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Section 321 imports refer to a specific U.S. Customs policy allowing shipments valued at $800 or less to enter the country duty-free and tax-free. This provision, known as the de minimis threshold, aims to reduce costs and simplify the import process for low-value goods, benefiting many eCommerce businesses and individual consumers.
Since May 2025, changes have limited Section 321’s application, particularly suspensions on shipments from certain countries like China and Hong Kong due to trade and security concerns. Understanding these updates is crucial for importers looking to navigate shifting regulations and manage costs effectively.
The appeal of Section 321 imports lies in faster customs processing and fewer administrative burdens, which helps businesses reduce delays and expenses. However, recent policy adjustments mean companies must stay informed to adapt their supply chains and avoid unexpected tariffs or inspections.
Understanding Section 321 Imports
Section 321 allows certain low-value goods to enter the U.S. without paying duties or going through full customs procedures. It provides cost savings and faster processing for eligible shipments but comes with strict rules and recent changes impacting its use.
Definition and Purpose
Section 321 is a U.S. Customs and Border Protection (CBP) provision that permits duty-free imports for shipments valued at $800 or less per recipient per day. Its intent is to streamline import processes by reducing paperwork and inspection requirements on low-value goods. This accelerates delivery times and lowers costs for importers, especially in ecommerce.
However, from August 29, 2025, the duty-free exemption under Section 321 is globally suspended. This means all low-value imports now require formal customs entry and duties regardless of origin. Before this suspension, Section 321 was vital for small shipments, but new rules have significantly changed its application.
Eligibility Requirements
To qualify under Section 321, shipments must not exceed $800 in value when entering the U.S. per person or entity per day. The goods must be imported by one person or company and be intended for personal or business use, not for resale beyond the low-value limit.
Certain restrictions apply. Shipments from China and Hong Kong have faced suspension since early 2023 due to trade and security concerns. The global suspension in 2025 expanded these requirements, applying strict controls on all countries and all carriers.
Importers must monitor shipment values carefully and use compliant shipping methods to avoid duties, taxes, or delays.
Popular Goods Imported
Section 321 was commonly used for importing small consumer goods, including electronics accessories, clothing, cosmetics, and small home goods. It supported ecommerce businesses that ship frequently in low-value parcels.
Other popular items included promotional goods, samples, and replacement parts. These products often fall under the $800 threshold, allowing duty-free entry and faster customs clearance.
The provision was especially beneficial for cross-border sales from countries like Canada, Mexico, and the EU. Since the global suspension, importers in these categories now face increased customs requirements and potential duties.
CBP Compliance for Importers
Importers using Section 321 must provide accurate declared values and comply with CBP reporting standards. Goods must be classified correctly and accompanied by proper documentation, including invoices and shipping labels.
To avoid penalties, importers often work with experienced carriers or third-party logistics providers familiar with Section 321 requirements. Technology solutions like inventory and shipment tracking software help ensure compliance with value limits and proper declaration.
Since the global suspension, CBP requires formal customs entry for all low-value shipments, increasing the need for detailed documentation and compliance vigilance. Failure to comply may result in customs delays, fines, or additional duties.
Section 321 Import Procedures and Best Practices
Section 321 imports require precise adherence to specific rules to qualify for duty-free entry. Proper handling of the shipping process, accurate documentation, and effective customs brokerage are critical. Avoiding common errors can prevent delays and additional fees.
Shipping Process Overview
Shipments under Section 321 must have a declared value of $800 or less. This limit applies per recipient per day. The shipment typically bypasses standard customs duties and paperwork, allowing faster clearance.
Carriers or freight forwarders must ensure the value is clearly stated and that the goods qualify under the provision. The shipment should be small, usually a single package or multiple small shipments to the same recipient, to maintain compliance.
Certain product types or shipments from restricted regions may face additional scrutiny or suspensions. Importers should verify whether their items meet current regulatory guidelines before shipment.
Documentation and Declarations
Accurate documentation is essential for smooth Section 321 processing. The shipment’s commercial invoice or customs declaration must clearly state the total value and description of goods.
The importer or shipper should provide the correct Harmonized Tariff Schedule (HTS) code when possible. While customs forms are simplified compared to regular imports, any missing or inaccurate data risks rejection or delay.
Electronic filing of entry information via systems like ACE (Automated Commercial Environment) helps speed clearance. Documents must confirm that the shipment adheres to the $800 de minimis value rule and all regulatory criteria.
Role of Customs Brokers
Customs brokers facilitate compliance with U.S. import regulations and handle communication with customs authorities. For Section 321 shipments, brokers verify shipment eligibility and ensure accurate entry of paperwork.
They help resolve discrepancies that could trigger inspections or duties. Brokers also guide importers on changes in regulations, such as the suspension of Section 321 for shipments from certain countries.
Using a customs broker can reduce clearance time and avoid costly mistakes, especially for first-time or high-volume importers navigating Section 321’s specific requirements.
Common Mistakes to Avoid
Misdeclaring the shipment value is a frequent issue leading to penalties or loss of Section 321 benefits. Importers must declare the fair retail value in the country of shipment honestly.
Failing to separate shipments per recipient or exceeding the $800 limit invalidates the de minimis exemption. This error can result in duties, inspections, and delays.
Incorrect or incomplete documentation is another common problem. Missing HTS codes, wrong descriptions, or failing to file electronically can cause rejection of the shipment at customs.
Ignoring temporary suspensions or restrictions for shipments from specific countries leads to seizures or fines. Staying updated on current regulations is critical for risk management.
