Online seller crossing the de minimis threshold
Cross-border e-commerce sellers shipping consumer goods to the US / EU / UK / AU cumulative threshold gotchas: parcel-level limits, retailer registration requirements, and what triggers a switch from simplified to formal customs entry.
Checklist
- 01
Identify your destination de minimis: USD 800 per shipment (US Section 321), EUR 150 (EU IOSS), GBP 135 (UK), AUD 1,000 (AU low-value imported goods scheme), JPY 10,000 (Japan), CAD 40 (CA — gift) / CAD 150 (CA — couriered goods).
- 02
For shipments to the US: the Section 321 USD 800 threshold is per shipment per day per recipient. Splitting a USD 1,500 order into two USD 750 parcels mailed on the same day to the same address is treated as a single USD 1,500 shipment by CBP and triggers formal entry.
- 03
For shipments to the EU: register on the IOSS portal in any EU member state (or via a fiscal representative) and collect VAT at point of sale. Without IOSS, every parcel attracts VAT + duty + EUR 25-50 carrier handling fee at delivery — buyers complain.
- 04
For shipments to the UK: HMRC's Low-Value Goods scheme requires you to collect VAT at the point of sale on consignments under GBP 135 if shipped to UK consumers. Register for UK VAT or use a marketplace's VAT-collection scheme.
- 05
For shipments to Australia: from AUD 1,000 imported low-value goods (LVG) attract 10% GST collected at point of sale; you must register for Australian GST if you sell over AUD 75,000/year of LVG to AU consumers.
- 06
Build the de minimis check into your order-confirmation flow: warn the customer when their cart total exceeds the threshold, and surface the duty implication. This avoids surprise carrier-handling-fee complaints and reduces parcel-refusal rates.