Section 321 De Minimis $800 – How It Works, Who Qualifies

Section 321 of the Tariff Act of 1930 allowed any shipment valued at $800 or less to enter the United States duty-free with no formal customs entry, no Merchandise Processing Fee, and no customs bond. For a decade it was the foundation of cross-border e-commerce. In 2025 and 2026 it was systematically dismantled.

Understanding what remains, what changed, and what the cost structure looks like now is essential for any seller importing goods into the US or shipping internationally to US customers.

What Section 321 Was and How It Worked

Section 321 of the Tariff Act of 1930, codified at 19 USC 1321, established the de minimis exemption. The threshold was raised from $200 to $800 in 2016 under the Trade Facilitation and Trade Enforcement Act.

Under the original provision, a shipment valued at $800 or less per person per day could enter the US under a simplified customs process:

No duties assessed regardless of product category or country of origin.
No Merchandise Processing Fee (MPF), which is 0.3464 percent of the shipment value on formal entries with a minimum of $31.67.
No customs bond required.
No formal entry summary (CBP Form 7501).
Clearance based on a carrier manifest, typically within hours of arrival.

The provision applied per person per day. A single recipient could receive one qualifying shipment per day from any origin. Commercial shipments could also qualify, but the $800 applied per shipment.

By 2024, CBP was processing approximately 1.36 billion de minimis shipments per year, roughly 4 million per day. The average shipment value was $54. The provision had grown far beyond its original intent of reducing administrative burden on low-value personal imports and had become the structural backbone of direct-to-consumer cross-border e-commerce from China.

What Changed in 2025 and 2026 – The Timeline

The elimination of de minimis did not happen in one step. It happened in stages across 2025 and 2026.

May 2, 2025: De minimis eligibility eliminated for all shipments originating from China and Hong Kong. Postal shipments from China began facing duties of $80 to $200 per item or applicable IEEPA tariff rates, whichever is higher. Express carrier shipments from China began facing full duty assessment.

August 29, 2025: Executive Order 14257 expanded the suspension of de minimis treatment to shipments from all countries worldwide. Not just China. All origins.

July 4, 2025: The “One Big Beautiful Bill Act” signed into law codified elements of the de minimis restrictions, providing legislative foundation for what had previously been executive action only.

February 2026: A White House proclamation confirmed the suspension of de minimis treatment continues indefinitely with no restoration date announced.

The practical result: as of 2026, there is no $800 duty-free threshold for any shipment from any country. Every imported package now faces duty assessment, MPF, and formal or informal entry requirements regardless of value.

Some sources published before August 2025 still describe the de minimis exemption as applying to non-China countries. Those sources reflect the state of the law before August 29, 2025. They are out of date for 2026 shipments.

What Shipments Cost Now Without De Minimis

The cost difference between de minimis treatment and formal entry is significant for low-value packages.

Example: A $150 consumer goods shipment from Vietnam, Home and Kitchen category, 6% duty rate.

Under de minimis (pre-2025): $0 duty, $0 MPF, $0 formal entry cost. Total customs cost: $0.

Under 2026 formal entry requirements:
Duty: $150 × 6% = $9.00
MPF: $150 × 0.3464% = $0.52 (minimum $31.67 applies on standalone formal entries, but informal entry Type 11 for shipments under $2,500 carries lower processing fees)
Informal entry processing fee: varies by broker, typically $20 to $50 for a single shipment

For most individual consumer orders under $2,500, CBP allows informal entry (Type 11) instead of formal entry (Type 01). Informal entry requires less documentation than formal entry but still requires duty payment.

The cost impact on a $150 shipment: $9 duty plus approximately $30 to $50 in broker and processing fees. Total added cost: $39 to $59. On a $150 product that previously shipped duty-free, that is a 26 to 39 percent cost increase from customs alone, before any carrier rate changes.

For sellers who previously used Section 321 to ship direct-to-consumer from overseas warehouses, this cost must now be either absorbed, passed to the consumer, or eliminated by restructuring fulfillment to US-based inventory. Use the HS Duty Estimator to calculate the duty and MPF on your specific products at their HTS code and shipment value.

HTS Codes Are Now Required Even for Low-Value Shipments

One of the enforcement changes accompanying the de minimis elimination is the requirement for 10-digit HTS codes on all Type 86 entries, which were previously used for de minimis shipments with minimal data.

Before 2025, a carrier could file a Section 321 de minimis entry with a general product description and value. No HTS code was required. This low-data environment was one reason CBP struggled to screen the 4 million daily de minimis shipments for prohibited goods.

Under the enhanced data requirements now in effect, all entries including those that would previously have qualified as de minimis must include:
The full 10-digit HTS code for each product.
Country of origin.
Seller identity (not just the consolidator or carrier).
Full product description matching the HTS classification.

For sellers who never had to classify their products because they shipped under de minimis, this requirement forces an HTS classification exercise on every SKU. The HS Code Finder Guide covers the complete USITC lookup process including how to verify your supplier’s code and when to request a CBP binding ruling.

What Is Still Prohibited Regardless of Value

Even when de minimis was fully in effect, certain categories were never eligible. These exclusions remain in effect and have been expanded.

Products subject to antidumping or countervailing duty (AD/CVD) orders were never eligible for de minimis treatment, even before the 2025 changes.

Products subject to Section 301 tariffs from China were progressively excluded beginning in 2024.

Products requiring FDA prior notice, FCC equipment authorization, EPA compliance, or USDA phytosanitary clearance must still comply with all regulatory requirements regardless of shipment value. De minimis never exempted products from agency requirements, only from duties and formal entry paperwork.

Shipments split intentionally to stay below the threshold were never legal. With the threshold eliminated, this is now moot for duty purposes, but the enforcement apparatus built to detect splitting remains active. Civil penalties of $5,000 to $10,000 per violation apply to anyone caught misrepresenting shipment values or artificially dividing commercial orders. CBP has invested in detection systems specifically targeting this practice.

What to Do Now If Your Business Relied on Section 321

The sellers who treat the de minimis elimination as permanent and restructure now will maintain margins. Waiting for a reversal means absorbing the cost on every shipment in the interim.

Option 1: Move to US-based fulfillment.
Import inventory in bulk via container, pay duty once at the full shipment level, and fulfill direct-to-consumer from a US warehouse or 3PL. Duty is paid upfront on the imported inventory, not on each consumer shipment. Domestic shipping to US consumers is not subject to import duty.

Option 2: Evaluate sourcing origins.
Before August 2025, non-China-origin goods still qualified for de minimis. That window closed on August 29, 2025. However, sourcing from Vietnam, India, Mexico, or other countries may still carry lower duty rates than China under MFN rates or free trade agreements. Lower duty rates reduce the landed cost impact even under formal entry requirements.

Option 3: Recalculate landed cost and reprice.
If your current pricing assumed zero import duty on direct-to-consumer shipments, your landed cost model needs rebuilding. Calculate the duty rate for each SKU using the correct HTS code, add MPF and entry processing fees, and determine whether the current selling price covers the new total landed cost with an acceptable margin.

The HS Duty Estimator calculates estimated duty plus MPF on your specific HTS code and shipment value, giving you the total customs cost to plug into your landed cost model.

Rates verified June 19, 2026. See changelog.

FAQ

Q: What is Section 321 de minimis in the US?
A: Section 321 of the Tariff Act allowed shipments valued at $800 or less per person per day to enter the US duty-free without formal customs entry. The $800 threshold was established in 2016 and was the foundation of direct-to-consumer cross-border e-commerce. As of August 29, 2025, the de minimis exemption has been suspended for all countries worldwide. A February 2026 White House proclamation confirmed the suspension continues with no restoration date.

Q: Is the $800 de minimis exemption still in effect in 2026?
A: No. The exemption was suspended for China and Hong Kong on May 2, 2025, and expanded to all countries via Executive Order 14257 on August 29, 2025. A February 2026 White House proclamation confirmed the suspension continues indefinitely. Every imported shipment now faces duty assessment and entry requirements regardless of value. Sources describing de minimis as still active for non-China countries reflect pre-August 2025 information and are out of date.

Q: What does a package cost to import without de minimis?
A: Duty plus MPF plus entry processing. On a $150 consumer goods shipment with a 6% duty rate: $9.00 duty plus MPF plus $20 to $50 in broker or processing fees for informal entry. Total added cost: $39 to $59 on a $150 product. Use the HS Duty Estimator to calculate the total customs cost for your specific product and shipment value.

Q: Are HTS codes required for low-value shipments now?
A: Yes. Under the enhanced data requirements now in effect, all entries must include the full 10-digit HTS code for each product, country of origin, seller identity, and a full product description matching the HTS classification. Before 2025, de minimis entries required minimal data. The new requirements apply to all entries regardless of value. If you have not previously classified your products, the HS Code Finder Guide covers the complete USITC lookup process.