9 global shifts in low-value import regulations

Countries are intensifying actions on imported low-value goods due to concerns over tax revenue losses, local industry impact, and fair competition.

According to the “Consumer Goods and Retail Outlook 2025” report by the Economic Intelligence Unit(EIU) “In 2025, easing inflation will help global retail volumes grow by 2.2%, though consumer confidence will remain weak. India will emerge as a dominant force, with China’s growth slowing. Regulatory pressures will challenge online retailers. Spending on essentials and leisure will rise, but furniture and white goods will lag.”

The report further highlighted that, amid trade tensions and economic slowdown, China’s dominance in Asia will wane as India’s retail market outpaces it, though from a smaller base. Regulatory hurdles, including stricter de minimis exemptions on trade tariffs, will increase challenges for online retailers in China. Spending on furniture and white goods will grow slowly due to weakened housing markets in developed countries while spending on leisure, entertainment, and tourism will see stronger growth.

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Here are 10 global shifts in low-value import regulations, data sourced from respective countries compiled by EIU.

1. Turkey: Tightening de minimis limits

Turkey recently reduced the de minimis threshold for online goods imports from €150 (around US$166) to €30. This change means goods valued below this amount are now subject to import duties, affecting a significant portion of online purchases. In addition, the customs tax rate on goods from non-EU countries has increased to 60%. The adjustment, implemented in August 2024, reflects Turkey’s ongoing efforts to manage the flow of low-value imports.

2. United States: Revising de minimis exemptions

The United States is taking steps to revise its import exemption rules under the de minimis framework. Current discussions include removing items like textiles, apparel, and footwear from the US$800 de minimis exemption. If passed by late 2024, the measure would mean these items would no longer qualify for tax-free import status, imposing duties on low-cost items previously exempt.

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3. Indonesia: High duties on selected imports

Indonesia has proposed significant changes, aiming to introduce duties ranging from 100% to 200% on imports of clothing, ceramics, and footwear. This measure is part of a broader strategy to reduce reliance on imported goods in these categories. Although proposed in 2024, a set implementation date is yet to be confirmed.

4. Thailand: VAT on low-value goods

Thailand has introduced a 7% Value Added Tax (VAT) on imported low-value goods, specifically targeting those valued below THB1,500 (about US$41). This tax, applied on items brought in between July and December 2024, seeks to enhance domestic revenue collection and level the playing field for local businesses.

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5. Malaysia: E-commerce tax on imported goods

Malaysia implemented a 10% tax on most imported low-value goods sold online, effective from January 2024. By focusing on digital commerce, this regulation seeks to address revenue gaps arising from untaxed e-commerce imports, impacting a significant segment of the retail market.

6. Mexico: Raised tariffs on apparel and footwear

Mexico has escalated tariffs on imported apparel and footwear, particularly from countries with no free trade agreements, including China. This policy, active from April 2024 to April 2026, aims to protect domestic manufacturers from low-cost imports and support local industry development.

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7. European Union: Considering de minimis threshold changes

The European Union (EU) is considering abolishing the €150 de minimis threshold, a proposal currently under discussion. If enacted, the measure would require all low-value imports to be taxed, shifting the balance in favour of local sellers. Though no implementation date has been set, the proposal underscores the EU’s intent to address discrepancies in the tax treatment of imported and locally produced goods.

8. South Africa: VAT on imported clothing

South Africa has introduced a VAT on all imported clothing items, effective as of September 2024. The move aligns with the nation’s efforts to create fairer competition for local textile manufacturers and improve revenue streams from imports.

9. Brazil: Tax on cross-border purchases

Brazil has implemented a 20% tax on cross-border purchases valued up to US$50, beginning in July 2024. This measure affects a range of imported goods and seeks to curb the high volume of small-value imports that enter the country untaxed.