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Unlocking US eCommerce: A Guide to Section 321 and the $800 De Minimis Rule

Time to read: 6 minutes

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?

  1. Cost Reduction: Eliminating duties on individual orders directly boosts profit margins and supports competitive pricing. 
  1. 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

  • 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. 
  • July 9, 2025 (CBP Bulletin CSMS #65581188): Rescinds all prior de minimis exemptions for FDA-regulated products, effective immediately. 
  • 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. 
  • June 4, 2025: Section 232 duties doubled to 50% for steel, 20% for aluminum (UK remains at 25%). 
  • 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?

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 

Required Data Elements 

  • 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

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. 

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