In the context of US import regulations, De Minimis applies to shipments with a value of less than $800 purchased by one person in one day. Shipments less than $800 under these conditions are exempt from any duties. This law goes back to 1930, and seems to originally have been intended for immigrants shipping personal effects to loved ones abroad. Until 2016, the allowable amount was $200, however US Customs has since increased that amount to $800.

Why does it matter? Ecommerce has made leveraging this provision much easier to accomplish. In fact, enterprising companies can take orders via eCommerce, combine them into a consolidated entry at origin, then distribute them to clients using De Minimus in order to keep product costs low. In this great article by Alexandra Wexler of The Wall Street Journal, she highlights concerns being raised in S Africa that this practice unfairly hurts local manufacturers.

Curious to hear how others view this issue. Unfair, or a natural progression of trade in the modern era?

Related, check out my recent post on LinkedIn on the future of global trade. My prediction is that what Amazon did for the final mile will be coming soon to the first mile. I predict it will occur in the next three years, but in some ways it's already happening.