IEEPA Tariffs and De Minimis Shipments: What Businesses Need to Know About Refunds

1. What Is a De Minimis Entry?

A de minimis entry refers to shipments imported into the United States with a value typically under $800, which qualify for expedited customs clearance under Section 321. These shipments are generally processed as informal entries, often through Type 86 filings, and benefit from reduced administrative requirements compared to formal consumption entries.

Key characteristics include:

• No formal entry summary (CBP Form 7501) required

• Faster clearance and reduced administrative burden

• Typically, no traditional liquidation cycle by CBP

• Limited post-entry mechanisms for correction or refund

While de minimis treatment has streamlined import operations, it also creates structural limitations when duties are later challenged.

2. IEEPA Tariffs on De Minimis Shipments

The duty-free exemption for de minimis shipments ended on May 2, 2025, followed by the removal of the exemption for imports from all countries. Since then, de minimis shipments—despite their low value—were subject to IEEPAduties. CBP applied simplified duty methodologies to accommodate high-volume, low-value imports.

Two primary approaches were observed:

(a) Flat Rate Duty Structure

• A fixed dollar amount per shipment, regardless of declared value

• Designed for administrative efficiency

• Commonly applied in high-volume import scenarios

(b) Tiered / Ad Valorem Structure

• Duties assessed based on shipment value bands

• Example framework:

  • Lower-value tier → lower duty rate

  • Higher-value (but still under $800) → higher rate

• Functionally similar to ad valorem tariffs, but simplified for informal processing

Country-Specific Application

• China-origin goods: Often subject to higher effective tariff exposure due to broader trade measures

• Other countries with Normal Trade Relations (NTR): Subject to more generalized IEEPA tariff application

Even though de minimis entries traditionally benefit from duty-free treatment, IEEPA tariffs effectively overrode this advantage, impacting a broad range of business import activities.

3. Impact of the Supreme Court and CIT Orders

The Feb. 20, 2026 ruling by the Supreme Court of the United States invalidated the legal basis for IEEPA tariffs. Subsequent developments at the U.S. Court of International Trade have begun shaping the refund framework.

However, for de minimis shipments, the issue remains unresolved:

• Judicial relief is focused on formal entries
  Refund pathways (e.g., protests) depend on liquidation—generally absent in informal entries

• De minimis entries are not explicitly covered
  Current CIT orders do not extend to refunds for duties paid on these shipments

• CBP’s CAPE system (Phase 1) excludes informal entries
  The developing refund platform appears limited to:

  • Unliquidated formal entries

  • Liquidated but not final entries

  • Protest-based recovery mechanisms

Result:
A procedural gap exists—while the tariffs have been invalidated, there is currently no established mechanism for businesses to recover duties paid on de minimis entries.

4. What Actions Should Importers Take Now?

Given the evolving landscape, importers should take proactive and strategic steps to preserve potential recovery opportunities:

(1) Reconstruct and Retain Records

• Compile shipment-level data, including:

  • Entry identifiers (if available)

  • Carrier and broker information

  • Duty amounts paid

  • Product descriptions and country of origin

• Many de minimis shipments lack centralized documentation—data reconstruction is critical

(2) Segment Exposure

• Separate:

  • Formal entries → pursue protest and refund strategies

  • De minimis entries → track as a distinct category for potential future recovery

(3) Monitor Regulatory and Legislative Developments

• Track:

  • Potential expansion of CAPE to include informal entries

  • Congressional action addressing refund eligibility

  • New litigation developments that may clarify rights for informal entries

(4) Engage Trade Compliance Advisors

• Evaluate potential recovery strategies as new guidance emerges

• Position your organization to act quickly if a refund mechanism becomes available

Final Thought

De minimis shipments accounted for a significant portion of IEEPA tariff collections across a wide range of industries. While the legal basis for these tariffs has now been invalidated, the operational pathway to recover those duties remains incomplete.

TradeSmart Insight: Businesses should act now to organize data, assess exposure, and stay closely aligned with regulatory developments—because when a recovery mechanism is introduced, preparedness will be the key to successful claims.