What is de minimis value?

The term 'de minimis value' is often heard in international trade.

In the context of shipping and logistics, it refers to the value threshold at which a shipment is exempt from duties and taxes/VAT upon import into a particular country.

Different countries have various de minimis thresholds. Once a shipment's value surpasses this predetermined threshold, duties and taxes/VAT apply.

For example, members of the European Union 🇪🇺 who use the Euro as their currency all have the same de minimis thresholds. If the shipment's value is up to 150 EUR, it is exempt from duties. However, VAT is always charged regardless of the value. If the shipment's value is over 150 EUR, both duties and VAT apply.

The de minimis value is significant because it can substantially influence the total cost of an international transaction. Therefore, understanding the de minimis value of the destination country can help you estimate the overall cost of shipping, including potential import duties and taxes.

Forwardme offers a reference sheet with each country's de minimis values, which can help you plan your international shipping more effectively. Remember, these thresholds are subject to change as countries adjust their import policies, so always ensure to check the current de minimis value before proceeding with your shipment.