Boxzooka is proud to announce that our founder and CEO, Brendan Heegan, was recently featured in the Vogue Business article “De minimis disrupted: The fallout for fashion” by Jessica Binns, published on February 10, 2025. Brendan was asked to discuss how possible changes to the de minimis rule could affect the fashion industry.
The de minimis rule previously allowed low-value individual parcels to enter the US duty-free. The threshold was, most recently, $800; anything less than this sum was not subject to customs duties or taxes. (When set originally in 1938, the threshold was $1 or $5, depending on the object’s use.)
Single packages, namely apparel from fast fashion companies based in China, are some of the biggest points of conversation around this topic. In 2023, more than one billion shipments (with a value of $54.5 billion) avoided taxes under the de minimis rule.
On February 1, 2025, President Trump signed an executive order that added a 10% tariff on Chinese imports. He later rescinded this on February 5, pending an appraisal from the Secretary of Commerce.
With the potential ramifications of the fashion industry, both domestic and international, in question, Vogue Business reached out to industry experts, including Brendan Heegan. Brendan was asked to share his insight into how businesses, especially smaller fashion brands, are adjusting to these possible changes to trade regulations.
Brendan Heegan’s Report to Vogue Business
In the Vogue Business article, Heegan explained how Boxzooka’s smaller fashion clients are already considering alternative sourcing strategies.
Some are exploring domestic manufacturing options, while larger brands are expanding their supply chains into Southeast Asia and India to mitigate the effects of tariffs.
Brendan also discussed how Boxzooka is helping its clients reevaluate their logistics strategies to keep thriving in a post-de minimis industry. Heegan reported that global brands are seeing the shift as an “opportunity” instead of “a setback.”
International brands are analyzing “bulk imports of finished goods into US fulfilment centres” rather than the current direct-to-consumer (DTC) model. Brendan said this could minimize the effect of increased duties and reduce bottlenecks in distribution processes.
About Boxzooka
As an award-winning third-party logistics provider (3PL), Boxzooka helps eCommerce companies comply with regulatory changes, stay ahead of industry shifts, and grow their businesses.
Boxzooka’s technology-driven, fast, reliable 3PL services include eCommerce fulfillment, 3PL Pick and Pack, 3PL Kitting Services, and more. Our proprietary technology, carefully-chosen locations, and platform integrations help brands scale quickly and sustainably with smooth logistics operations.
For more information on how Boxzooka can help your business adapt to the evolving supply chain and trade landscape, send us a note here.
