News / Getting over the operational shock of de minimis reform

© Flynt

Freight forwarders and customs brokers are being forced to rethink how they capture and manage shipment data, following the removal of de minimis on key ecommerce flows, according to Descartes Systems Group. 

Speaking to The Loadstar at Manifest 2026, Scott Sangster, its general manager of logistics service providers, said the shift from manifest-level filings to individual customs entries had created a sharp increase in compliance workloads. 

“Probably the biggest impact for our customers has been around ecommerce and de minimis removal,” Mr Sangster said. “They can’t do it at a manifest level any more. It has to be at the individual entry level, so the volume of filings has gone up significantly.” 

While US tariff changes have dominated headlines, he said the operational shock from de minimis reform had been more immediate for forwarders and brokers handling high-volume, low-value shipments. 

“We were able to switch customers from de minimis filings to standard customs entries relatively easily,” he said. “But it required them to have more information than they used to have at their fingertips.” 

The result, he explained, has been a renewed focus on data accuracy and earlier capture of shipment information. 

“In many cases, we’ve talked with customers about how the movement of the data is almost as important as the movement of the goods,” Mr Sangster said. 

And of course, automation is playing a growing role in document processing and customs data entry.  

Mr Sangster noted that Descartes was deploying AI to extract structured data from invoices and shipment documents, recommend HS codes based on historical imports, and reduce false positives in denied party screening. 

In some cases, he noted, this had delivered productivity improvements of 30%-40%, but urged that full automation remained sensitive in customs brokerage. 

“The broker is the one holding the licence and the liability,” he said. “They may be comfortable letting 95% flow through, but they still want to review certain classifications.” 

With regulatory change continuing globally, he argued that forwarders and brokers were uniquely positioned to deepen relationships with shippers by using data more strategically. 

“Freight forwarders and customs brokers understand the entire flow,” Mr Sangster said. “That puts them in a position to manage risk and add more value than ever before.” 

According to him, logistics service providers are increasingly being asked to interpret tariff rulings and advise customers on compliance strategy, rather than simply processing paperwork. 

More sophisticated operators, he added, were shifting from reactive responses to regulatory changes towards building more resilient, flexible supply chains. 

“Five years ago, it was ‘how do I get this shipment through?’,” he said. “Now it’s more strategic, like ‘how do I design my supply chain to be resilient and flexible in the face of regulatory change?’”