US Customs and Border Protection (CBP) confirmed that physical music formats like vinyl records, CDs and cassettes are exempt from new tariffs that took effect on Friday (August 28) because they are classified as “information materials” exempt from trade restrictions.
The exemption protects record collectors and music retailers from tariffs now applied to about 1.36 billion shipments of previously duty-free packages that enter the US annually.
The new policy changes the “de minimis” rule, where packages valued at $800 or less can enter the US without taxes or tariffs. The US maintained a $200 de minimis threshold until 2016, when Congress raised it to $800, one of the highest in the world. The higher limit had become a “pipeline for criminal shipments,” according to the Trump administration.
Shipments of low-value shipments skyrocketed to 1.36 billion in 2024 from 134 million in 2015, according to the CBP. The CBP claimed that in 2024 alone, de minimis shipments accounted for 98% of narcotics seizures by case count, 97% of counterfeit goods seized or over 31 million fake items, and 77% of health and safety seizures.
In July, US President Donald Trump signed an executive order suspending duty-free de minimis treatment for all countries. The new rules took effect on Friday.
However, physical formats qualify for protection under 50 U.S.C. § 1702(b), which exempts “certain donations and informational materials” from trade restrictions, according to a FAQ page set up by the CBP.
The United States’ Harmonized Tariff Schedule states that “publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds” are classified as “information materials.”
To address customer and client concerns, merchandise sellers Discogs and Bandcamp have introduced new guidelines.
Discogs said: “Simply put, music and informational media have always been exempt from tariffs and continue to be so at this time. This means neither sellers nor collectors on Discogs should be charged additional customs fees.”
However, the company said it “can’t guarantee how US Customs and each postal carrier will implement these exemptions.” Discogs advised sellers to provide clear descriptions of products by specifying “Informational Materials: phonograph (vinyl) record,” instead of “vinyl”.
“music and informational media have always been exempt from tariffs and continue to be so at this time. This means neither sellers nor collectors on Discogs should be charged additional customs fees.”
Discogs
Bandcamp — which sells apparel and other soft goods like shirts, hoodies, hats and totes in addition to vinyl and CDs — also introduced new features, allowing artists to restrict shipping to the US to avoid customs complications. Both companies advised sellers to use the correct Harmonized System (HS) codes when filling out shipment forms.
CNBC reported on Friday, citing Marianne Rowden, trade attorney and CEO of the E-Merchants Trade Council, that the change is expected to drive the costs to be paid by small and medium-sized businesses to over $71 billion.
The news outlet noted that the number of government postal offices shutting down shipments bound for the US has expanded to include Swiss Post, Japan Post and those of Australia, India, New Zealand, the U.K. DHL’s Deutsche Post and DHL Parcel Germany have also stopped shipments to the US last week (August 25).
“For shippers, this brings increased costs, complexity, and the need to adapt shipping setups to comply with new customs requirements.”
Andrew Williams, DHL Express America
Andrew Williams, CEO for DHL Express Americas, told CNBC: “For shippers, this brings increased costs, complexity, and the need to adapt shipping setups to comply with new customs requirements. They may also face longer processing times and additional administrative steps when importing lower-value goods.”
On Friday, the US Court of Appeals for the Federal Circuit ruled against Trump’s declaration of national emergencies when he imposed tariffs on several countries.
In response, Trump wrote on Truth Social over the weekend: “Today a Highly Partisan Appeals Court incorrectly said that our Tariffs should be removed, but they know the United States of America will win in the end. If these Tariffs ever went away, it would be a total disaster for the Country. It would make us financially weak, and we have to be strong.”
If these Tariffs ever went away, it would be a total disaster for the Country. It would make us financially weak, and we have to be strong.”
Donald Trump, US President
Meanwhile, analysts at New York-headquartered investment bank TD Cowen had earlier said that “Digital goods are unaffected by tariffs.”
They noted in April that the majority of revenue at Universal Music Group, Warner Music Group, and Spotify comes from subscription streaming, which “are unlikely to see meaningful increases in churn” even if the economy goes into recession.
Music Business Worldwide
