FAQ: Suspension of De Minimis

A new Executive Order was published declaring the suspension of Duty-Free De Minimis treatment for all countries, as of midnight, Friday August 29, 2025. Below are some frequently asked questions

Update Mon, Oct 6

CUSMA Enhancements

SKUs are no longer mandatory for CUSMA certification.

• Simply provide the countyr of origin, product description and 10 digit HTS code for approval
• Once approved to see duty-free enter the same COO and HTS
• If you had previously created SKUs that were approved be sure to enter the HTS and COO that was approved to continue seeing duty-free

Fentanyl Tariffs on Informational Material

Upon guidance from our broker, items that are the product of China or Hong Kong, that are considered to be informational materials still have 20% tariffs applied, as imposed by the U.S. Administration to combat the flow of fentanyl into the country. We will not retroactively impose these tariffs on previous shipments, but any shipment going forward that meets these criteria will have applicable tariffs applied.

Informational material

• You will need to apply for CUSMA if your item has a country of origin Canada, U.S. or Mexico and qualifies for duty-free in the HTS guide.
• Origin China: Only 20% Fentanyl Tariff applies
• Origin Canada: 35% reciprocal Tariff applies unless CUSMA Certified
• Origin Mexico: 25% reciprocal Tariff applies unless CUSMA Certified
• All other countries: No change, still exempt from reciprocal tariffs

Section 301 Tariffs on goods from China

Depending on the product’s HTS code, an additional tariff for products from China may apply. These can be identified by hovering over the ‘1/’ in the HTS Schedule, and looking up the HTS Code provided in the tool tip, as pictured below:

These additional tariffs are considered ‘Section 301 Tariffs’ and can range from 7.5% to 25%, depending on the HTS Code. More information can be found on the Office of the United States Trade Representative website.

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Common reasons for delays result from incorrect, vague or missing information – we’ve made adjustments to catch any missing information at time of postage creation.

U.S. Customs Border and Protection has implemented automated enforcement of package descriptions. This means you must ensure that all shipment descriptions are detailed. For example t-shirt is not acceptable but rather men’s cotton t-shirt. If your shipment does not have detailed descriptions this will cause your package to be rejected.

What You Can Do

• 👉 Provide accurate and detailed shipment descriptions. Find examples in our previous blog
• 👉 Ensure manufacturer information is valid and matches the country of origin
  • I.e. Country of origin is China – the manufacturer address MUST be a Chinese address
  • Entering placeholder text (Unknown, N/A, etc.) will result in shipments being rejected and further delays
• 👉 Ensure you provide a valid 10 digit HTS code

Resource Hub

With so much information find key topics below that will provide additional resources and FAQs to help you navigate these changes.

• HTS Codes, Tariffs & Duties
• CUSMA
• Glossary
• Country of Origin & Manufacturer Information
• Resources & Support Contacts

US Shipping Is Changing — And We’re All Feeling It

To our Chit Chats family,

Lately, everything is changing — and fast. There are new rules and regulations, which are demanding the creation of new systems. It’s been a lot to keep up with and you’re not alone in feeling overwhelmed.

Behind the scenes, our team is collaborating with our broker to develop the system and working closely with US Customs to ensure our Canadian ecommerce sellers have the information they need to remain compliant.

Not everything is in our control, Chit Chats is adapting as quickly as possible to support you through these transitions. The removal of the de minimis threshold has disrupted shipping in unprecedented ways. Not only are shipments being delayed and rejected but the new requirements are impacting your bottom line. 

What We’re Doing to Support You

We’re committed to leveraging our network to mitigate risks where we can, minimize the impact to you where possible. The learning curve is steep for all of us but we’re working around the clock to troubleshoot, communicate and provide solutions to help you continue to ship. 

We understand shipping is an integral part of your business but we also know your client experience matters. Whether you’re a solo Etsy artisan, a seasoned eBay seller, or a growing online brand, we know these changes are creating real challenges. 

🇨🇦 Chit Chats Puts Canada First

This isn’t the first time Canadian businesses have faced cross-border shipping challenges. In fact helping Canadian eCommerce sellers succeed is at the heart of what we do. Back in 2001, when our founder Derek Nolan saw firsthand how hard it was for small businesses to ship affordably and reliably from Canada and compete globally. That mission has never changed.

Moving Forward Together

We know this is a tough moment, but we want you to know we’re in it with you. Our commitment remains the same: to find solutions that empower Canadian businesses to thrive, no matter how the rules shift. Thank you for trusting us through this journey; we’ll continue to keep you informed and supported every step of the way.

FAQs

Postage Is DDU (duties unpaid) no longer available with Chit Chats? – click for answer

There are no DDU options at this time. We understand that many sellers prefer to have duties collected at the time of delivery from the recipient and our team is exploring if we can provide a solution. There is no timeline if and when a DDU solution will be available but we will update all clients if this changes.

For Chit Chats Edge and Chit Chats Select – is this a postal or non-postal service?

Due to our method of entry into the US, both Chit Chats U.S. Edge and U.S. Select are non-postal services. Other postages partnered with Canada Post and PostNL follow under postal services. You will not be required to pay the $200 ad valorem fee, however you will be expected to pay a tariff fee based on the item(s) declared.

If I ship with USPS Media Mail will this still be available? 

USPS Media Mail is available through our DDP (duties paid) option. The country of origin, valid HTS code, and manufacturer information must be declared in order to obtain rates. 

Will I need to provide a manufacturer address for books when I don’t have it?

• To access DDP (duties paid) postage options you are required to provide manufacturer information. If it cannot be provided our DDU options can be an alternative as you only require the country of origin and a valid HTS code.

Update Aug 28

✅ DDP Postage

The only way to ship to the US is with DDP (duties paid). 

• To see postage rates for DDP, it is mandatory to provide:
  • The Country of Origin (COO) of the product (also physically labelled)
  • Manufacturer information (address & postal code that match the COO)
  • 10 digit HTS code, (valid as per US Harmonized Tariff Schedule) which determines the applicable tariff rate
• Common errors if you cannot see postage is invalid HTS code or missing manufacturer information.

DDP Costs Breakdown

• Postage cost (as usual)
• Chit Chats Insurance (if added)
• Tariffs (if applicable)
  • Combination of the general rate of duty and any applicable ad valorem tariffs based on 10 digit HTS code (refer to official US site)
• ➡️ Customs Processing is a flat fee (1.35 USD flat fee) per shipment, covering administrative costs for informal entry into the U.S.
• ➡️ Broker Line Item is the fee for our broker to process the individual line items in the shipment (0.15 USD / line item). Example: You are shipping 1 tshirt, 2 mugs and 3 pen = 3 shipment items
• *These fees are subject to change – we have worked hard to keep these as low as possible as we understand sellers are grappling with having to now also pay for duties on top of postage costs.