Section 321 refers to 19 U.S.C. 1321, which established the de minimis threshold — the value below which imported goods were exempt from customs duties and fees. Previously set at $800 per person per day, this provision allowed millions of small packages to enter the United States without a formal customs entry, duty payment, or customs broker involvement. The de minimis exemption has now been suspended for all countries, meaning every shipment regardless of value requires formal entry.
Why It Matters for Importers
The suspension of Section 321 represents one of the most significant changes to U.S. import policy in recent years. Previously, over 4 million packages per day entered the U.S. under the de minimis exemption — most of them from China via direct-to-consumer e-commerce platforms. These shipments bypassed customs duties entirely, creating a competitive disadvantage for domestic retailers and importers who brought goods through formal channels.
With de minimis now suspended, every shipment entering the United States — regardless of value — is subject to duties, taxes, and formal customs entry requirements. For businesses that relied on the $800 exemption to avoid duties on individual orders, this means a fundamental restructuring of their import model. For traditional importers, it levels the playing field.
Key Details
- The de minimis threshold was raised from $200 to $800 in 2016 under the Trade Facilitation and Trade Enforcement Act.
- At its peak, Section 321 shipments accounted for over 1.36 billion packages per year entering the U.S.
- The exemption was first suspended for Chinese-origin goods, then extended to all countries.
- Shipments that previously cleared under Section 321 now require an HTS classification, customs bond, and formal entry filing.
- Express carriers and postal services must now collect duties on all international shipments.
What This Means Going Forward
Businesses that shipped individual orders directly to U.S. consumers under the de minimis exemption now need to establish formal import operations, including obtaining an importer number, securing a customs bond, and engaging a customs broker for entry filing. The compliance infrastructure that was optional under Section 321 is now mandatory.
For a complete analysis of the de minimis suspension and its impact on importers, read our article on the end of de minimis.