USA Import Tariffs and End of 'De Minimis'

I’ve been trying to get my head around this and its so confusing.

I am a UK seller with only about 5% sales to the USA but I’d like to keep them.
I will be using Royal Mail ‘Click and Drop’ DDP to post to the USA.

I’ve experimented with the Shopify Taxes and Duties.
I added HS codes and Country of Origin to a few products to test it.

The amount of Duties added to USA orders at Checkout doesnt match what the Royal Mail ‘Click and Drop’ adds on.

For a start the Royal Mail DDP only adds the tariff to the product cost… Shopify seems to add the Tariff to the product cost and shipping cost combined. Even so I cant seem to make them add up to the same amount.

  1. Is there anyway of seeing a breakdown of how Shopify is getting the ‘duties’ amount?

  2. Do I need to set up a seperate market just for USA? As when I applied ‘duties and taxes’ in Shopify it started adding taxes to all my EU checkouts.

Is there any comprehensive ‘how to’ do this out there.. all I could find was this and its not exactly detailed.

I’ve noticed that some of my competitors are not charging duties at checkout (probably sending illegally as ‘gifts’) while another seems to be using the UK flat rate of 10% though I know that the products are not manufactured in the UK but in China and Thailand.

The whole thing is a mess!

and th

This is a really common pain point for UK sellers since de minimis ended. A few things that should help:

Why Shopify and Royal Mail don’t match: Shopify calculates duties on the total customs value, which can include shipping cost depending on the destination country’s rules. The US uses FOB (Free on Board) valuation, meaning duties should be based on product value only, not shipping. Royal Mail is likely applying this correctly, while Shopify’s third-party calculator may be adding shipping into the dutiable value. Unfortunately there’s no way to see a detailed breakdown of Shopify’s calculation — it’s a known limitation.

The EU tax problem: When you enable duties and import taxes in Settings → Taxes & Duties, it applies to all markets by default. You need to go to Settings → Markets and configure each market separately. Create a US market if you don’t have one, enable duty collection only for that market, and leave your EU/UK markets as they were. That should stop the unwanted tax showing up on EU checkouts.

On the 10% flat rate your competitors are using: That was likely the old IEEPA tariff from 2025, which the US Supreme Court struck down in February 2026. It was replaced by a temporary 10% Section 122 duty that expires after 150 days. So even that rate is changing. The only reliable approach is correct HS codes with country of origin — Shopify will then pull the current rate from its tariff database.

Practical suggestion for 5% US sales: Given the small volume, DAP (customer pays duties on delivery) might honestly be less hassle than DDP. You avoid the Shopify vs Royal Mail reconciliation issue entirely. The downside is customer experience — but you could add a note at checkout explaining that US orders may be subject to import duties on delivery. Many small UK sellers are doing exactly this.

Building on what mike331 said — the HS code + country of origin accuracy piece is the part that trips most sellers up, since there’s no easy way to tell which products in your catalog are missing it or have something entered wrong, especially once you’re past a couple hundred SKUs. I built a free tool (Origova) that scans your whole catalog and flags exactly which products are missing HS codes/origin/weight before you even get to the market/duty setup mike331 walked through — might save you some of the manual digging. Happy to answer any HS-code-specific questions too, since that part trips up a lot of UK/EU sellers post de minimis.

Not a broker and not a lawyer, and I can’t see inside Shopify’s calculator either — but several things changed on both ends since this thread started, and any comparison made before them won’t reconcile.

1. The PDDP ceiling moved. Since 24 July 2026 the maximum eligible value for a PDDP (prepaid duty) shipment to the USA went from $800 to $2,500 — it’s in the timeline of changes on Royal Mail’s USA business updates page. As of 5 August 2026 their own PDDP product page still says, in the “What restrictions apply?” section, that the service to America is “only available for packages up to $800”. So whichever number you’ve been designing around, one of Royal Mail’s two pages is stale; worth saving a screenshot of the updates page before any support conversation.

2. What’s charged on the postal lane changed the same day. Royal Mail’s timeline of changes says that from 24 July “standard duty rates, including any applicable Section 232 and 301 duties such as Forced Labour, will apply” (the FAQ further down that same page drops the “such as Forced Labour” wording). On the US side the 10% Section 122 surcharge wasn’t cancelled — it ran out: the proclamation set it to run “through 12:01 a.m. eastern daylight time on July 24, 2026” (91 FR 9339), and the tariff schedule now notes those headings expired at the close of 23 July. An additive 10% under the new Section 301 action took effect the same minute (91 FR 47318); UK goods sit in the additive-10% band, heading 9903.05.81.

Same headline 10%, completely different legal basis — but the two exemption lists are not the same, so “nothing changed” only holds if your goods were exempt under both or under neither. Section 301 has a UK-specific exclusion (heading 9903.05.96 — Scotch whisky and certain medical devices, which did pay the old surcharge), a general exclusion list that doesn’t match the old one, and an informational-materials exclusion (9903.05.92) covering publications, posters, photographs and artworks — those pay nothing under either regime, so for prints the answer is 0%, not 10%. Two more things that move the number: it keys on country of origin, not where you post from (stock you resell that was made elsewhere sits in a different band, which is a very common reason a checkout number and a carrier number disagree), and goods already in transit on 24 July and entered before 28 July escaped both.

3. The US end of the mail channel is a different process now. Mail shipments valued at $2,500 or less can use a new informal entry process that took effect 24 July 2026 (91 FR 37801). $2,500 isn’t a new allowance, by the way — it’s the long-standing informal-entry ceiling; what changed is that the $800 de minimis exemption is gone for mail. For parcels going through that process duties are no longer collected from the recipient on delivery: they’re reported on a monthly worksheet with 10-digit HTS codes and paid through Pay.gov by the 7th day of the month following the parcel’s arrival. The filer has to be the owner or purchaser, or a licensed customs broker they designate, and must hold a basic importation and entry bond — no bond, no release (19 CFR 145.15). Alcohol and tobacco need formal entry regardless.

Watch the shelf life on that one: the same rule makes anything carrying a chapter 98 or 99 duty ineligible for the postal informal process, and CBP delayed the compliance date for that requirement to 22 October 2026 (19 CFR 145.12(a)(2)(vi)). UK-origin goods now carry a chapter 99 heading — the one above — so unless CBP moves that date, UK parcels look set to fall out of the postal informal process in October. Worth knowing before you build a process around it. Royal Mail’s own updates page also says the next phase of US changes is due in September 2026, so this isn’t settled yet.

On fees, since they’re easy to mix up: the 50p per-item figure everyone quotes is published under the heading “Account PDDP Handling Fees” on Royal Mail’s PDDP page — it’s the account tariff. For sending without a credit account Royal Mail publishes no figure at all today; the consumer page just says the service is available online and in all UK Post Offices and that “a small service fee will apply”. The only number I’ve found for the non-account route is £1.50 per package, in a September 2025 Royal Mail PDDP Q&A — but that document still describes the old $800 cap, so I wouldn’t treat it as current, and sellers have reported the £1.50 at Post Office counters rather than online. The fee is shown before you pay, so check what your own route actually charges rather than assuming 50p.

What I’d actually do rather than reverse-engineer the difference: ask Royal Mail in writing which value they compute duty on and which chapter 99 headings they’re applying to US-bound parcels, and keep the reply. Carrier practice has been inconsistent enough this summer that a written answer is worth more than a calculator comparison — and it’s the only thing that helps if you later have to dispute a recharge invoice.

Ciao a tutti, sono Matteo — sto raccogliendo esperienze reali di venditori che gestiscono i nuovi obblighi doganali/fiscali dopo la fine del de minimis, sia lato USA che UE. Per chi vende cross-border, qual è stata la parte più complicata da capire o gestire in questi mesi? Grazie a chi ha voglia di raccontarmi la sua esperienza.

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