International ecommerce, de minimis value and why it matters!

De minimis is a country-specific threshold at which duties and taxes are applied.


How does de minimis apply to cross-border transactions'

Many countries have a de minimis threshold, under which shipments are cleared without incurring customs duties or taxes. If the value of a shipment is below the de minimis threshold of the destination country, as long as it is shown, it can be cleared without incurring customs duties or taxes. This is because the process for assessing and collecting duties and taxes requires time and resources for the importing country, so it doesn’t make economic sense to spend time on low-value shipments. But be aware, everything has a value - otherwise it can be challenged.


Even a complimentary gift has a de minimis value

Recently an ecommerce client sent a complimentary gift to an influencer for promotion, as it was a free gift, they declared the value at zero. This was then challenged at customs and delivery was delayed while the true value was assessed to establish whether duties and taxes needed to be applied. The de minimis value varies greatly by country, and it’s worth understanding the markets you ship to or want to target. It's worth noting that many items can be received duty-free, if the goods meet the rules of origin under free trade agreements. If you are looking to expand your ecommerce and trade internationally, you need to understand the regulations which apply in the countries you want to sell into.  De minimis limits for cross-border e-commerce are becoming a hot discussion point for governments, logistics providers and online retailers.


Supporting your international ecommerce growth

Want to focus on growth and know your internet orders are being fulfilled in the most cost efficient way' Spatial Global provide you with a low-cost UK and international delivery service. Picking and shipping orders to your precise packaging specification. All designed to help you maximise profits and remain competitive in a fast changing environment. We send thousands of packages a day across the world, which means you get our experience and economies of scale to deal with the highest peaks in demand. Get in touch - see how we can help!

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