Duty-free de minimis treatment no longer applies to US imports of any value from any country, so even a small shipment of dresses, kaftans, skirts or scarves from India now pays duty. As of November 2026 (rates verified on 2026-11-13), that means the standard US (MFN) duty plus a 10% Section 301 duty, with no import VAT or GST, and customs fees on top. This note sets out what changed, what a low-value garment shipment pays and how its value is worked out.
What changed
Executive Order 14324 of 30 July 2025 suspended duty-free de minimis treatment for all countries. It states that the exemption no longer applies to any shipment “regardless of value, country of origin, mode of transportation, or method of entry”. The change took effect for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on 29 August 2025.
For shipments sent other than through the international postal network, such as courier and air or sea freight, the order makes them subject to all applicable duties, taxes, fees, exactions and charges. A shipment that would previously have qualified for de minimis must now be entered in CBP’s Automated Commercial Environment (ACE), using an appropriate entry type, by a party qualified to make that entry.
Postal shipments were given separate rules in the order, with duty linked to the IEEPA tariff rate of the country of origin and a per-item option available for 6 months only. The IEEPA tariffs ended in February 2026. How postal items from India are assessed today is not set out in the sources here, so check with your customs broker before you post goods to US customers.
What duty a low-value garment shipment pays
There is no US–India trade agreement in force. Indian garments pay the standard US (MFN) duty plus a 10% additional duty under Section 301, collected since 24 July 2026. Across garments from India the range is 1.2–32% + 10%. The duty depends on the garment, the fibre and whether the fabric is woven or knitted, not on the size of the shipment.
| Garment | Fibre and construction | Standard (MFN) duty | Total with Section 301 |
|---|---|---|---|
| Dresses | Cotton, woven | 8.4% | 18.4% |
| Dresses | Viscose / rayon, woven | 16% | 26% |
| Dresses | Silk, woven | 6.9% | 16.9% |
| Dresses | Cotton, knitted | 11.5% | 21.5% |
| Kaftans | Cotton, woven | 8.4% | 18.4% |
| Kaftans | Silk or linen, woven, loose robe/cover-up cut | 1.2% | 11.2% |
| Skirts | Cotton, woven | 8.2% | 18.2% |
| Skirts | Polyester, woven | 16% | 26% |
| Skirts | Viscose / rayon, knitted | 8% | 18% |
| Scarves and stoles | Silk, woven | 1.2% | 11.2% |
| Scarves and stoles | Viscose / rayon, woven | 5.3% | 15.3% |
| Scarves and stoles | Cotton, woven | 11.3% | 21.3% |
The IEEPA tariffs and the 25% Russian-oil duty ended in February 2026. A law of 18 September 2026 allows up to 100% extra duty on goods from the largest buyers of Russian oil and gas, but an Executive Order of 16 October 2026 waives that duty until further action, so it is not charged on Indian goods.
Fees that now apply to every entry
Losing de minimis also brings low-value shipments into the customs fee system. CBP’s user fees for Fiscal Year 2027, required as of October 1, 2026, include:
- Merchandise processing fee: an ad valorem rate of 0.3464 percent, with a minimum of $34.58 and a maximum of $670.86.
- Informal entry or release: $2.77 if automated and not prepared by CBP personnel, $8.30 if manual and not prepared by CBP personnel, and $12.45 if manual and prepared by CBP personnel.
- Express consignment carrier or centralised hub facility fee: $1.38 per individual waybill or bill of lading.
- Dutiable mail fee: $7.61.
On a small, low-value parcel a fixed minimum can outweigh the duty itself. Which fees apply depends on the entry type and the carrier, so check with your customs broker which ones your shipments will attract, and whether grouping several orders into one entry would reduce them.
The value duty is charged on
US duty is normally charged on transaction value: the price actually paid or payable for the goods when sold for export to the United States. Discounts the buyer actually takes reduce it; a rebate agreed after importation does not. The price is increased by these items, to the extent they are not already included:
- packing costs incurred by the buyer;
- any selling commission incurred by the buyer;
- the apportioned value of any assist, such as materials or tools the buyer supplies for production;
- any royalty or licence fee the buyer must pay as a condition of the sale;
- any proceeds of resale or use of the goods that go back to the seller.
Transaction value excludes international freight and insurance, so those charges should be shown separately on the invoice. On an ex-factory price, foreign inland freight is not added. Where the price includes foreign inland freight, it forms part of the value unless it is identified separately and the goods were placed with a carrier for through shipment, shown by a through bill of lading. A clear commercial invoice that states the garment, fibre, construction and price is the simplest way to make sure a low-value shipment is assessed correctly.
Check your own garment
We manufacture women’s dresses, kaftans, skirts and scarves in India and can describe the fibre and construction of each style on the invoice to support your US entries. Talk to us about your next order.
Sources
- White House: Suspending Duty-Free De Minimis Treatment for All Countries
- Merchandise Processing Fee FY2027 (91 FR 48398)
- 19 CFR 152.103 — transaction value
Indicative information from official sources, written 14 November 2026. Rates verified on against the official tariffs. It is not a customs ruling; confirm with your customs broker before you rely on it.
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