Cross-Border E-Commerce: The Legal Challenges

Selling across borders online turns every small parcel into an import, and that brings a stack of legal obligations many e-commerce sellers don’t see coming — customs, intellectual property, taxes, and data rules all at once. The landscape also just shifted dramatically: the $800 de minimis exemption that let low-value shipments enter the U.S. duty-free has been suspended (effective August 29, 2025, and continuing into 2026), so the old “small parcels ship free” assumption no longer holds. This guide maps the main legal challenges of cross-border e-commerce from a trade-law perspective.

Customs — and the End of De Minimis

For years, the Section 321 de minimis rule let shipments valued at or under $800 enter the U.S. free of duty and with minimal formality — the engine behind a lot of direct-to-consumer import models. That changed: de minimis treatment was suspended in 2025 and remains suspended in 2026, meaning low-value e-commerce shipments are now subject to normal duties and entry requirements. The practical consequences for sellers: every shipment needs correct classification (HTS) and valuation, duties must be planned into pricing, and the smooth low-value clearance many businesses relied on is gone. (This is a fast-moving policy area — confirm the current rule before relying on it.)

Intellectual Property and Counterfeits

Cross-border e-commerce is a hotspot for IP problems in both directions. Sellers must ensure their own goods don’t infringe others’ trademarks, copyrights, or patents in the destination market — and brand owners use CBP trademark recordation to have Customs detain infringing or counterfeit imports. Marketplaces and gray-market resale add complexity; genuine goods sold outside authorized channels raise the gray-market issues that can get shipments seized.

Taxes: Sales Tax and Beyond

Tax is a second compliance layer independent of customs duties. Since the Supreme Court’s Wayfair decision, U.S. states can require out-of-state (and foreign) sellers to collect sales tax based on economic nexus — a sales or transaction threshold — even with no physical presence. Cross-border sellers into the U.S. have to track state-by-state thresholds, and selling out of the U.S. brings the destination country’s VAT/GST and import-tax rules into play.

Data, Consumer Protection, and Other Rules

Selling to consumers across borders also implicates:

• Data privacy — collecting customer data can trigger regimes like the EU’s GDPR or U.S. state privacy laws, depending on where customers are.
• Consumer protection — disclosure, returns, and advertising rules vary by jurisdiction.
• Product and labeling rules — goods may be subject to FDA, CPSC, or other agency requirements at import, the same as any other shipment.

Frequently Asked Questions

Does the $800 de minimis exemption still apply to e-commerce imports?

No — as of 2026 the de minimis exemption is suspended (it was suspended effective August 29, 2025 and continued thereafter). Low-value shipments that once entered duty-free are now subject to normal duties and entry requirements. Because this is a fast-changing policy area, confirm the current rule before relying on it.

What customs obligations apply to cross-border e-commerce?

Each imported parcel must be correctly classified (HTS) and valued, with duties paid, and meet any other-agency requirements (FDA, CPSC, etc.). With de minimis suspended, sellers can no longer count on free, minimal-formality clearance for low-value shipments.

Do I have to collect U.S. sales tax on cross-border online sales?

Often, yes. After the Supreme Court’s Wayfair decision, states can require sellers — including foreign sellers — to collect sales tax based on economic nexus (a sales or transaction threshold), even without physical presence. Sellers must monitor each state’s thresholds.

What IP risks come with cross-border e-commerce?

Two-way risk: your goods must not infringe trademarks, copyrights, or patents in the destination market, and brand owners can use CBP trademark recordation to have Customs detain infringing or counterfeit imports. Gray-market resale of genuine goods can also lead to seizure.

Cross-border e-commerce is an import-compliance project as much as a sales channel — especially now that de minimis is gone. Reidel Law Firm helps online sellers with classification, duties, and import compliance on flat-fee terms. Get an import compliance memo.