What is the "de minimis" threshold in customs duties?

The "de minimis" threshold in customs duties refers to an exemption for goods valued below a specific amount. This legal concept allows low-value imports to enter a country without incurring customs duties or taxes, facilitating trade and reducing the administrative burden for both customs authorities and importers.

Typically, each country sets a specific dollar amount that defines this threshold. If the value of the goods is below this threshold, customs duties are not required, which encourages smaller goods to be imported more easily. This is particularly helpful for e-commerce and small businesses that deal with lower-value items.

Understanding the "de minimis" threshold is important for compliance with customs regulations, as it affects how much tax needs to be paid when importing goods. The other options mentioned do not accurately capture the essence of what "de minimis" entails in customs; for example, it is not about maximum duty rates, quantity limits, or licensing requirements, but rather about providing an exemption based on the value of the goods.