Section 321 was a U.S. Customs and Border Protection (CBP) regulation that allowed low-value shipments—those valued at $800 or less—to enter the U.S. duty-free and with minimal customs paperwork. This policy greatly benefited e-commerce by simplifying and speeding up the import process for small parcels.
As of August 29, 2025, the Section 321 de minimis exemption has been fully suspended, meaning nearly all shipments to the U.S. are now subject to customs checks, duties, tariffs, and processing fees. This shift significantly impacts importers, especially small businesses relying on low-cost shipments.
Understanding how Section 321 worked and how its suspension affects current trade practices is essential for anyone involved in global shipping or e-commerce. The changes require adapting shipping strategies and compliance efforts to avoid unexpected costs.
Understanding Section 321 CBP
Section 321 CBP outlines specific rules for importing low-value shipments into the United States without paying duties or taxes. It sets limits on shipment value and defines criteria for eligibility, while recent changes have affected its application and enforcement.
Legal Definition and Background
Section 321 is part of U.S. Customs and Border Protection regulations that allow certain low-value shipments to enter the country duty-free. Historically, it was designed to simplify customs procedures for small parcels by exempting them from formal entry requirements.
The authority originally arose to facilitate efficient clearance and reduce the burden on customs for shipments below a de minimis threshold. This provision has been especially important for e-commerce, enabling millions of small shipments to clear quickly without additional fees.
Customs Value Thresholds
The key feature of Section 321 is the de minimis value threshold. Before 2016, this limit was set at $200. It was later raised to $800, allowing shipments valued at $800 or less, per day, per recipient, to enter duty-free.
This value threshold means goods below $800 generally avoid customs duties and taxes, speeding up processing. Shipments exceeding this amount require formal entry and may be subject to duties, taxes, and additional paperwork.
Eligibility Criteria
To qualify under Section 321, shipments must meet several requirements. The shipment value cannot exceed the $800 threshold. The goods must be for personal use or resale but not part of a commercial shipment exceeding this threshold.
Other conditions include that the shipment should be sent directly to the consignee without consolidation or multiple packages pretending to be one shipment. The exemption applies only to specific shipment types, typically small parcels and low-value commercial goods.
Recent Regulatory Updates
As of August 29, 2025, the use of Section 321 for duty-free imports has been suspended, ending this long-standing exemption. Shipments that departed origin before this date may still qualify if they arrive by September 15, 2025, but this grace period is not guaranteed.
This regulatory shift requires businesses and consumers to prepare for the reinstatement of standard customs duties and paperwork on shipments that were previously exempt. The change impacts e-commerce supply chains significantly, as long favored shipments now face new customs procedures.
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Section 321 CBP Import Procedures
Section 321 allows for the duty-free import of low-value shipments into the U.S., streamlining customs processing. Specific steps guide the entry process, with defined documentation requirements and important limitations. Compliance is essential to avoid delays and penalties.
Entry Process Steps
The importer or customs broker files an entry under Section 321, using a specialized entry type called Type 86. This entry type was introduced in 2019 to expedite processing of shipments valued at $800 or less.
Upon arrival, Customs and Border Protection (CBP) uses advance data from e-commerce supply chain partners to assess risk and facilitate clearance. If the shipment qualifies, it bypasses formal customs entry, reducing processing time.
Entry filing is limited to the importer of record or authorized customs broker. Shipments exceeding $800 or those failing to meet criteria must use standard entry procedures.
Required Documentation
Key documents include the invoice, shipment manifest, and proof of value not exceeding $800. The importer must submit accurate advance data to CBP, often through the electronic data interchange (EDI) system.
A customs bond is generally not required for Section 321 shipments. However, importers must maintain records for audit purposes, including purchase receipts and shipping documents.
Only authorized parties can submit Section 321 claims using Entry Type 86. All documentation should clearly identify the shipment’s value and origin to ensure eligibility for entry under this provision.
Exclusions and Limitations
Section 321 excludes certain products such as alcohol, tobacco, and firearms, regardless of value. Shipments exceeding the $800 de minimis threshold cannot use this entry type.
As of August 29, 2025, Section 321’s de minimis exemption ended for all countries, meaning most shipments now require formal customs entry and potentially duties, except for specific exceptions still in place.
Products subject to import restrictions or requiring special permits must go through standard customs procedures. Shipments that do not meet all compliance requirements will be rejected under Section 321.
Compliance Best Practices
Importers should verify shipment values do not exceed the $800 threshold prior to filing. Accurate and complete data submission reduces the risk of inspection and delays.
Maintaining detailed records of transaction values, shipment contents, and importer information supports audit readiness. Importers must ensure only eligible goods are declared under Section 321.
Working with experienced customs brokers familiar with Entry Type 86 ensures correct entry filing and adherence to CBP rules. Proactive communication with CBP and staying updated on regulatory changes is advised.
