Definition of De Minimis Exemption

What does the term "De Minimis Exemption" mean? What is the definition of the term "de minimis exemption"?

"De Minimis" is a Latin expression that means "pertaining to minimal things" or "with trifles". In short, you can consider "de minimis" to mean "not worth our time".

The "de minimis exemption", as it applies to the United States, is a law that allows shipments "bound for American businesses and consumers valued under $800" to enter the country free of duties and taxes.

This is a big deal for businesses that rely heavily on importing, and consumers that order items from other countries.

Without the "De Minimis" exemption, a package with $50 worth of goods that arrives from overseas would incur fees and taxes of somewhere around $40. With the "De Minimis" exemption, the package could enter the country tax-free.

The "De Minimis" exemption is of great importance to countries that export heavily to the United States - namely, China.

Without this exemption, the cost of doing business with China would soar, as a $50 package of goods would suddenly cost nearly twice as much to import.

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