
Unlocking US eCommerce: A Guide to Section 321 and the $800 De Minimis Rule
Time to read: 6 minutes
The United States is one of the world’s largest eCommerce markets, with the National Retail Federation (NRF) forecasting that retail sales will reach between $5.42 trillion and $5.48 trillion in 2025. For international sellers, accessing this audience can be very rewarding, but customs duties and paperwork often eat into margins.
Section 321 of the Tariff Act provides a straightforward option for many low-value shipments. Often called the “$800 de minimis threshold,” it lets qualifying packages enter the US duty-free with lighter paperwork. Recent policy shifts and closer Customs and Border Protection (CBP) scrutiny have made the rules a bit harder to follow, though. This guide will explain how the exemption works today, clear up misconceptions about which items still qualify, and outline the steps you need to use it effectively.
TL;DR Summary
- What is Section 321? A US customs regulation that allows shipments valued at $800 or less to enter the country duty-free with a simplified clearance process.
- Biggest exclusions: As of May 2, 2025, no China/HK shipments; all FDA-regulated goods; various tariff categories.
- Key Challenges: CBP now strictly enforces daily limits, discourages shipment splitting, and requires more detailed data via Entry Type 86 and the Section 321 Data Pilot.
- Takeaway: By leveraging accurate data and a trusted logistics partner, Section 321 can significantly cut costs and accelerate delivery.
What Is Section 321 De Minimis?
At its core, Section 321 of the Tariff Act of 1930 is a customs exemption for low-value shipments. In 2016 the threshold was raised from $200 to $800, supercharging its relevance for the growing eCommerce industry.
Under this rule, a qualifying shipment valued at $800 or less can be imported by one person on one day without formal customs procedures and without incurring import duties and taxes. For businesses selling directly to US consumers, this provides two immense advantages:
- Cost Reduction: Eliminating duties on individual orders directly boosts profit margins and supports competitive pricing.
- Speed and Efficiency: Section 321 shipments typically clear customs much faster than formal entries, leading to shorter delivery times and a better customer experience.
Recent Policy Updates 2025
Before shipping, note these critical policy shifts:
China & Hong Kong Excluded
- Effective May 2, 2025: All Section 321 duty-free treatment ends for shipments from China or Hong Kong.
- Non-postal parcels: Subject to full duties upon formal entry.
- Postal parcels (≤ $800): Duty is either 120% ad valorem or $100 per item from May 2 through May 31, 2025; rising to $200 per item on or after June 1, 2025.
FDA-Regulated Goods Require Formal Entry
- July 9, 2025 (CBP Bulletin CSMS #65581188): Rescinds all prior de minimis exemptions for FDA-regulated products, effective immediately.
US-China Tariff Pause
- 12 May 2025: Under a mutual agreement, the U.S. rolled back most additional duties on Chinese imports from 145% to 30%, while China suspended its retaliatory rates (originally ~34%) down to a baseline 10% for 90 days.
Steel & Aluminum Tariffs Increased
- June 4, 2025: Section 232 duties doubled to 50% for steel, 20% for aluminum (UK remains at 25%).
North American Fentanyl-Related Tariffs
- March 4, 2025: Under IEEPA authority, a 25% tariff was applied broadly to imports from Canada and Mexico, with a reduced 10% rate on Canadian energy products.
Which Shipments Qualify?
Section 321 remains in effect, but its application is narrower than many sellers assume. The country of origin, product type, and applicable trade remedies now play a critical role in determining eligibility.
Criteria | Qualifies | Exclusions |
Value | ≤ $800 per person, per day | > $800 |
Country of Origin | Most countries | China and Hong Kong (effective May 2, 2025); goods under Section 301 tariffs |
Product Type | General consumer goods (electronics, apparel, books) | Alcohol, tobacco, firearms, and items regulated by FDA/USDA/other PGAs |
Shipment Frequency | One shipment per consignee per day | Splitting one order into multiple same-day parcels |
Note: Postal parcels from China/HK (≤ $800) pay the revised duties noted above and may require formal entry.
Required Data Elements
To file under Section 321, first gather the following shipment details (optional items are noted). When everything is in place, submit an Entry Type 86 filing through the ACE Portal:
- Importer of Record Number (optional): Employer Identification Number (EIN) or Social Security Number (SSN) of the party responsible for import compliance.
- Consignee Number (optional): EIN or SSN of the receiving party. Ensures accurate matching of shipments to individual end-users.
- Commodity Description: A clear, concise summary of each product (e.g., “cotton t-shirts, women’s sizes S–L”), providing CBP with enough detail to confirm eligibility.
- Harmonized Tariff Schedule Code (HTS code): The HTS code classifies imports for U.S. Customs. The first six digits identify a broad product category (e.g., “6109.10” for cotton T-shirts). Providing the full ten-digit U.S. HTS code pinpoints the exact item, lets CBP quickly confirm duty rates and Section 321 eligibility, and helps avoid delays.
- Total Value: The combined fair retail value of the goods, not to exceed $800 USD.
- Country of Origin: The nation where each item was manufactured or assembled.
- Quantity: The number of units or pieces per line item.
- Gross Weight: Total shipment weight.
- Tracking Number: The carrier’s unique shipment identifier, allowing both CBP and importer to monitor transit status.
- Shipper’s Name & Address: Full legal name and location of the sender. Confirms the export point.
- Consignee’s Name & Address: Full legal name and location of the recipient.
- Carrier Code: Standard Carrier Alpha Code (SCAC) or International Air Transport Association code (IATA).
- Port of Entry: The U.S. port where the goods will be admitted.
- Estimated Arrival Date: Projected date of arrival in the U.S.
Global De Minimis Comparisons
Before shipping to the US, make sure you know your country’s De Minimis thresholds, export documentation rules, and any taxes or duties. This preparation helps your parcels clear US customs smoothly.
Region / Country | De Minimis Threshold | Approx. USD | Notes |
United States | $800 USD | $800 | Section 321 clears parcels duty-free if value ≤ $800. Note: China & Hong Kong excluded as of May 2, 2025; FDA-regulated goods also require formal entry. |
European Union | €150 EUR | ~$163 | Applies per shipment. VAT applies on imports below threshold and is collected by carriers or declared at sale. Some member states (e.g. Germany) set lower caps. |
United Kingdom | £135 GBP | ~$170 | Duty waived under threshold. Domestic VAT (20%) still due at the point of sale unless the seller is VAT-registered in the UK and uses the postponed VAT accounting scheme. |
Canada | C$20 CAD | ~$15 | Duty-free below threshold, but federal GST (5%) and applicable provincial HST/GST may apply unless importer is registered and files returns. |
Australia | A$1 000 AUD | ~$680 | No customs duties for imports under A$1 000, but 10% GST applies on the import and must be prepaid by registered importers or collected at point of sale. |
Japan | ¥10 000 JPY | ~$68 | Customs duty exempt for parcels under threshold, though 10% consumption tax applies; carriers often collect tax on delivery. |
India | INR 10,000 (~$120 USD) | ~$120 | Imports under INR 10 000 per consignment exempt from customs duty; however, Integrated GST (IGST) applies at standard rates and must be remitted by the importer. |
Brazil | BRL 50 (~$10 USD) | ~$10 | Parcels under BRL 50 enter duty-free, but state-level ICMS, PIS and COFINS taxes may still apply on the CIF value—check local state rules for rates and filing. |
Mexico | ~$50 USD | ~$50 | Exempts duty for shipments ≤ $50, but 16% IVA (VAT) applies and must be paid on all imports; formal entry may be required for certain product categories. |
Singapore | SGD 400 (~$300 USD) | ~$300 | GST (8% or 9% depending on the year) zero-rated below threshold; restricted or regulated items (e.g. cosmetics, electronics) always require formal permits. |
South Korea | KRW 150 000 (~$125 USD) | ~$125 | Duty exemption up to KRW 150 000 per parcel; 10% VAT applies on the import value and is collected by the carrier or declared by the importer. |
Switzerland | CHF 62 (~$68 USD) | ~$68 | Duty-free under threshold; Swiss VAT (7.7%) applies on imports and is collected either at customs or by the postal carrier upon delivery. |
United Arab Emirates | AED 1,000 (~$275 USD) | ~$275 | Parcels under AED 1 000 exempt from customs duties; however, 5% VAT applies on the import value and must be remitted by the customs broker or carrier. |
Frequently Asked Questions
1. What’s the difference between Section 321 and Entry Type 86?
Section 321 is the legal exemption itself; Entry Type 86 is the electronic filing process in CBP’s ACE system used to claim that exemption.
2. Do I still need HTS codes?
Yes. For clearance under Entry Type 86, a 10-digit HTS code is required for each product to verify eligibility and avoid holds.
3. What if my shipment includes items regulated by Partner Government Agencies (PGAs)?
Section 321 does not cover goods requiring PGA oversight—such as FDA-regulated food, supplements, cosmetics, USDA-controlled agricultural products, or items subject to anti-dumping/countervailing duties. Those products must enter under a formal entry process, which includes the standard documentary requirements, potential inspections, and any applicable duties or fees.
4. What if my shipment accidentally exceeds $800?
It defaults to a standard informal entry (Type 11), incurring duties, taxes, and additional clearance fees.
5. Can I ship multiple orders on one bill of lading?
Yes—provided each parcel is under $800 and destined for a unique “ultimate consignee” on that day. Bulk billing alone won’t disqualify you.
6. What are the penalties for non-compliance?
Expect fines, shipment delays, and possible seizure if CBP detects value aggregation, misclassification, or unauthorized goods.
Conclusion
Section 321 can cut costs and speed delivery for low-value eCommerce shipments, provided you maintain accurate data, follow daily limits, and understand exclusions. Partnering with a logistics provider that automates customs data and ensures compliance will turn Section 321 into a strategic advantage, keeping costs down, delivery times short, and customers happy.
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