Section 321 is a U.S. customs provision that allows goods valued at $800 or less to enter the country duty-free and without formal customs entry. This exemption has traditionally helped streamline imports and reduce costs for low-value shipments. It played a crucial role in enabling faster, more efficient cross-border trade, especially for eCommerce businesses.
However, as of August 29, 2025, Section 321’s global de minimis exemption has been suspended, meaning all low-value imports now require formal entry and may be subject to duties, regardless of their value or origin. This change marks a significant shift in U.S. import regulations that sellers and logistics providers must adapt to quickly to avoid delays and increased costs.
Understanding Section 321
Section 321 allows shipments of low-value goods to enter the U.S. duty-free under specific conditions. It sets clear limits on shipment value and frequency, directly impacting cross-border trade, especially for e-commerce businesses.
Definition and Purpose
Section 321 is a provision under U.S. Customs law that permits duty-free and tax-free importation of shipments valued at $800 or less. It applies to shipments imported by a single individual per day. This limits paperwork and customs duties, reducing operational barriers for small-scale imports.
Originally designed to simplify customs processing, Section 321 helps expedite shipment clearance for low-value goods. It directly supports smaller importers and e-commerce merchants by lowering the cost and complexity of bringing products into the U.S. market.
Key Provisions
Shipments Section 321 must not exceed a value threshold of $800. Only one shipment per day per importer qualifies, meaning larger or multiple shipments require formal customs entry and possible duties. The goods must be for personal or commercial use but can’t include restricted items.
Documentation for these shipments is simplified, minimizing delays. However, any shipment valued even $1 above the $800 limit triggers full customs review, duties, and possible taxes. This creates a strict compliance requirement for importing businesses.
Historical Background
Section 321 originates from the Tariff Act of 1930 but gained significant attention with the rise of global e-commerce. The $800 de minimis threshold was introduced to accommodate modern trade flows and reduce administrative burdens.
Recently, the U.S. government suspended Section 321 for all countries effective August 29, 2025. This action ended the previous duty-free import benefit for low-value goods globally. The suspension expanded requirements for formal customs entry, affecting Canadian and other foreign sellers notably.
| Year | Event |
| 1930 | Section 321 enacted in Tariff Act |
| Early 2000s | $800 value threshold introduced |
| August 2025 | Global suspension of Section 321 announced |
Compliance and Implications
Section 321 impacts importers with specific rules on eligibility, documentation, and operational benefits and limits. Enforcement changes require careful attention to legal criteria and paperwork to avoid penalties or delays.
Eligibility Criteria
Section 321 applies only to shipments valued at $800 or less that enter the U.S. duty- and tax-free. The importer must be the owner or purchaser of the goods. Shipments must be sent directly from one person to another without consolidation or repackaging by brokers or third-party logistics providers.
Certain prohibited items, including tobacco, alcohol, and hazardous materials, are excluded regardless of value. Importers must also ensure that goods come from foreign sellers or manufacturers, as domestic transfers do not qualify.
This rule benefits small, low-value shipments primarily used by e-commerce sellers or individuals. However, the August 29, 2025 suspension of Section 321 de minimis has narrowed eligibility, requiring importers to adapt their shipping and customs processes.
Documentation Requirements
Accurate and complete documentation is critical under Section 321. Customs entry requires detailed commercial invoices with clear item descriptions, values, and country of origin.
Advanced data submission through the Automated Commercial Environment (ACE) system is now mandatory. ACE demands additional data elements such as importer identification numbers and shipment tracking information.
Failure to provide compliant paperwork causes delays, inspections, and possible duty assessments. Importers must also maintain thorough records for at least five years, supporting claims for Section 321 eligibility in case of audits.
Documentation must clearly separate Section 321 shipments from those subject to other customs entry types, such as T86, to ensure smooth clearance.
Benefits and Limitations
Before its suspension, Section 321 reduced costs by allowing low-value goods to enter the U.S. without duties or extensive customs procedures. This expedited clearance benefited high-volume, low-value e-commerce shipments and cross-border trade.
Post-suspension, importers face increased duties, fees, and compliance complexity. While the removal curbs abuse of the exemption, it impacts cost-efficiency and fulfillment strategies.
Industries relying heavily on fast, low-cost imports now integrate warehousing and compliance into unified systems to mitigate the regulatory changes. The limitation on shipment types and values requires businesses to reassess their supply chains and cost models.
