De Minimis Threshold: Section 321 Shipments Explained

What Is the De Minimis Threshold?

Section 321 of the Tariff Act of 1930, as amended, establishes the de minimis threshold — the maximum value of a shipment that can enter the United States duty-free and without formal customs entry. Currently set at $800 per person per day, this provision was designed to reduce administrative burden on CBP and importers for low-value shipments. A package worth $800 or less shipped directly to an individual consumer can enter the US without paying any duties, taxes, or fees, and without filing a formal customs entry.

How Section 321 Works

When a shipment qualifies for Section 321 treatment, the customs clearance process is dramatically simplified. The carrier or express consignment operator files a manifest with CBP listing the shipment details, but no formal entry summary (CBP Form 7501) is required, no duties or MPF are assessed, and no customs bond is needed. The shipment is released based on the manifest information alone, typically within hours of arrival. This is the mechanism that enables same-day or next-day delivery of cross-border e-commerce purchases.

Eligibility Requirements

• Fair retail value of the shipment must not exceed $800.
• Shipment must be imported by or for the personal use of one person on one day.
• The goods must not be subject to AD/CVD orders, Section 301 tariffs (for certain products), or other trade remedies.
• The goods must not require a license or permit from a US government agency.
• The goods must not be prohibited from entry (counterfeit, controlled substances, etc.).
• Commercial shipments (company to company) can also qualify, but the $800 applies per shipment, not per product.

The E-Commerce Explosion

The volume of Section 321 shipments has exploded with the growth of cross-border e-commerce. In 2015, approximately 140 million de minimis shipments entered the US. By 2024, that number exceeded 1 billion. Platforms like Temu, Shein, and AliExpress have built their US business models around de minimis shipping, sending individual packages directly from Chinese warehouses to US consumers, each priced under $800 to avoid duties entirely. This has raised concerns about revenue loss, unfair competition with domestic retailers, and the difficulty of screening a billion small packages for safety and intellectual property violations.

Proposed Changes to De Minimis

As of 2025, there is significant legislative and regulatory momentum to reform the de minimis threshold. Proposed changes include:

• Lowering the threshold from $800 to $200 or even $10 for shipments from countries subject to Section 301 tariffs (primarily China).
• Requiring formal entry filing for all de minimis shipments (eliminating the simplified clearance process).
• Imposing duties on de minimis shipments from specific countries while maintaining the exemption for others.
• Requiring importers to provide HTS classification even for de minimis shipments.
• Enhanced data requirements: product descriptions, country of origin, and manufacturer information for all Section 321 shipments.
• Daily aggregate limits: preventing a single entity from splitting large commercial shipments into multiple sub-$800 packages.

Impact on Different Business Models

• DTC e-commerce from China: Would face the most disruption if de minimis is lowered or Section 301 exclusion is expanded.
• US small businesses buying supplies online: Would face new duties on international purchases under $800.
• International gift shipments: May be exempted from changes as legislators distinguish between commercial and personal shipments.
• US retailers: Support de minimis reform as a competitive leveling measure — they pay duties on inventory while competitors ship duty-free.
• Express carriers (FedEx, UPS, DHL): Face increased processing burden if all shipments require formal entry.

Current Compliance Requirements

Even under current rules, Section 321 shipments are not completely unregulated. CBP requires carriers to submit advance electronic data (the ACE manifest) for all de minimis shipments. Products regulated by other agencies (FDA, CPSC, EPA) must still meet those agencies' requirements regardless of value. And the $800 threshold applies to fair retail value, not just the declared value — if CBP determines the goods are worth more than $800, the shipment loses de minimis eligibility.

What Importers Should Do Now

• Monitor legislative developments: Changes to de minimis could be implemented quickly once legislation passes.
• Assess your exposure: If your business model depends on Section 321 treatment, quantify the duty impact of potential changes.
• Develop contingency plans: Consider establishing US inventory (bonded warehouse or FTZ) as an alternative to direct-to-consumer cross-border shipping.
• Ensure compliance with current rules: Do not split shipments to stay under $800 — this is evasion and CBP is actively targeting it.
• Classify your products: Even if you do not need HTS codes now, having them ready will speed the transition if formal entry requirements are imposed.

“The $800 de minimis threshold has been remarkably stable, but the explosion of cross-border e-commerce has put it under political pressure from both parties. Smart importers are preparing for change rather than hoping it does not happen.”

— Camtom Team