What Is De Minimis? Section 321 Duty-Free Threshold Explained

De minimis is the maximum value of an imported shipment that can enter a country without owing duties or taxes. In the United States, Section 321 of the Tariff Act sets this threshold at $800 per person per day. If your shipment's fair retail value is $800 or less, it clears customs with no duty, no Merchandise Processing Fee (MPF), and no formal entry filing — saving both money and paperwork. This provision processed over 1 billion shipments in fiscal year 2023 alone, making it the single most-used import pathway into the US.

How Section 321 Works

When a shipment enters the US valued at $800 or less, the carrier or customs broker can file an informal entry under Type 86 or simply declare the goods under Section 321. CBP does not assess duties or taxes on these shipments. The $800 threshold applies to the fair retail value of the goods in the country of shipment — not the transaction price. This means the value CBP considers is what the item would sell for at retail in the origin country, not necessarily what the US buyer paid.

Who Can Use De Minimis?

Any person — individual consumer or business — can import goods under Section 321, provided the shipment meets the value threshold. There is no registration or license required. However, the $800 limit is per person per day. A single recipient cannot receive multiple de minimis shipments on the same day from the same consignor. Businesses that split shipments to stay under the threshold risk penalties for evasion.

What Is Excluded from De Minimis?

Not everything qualifies for duty-free treatment under Section 321. The following categories are excluded regardless of value:

• Goods subject to antidumping or countervailing duties (AD/CVD) — These special duties apply no matter the shipment value.
• Products subject to Section 301 tariffs from China — As of 2026, CBP has proposed eliminating de minimis eligibility for all goods from countries subject to Section 301 or 232 actions.
• Tobacco and alcohol — Federal excise taxes always apply.
• Goods requiring permits or licenses — FDA-regulated products, USDA-regulated agricultural items, and CPSC-regulated consumer products still require compliance documentation.
• Textiles and apparel — While technically eligible, textile shipments face enhanced scrutiny and often require formal entry regardless of value.

The E-Commerce Explosion and Section 321

Section 321 has become the backbone of cross-border e-commerce. Platforms like Shein, Temu, and AliExpress ship millions of individual packages directly to US consumers, each valued under $800, avoiding the duties that traditional importers pay on bulk shipments. CBP data shows that de minimis shipments grew from 140 million in 2014 to over 1 billion in 2023 — a 700% increase. Critics argue this creates an unfair advantage for foreign sellers over domestic retailers and US-based importers who pay full duties on container-load shipments.

2026 Changes: What's Coming

The de minimis threshold is under serious legislative and regulatory pressure. Several developments are shaping the future of Section 321:

• Executive Order proposals to eliminate de minimis for shipments from China, Russia, Belarus, and other countries subject to trade actions.
• The bipartisan De Minimis Reciprocity Act would lower the threshold to match the exporting country's own de minimis level — meaning shipments from China would lose duty-free status entirely.
• CBP has proposed requiring additional data elements (10-digit HTS codes, country of origin, seller information) for all Section 321 shipments, even if duties are not assessed.
• Enhanced enforcement using AI and data analytics to detect split shipments, undervaluation, and misuse of the provision.

De Minimis vs. Formal Entry: When to Use Each

For shipments over $800, you must file a formal entry (CBP Form 3461 and 7501), post a customs bond, pay duties and MPF, and work with a licensed customs broker. For shipments under $800, Section 321 eliminates all of this. However, even for de minimis shipments, you must still comply with all other regulatory requirements — FDA prior notice, FCC equipment authorization, EPA compliance, and any applicable partner government agency regulations. Duty-free does not mean regulation-free.

Strategies for Importers

• Track your de minimis exposure — If a significant portion of your imports relies on Section 321, model the cost impact of losing this benefit.
• Diversify supply chains — Consider sourcing from countries that are unlikely to lose de minimis eligibility (e.g., USMCA partners).
• Consider consolidation — For some businesses, consolidating small shipments into formal entries with proper classification may be more cost-effective long-term.
• Stay compliant — CBP is increasing audits of de minimis shipments. Ensure accurate valuations and proper documentation.

How Camtom Helps

Whether your shipments qualify for de minimis or require formal entry, Camtom's AI-powered platform helps you classify products accurately, calculate landed costs including all duties and fees, and stay ahead of regulatory changes. Our tariff engine automatically applies the correct duty rates, Section 301 surcharges, and trade agreement preferences so you know your true cost before the goods ship.

Ready to get clarity on your import costs? Try Camtom's free tariff lookup tool or schedule a demo to see how automated classification can save your team hours every week.