U.S. Customs Rules Are Reshaping Cross-Border E-Commerce
Author(s): Scott Douglas Jacobsen
Publication (Outlet/Website): The Good Men Project
Publication Date (yyyy/mm/dd): 2025/07/09
Brian Akdemir, Director of E-Commerce at Bahdos, a premier fine jewelry retailer, discussed the impacts of new U.S. customs rules on cross-border e-commerce. With shipments over $800 now requiring formal entry, Akdemir highlights rising operational complexity, delays, and costs. He urges small businesses to innovate via partnerships and localized fulfillment. Larger carriers are more prepared, though mid-sized ones may struggle. Technologies like AI-powered customs platforms and blockchain offer promise. While consumers may tolerate slower shipping, expectations for product quality and experience remain. Akdemir stresses transparency and adaptability to remain competitive in this evolving landscape.
Scott Douglas Jacobsen: What is the impact on cross-border e-commerce with increased operational complexity of these new US customs?
Brian Akdemir: The new rules have specified in US customs that no shipment of more than $800 will undergo entry processing. This will create more complications for cross-border e-commerce businesses. The companies will have to develop two shipping plans: one of them will be only for the higher-value products, while the other will include all those that are below $800. This means putting additional systems into place, teaching employees new techniques on monitoring shipments for the right actions to be taken. Additional administrative work plus possibilities for mistakes will delay shipping, incur increased costs, and render the consumer experience not quite as smooth, all detrimental to cross-border sales.
Jacobsen: What will be the impact on small businesses?
Akdemir: Taking into account the fact that small companies related to international e-commerce find the recent laws difficult, it may be an opportunity for innovation. Smart small business owners would turn their minds to partnership models, inventory-sharing programs, or other novel ideas to assume the operational hassles that cross-border fulfillment entails. By modifying their methods and seeking ways to minimize formal entrance processing concerns, small businesses may sustain their competitiveness and continue attracting a global clientele.
Jacobsen: What will be the impact on international shipping?
Akdemir: With the new $800 threshold, shipping carriers may have to invest in automated solutions to help deal with the anticipated increase in formal customs clearances. This may include the creation of some new technologies to facilitate a faster entrance process requirement. However, the deployment of such an automated system may take time, resulting in interim inefficiencies and possible delays, as the industry adjusts to the new terrain. Carriers will have to balance compliance and speed, and this may result in higher costs that get passed on to businesses and consumers.How are you advising clients to redesign their fulfillment strategies?
Jacobsen:How are you advising clients to redesign their fulfillment strategies?
Akdemir: As a luxury goods retailer, I advocate focusing on creating more localized fulfillment networks. Instead of depending on a centralized worldwide distribution model, we are looking at deliberately grouping more products nearer important regional markets. This enables us to quickly handle lower-value shipments under the $800 customs threshold and still be able to effectively service higher-value orders that will call for formal clearance. I also support alliances with specialized logistics companies that are able to manage the complexity of customs on our behalf.
Jacobsen: What specific technologies are most promising for automating cross-border compliance?
Akdemir: I believe that the most promising technologies are AI-powered customs brokerage platforms and robotic process automation tools. For formal customs clearances, these can simplify data entry, document handling, and regulatory checks needed. Blockchain-based supply chain visibility solutions also catch my attention since they might help to simplify cross-border cargo tracking and compliance.
Jacobsen: How do you foresee consumer expectations shifting?
Akdemir: Given the additional difficulties of international delivery, I expect they will grow more accepting of somewhat longer delivery times. Their very high expectations for brand experience, product quality, and general purchase path will still hold, though. Companies will have to be quite open about their capacity for fulfillment and limitations as well as find strategies to keep a high customer experience in face of the new complexity.
Jacobsen: How prepared are major carriers to respond operationally to the customs complexities?
Akdemir: Right now, the main shipping carriers seem to be rather unprepared to different degrees. The larger, more established players like FedEx and UPS have made significant investments in customs brokerage technology and process automation. They’re better positioned to handle the anticipated spike in formal clearances. However, some mid-sized and regional carriers appear to be still catching up on adapting their operations. There may be some interim service disruptions and delays as the entire industry works to get up to speed on the new compliance requirements.
Jacobsen: Thank you for the opportunity and your time, Brian.
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