disposal when paperwork issues cannot be resolved.

When considering the volume of packages flowing through the system, 10% represents tens of thousands of shipments in limbo. Matthew Wasserbach, brokerage manager of Express Customs Clearance, told NBC News that the backlog is “totally unprecedented” in his experience with customs operations.

UPS has stated that it attempts to contact senders or recipients up to three times to request missing information or documents before taking disposal action. However, many customers report that tracking notifications are too vague to understand what specific documentation is required, and by the time they learn of the problem, it may be too late to save their shipment.

Real Stories, Real Losses

The human impact of this policy change extends beyond statistics. One Boston resident, identified only as AJ in media reports, shipped a package from Japan containing Japanese language books, a pillow, and a backpack. After sitting in Louisville for nearly two weeks, he received a tracking update on September 26 stating the package “did not clear customs and has been removed from the UPS network” and had been “destroyed.”

Three days later, a new update indicated “On the Way” with an import scan from Louisville, raising hopes the package had been found. But within 24 hours, another notification arrived with the same destruction message, followed two minutes later by a final update: “Package cannot clear due to customs delay or missing info. Package has been disposed of.”

These contradictory tracking updates have become a common complaint. Customers describe an emotional rollercoaster of hope and disappointment as they try to determine what actually happened to their possessions. For businesses, the stakes are even higher- inventory losses, customer dissatisfaction, and the financial impact of destroyed goods all threaten bottom lines.

Why Packages Are Failing Customs Clearance

The root cause of most clearance failures is incomplete or incorrect documentation. Under the old de minimis system, minimal information was required for low-value shipments. Sellers could ship internationally with basic descriptions and declared values, and packages would flow through customs with little scrutiny.

The new requirements demand significantly more detail. Importers must now provide accurate Harmonized Tariff Schedule (HTS) codes for product classification, complete seller and manufacturer information, country of origin documentation, and proper customs declarations. Many international sellers, particularly small businesses and individual shippers, were unprepared for these requirements and continue to ship packages with inadequate documentation.

Common documentation failures include vague product descriptions that prevent proper tariff classification, missing or incorrect HTS codes, incomplete seller or manufacturer information, and failure to declare accurate values or pay required duties. Even when sellers attempt to provide proper documentation, language barriers, unfamiliarity with US customs requirements, and rapidly changing tariff rules create additional complications.

What Importers Must Do Now

The new customs environment requires importers to take a more active role in ensuring compliance. Whether you are an e-commerce seller, a small business importing products, or an individual receiving international shipments, understanding and meeting documentation requirements is now essential.

Before any shipment departs for the United States, verify that your supplier or shipper provides complete and accurate customs documentation. This includes proper product descriptions using specific terms rather than vague categories, correct HTS classification codes for each item, accurate declared values, complete seller and manufacturer information, and country of origin details.

Monitor your shipment tracking closely once packages enter the United States. If you receive any notification of a “customs issue,” contact the customs broker immediately- do not wait for additional updates. Be prepared to provide supplementary documentation quickly, as brokers may only attempt contact a limited number of times before taking disposal action.

For businesses that import regularly, consider working with a customs compliance platform or broker who can ensure proper documentation from the start. The cost of professional assistance is minimal compared to the risk of losing entire shipments. Filing your ISF (Importer Security Filing) correctly and on time is the foundation of customs compliance, and modern platforms can guide you through the process efficiently.

The Business Impact

The elimination of de minimis has created ripple effects throughout the supply chain. Shipping costs have increased as carriers must process more documentation and handle customs clearance for every package. Delivery times have lengthened due to additional processing requirements and potential clearance delays. Administrative burden has grown for sellers who must now manage complex customs compliance for even small shipments.

Some businesses are responding by switching carriers, hoping to find providers with fewer disposal cases. Others are reconsidering their international shipping strategies entirely, weighing whether certain markets remain viable under the new cost structure. E-commerce sellers from Asia and Europe face particularly acute challenges, as the distance and cultural differences compound documentation difficulties.

The Universal Postal Union has begun introducing new digital customs systems to help postal operators meet US import requirements, but widespread adoption will take time. In the interim, importers must work within the current system and its limitations.

How to Protect Your Shipments

Success in the post-de minimis environment requires proactive compliance and clear communication with all parties in the supply chain. Start by educating your international suppliers about US customs requirements. Many overseas sellers remain unaware of the changes or underestimate the documentation needed for successful clearance.

Implement a documentation checklist that you review before every shipment. Verify that all required information is complete and accurate. If you are unsure about proper HTS classification, research the codes using CBP’s online database or consult with a customs professional. Misclassification can result in clearance delays even when other documentation is correct.

Consider using customs compliance technology to streamline the process. Modern platforms can validate information, flag potential issues before shipment, and provide guidance on proper documentation. EezyImport’s platform, for example, offers transparent pricing and tools designed to simplify customs compliance for importers of all sizes, helping you avoid the costly mistakes that lead to package disposal.

Maintain copies of all shipping documents, commercial invoices, and correspondence related to your shipments. If a customs issue arises, having complete records readily available can mean the difference between quick resolution and package destruction.

Looking Ahead

The de minimis crisis highlights the challenges that arise when policy changes outpace the capacity of logistics systems to adapt. While the stated goals of enhanced security and reduced illicit imports are legitimate, the implementation has created significant hardship for legitimate businesses and consumers.

As the system adjusts to the new reality, we can expect continued evolution in how packages are processed and documented. Technology will play an increasingly important role, with artificial intelligence and machine learning helping to automate documentation review, flag potential compliance issues, and streamline clearance processes.

For importers, the message is clear: the days of casual international shipping are over. Success requires understanding customs requirements, maintaining accurate documentation, and using tools and services that ensure compliance from the start. The cost of getting it wrong- lost shipments, destroyed goods, and frustrated customers- is simply too high.

The elimination of de minimis has fundamentally changed the landscape of international shipping to the United States. Those who adapt quickly and invest in proper compliance will continue to thrive in cross-border commerce. Those who ignore the new requirements risk joining the thousands of packages that never make it past customs.

Take Control of Your Customs Compliance

The chaos at customs facilities does not have to derail your import operations. By understanding the new requirements, implementing proper documentation procedures, and using modern compliance tools, you can ensure your shipments clear customs successfully every time.

Whether you are filing an ISF for ocean cargo or managing entry summaries for regular imports, having the right systems in place makes all the difference. EezyImport’s transparent pricing and user-friendly platform put you in control of your customs clearance, with the guidance and support you need to meet every requirement.

Do not let your packages become another casualty of the de minimis crisis. Take action now to protect your shipments and your business.