Section 321 Customs Entry of the U.S. Customs Code allows certain low-value shipments to enter the country without paying duties or taxes, provided the total value does not exceed $800. This provision simplifies customs processing and reduces costs for both businesses and individuals importing qualifying goods. It was designed to speed up trade and limit paperwork for low-value imports.Since February 2025, Section 321 has been suspended, affecting how these shipments are handled. The change requires importers to adjust their strategies for cross-border shipping and customs compliance. Understanding the mechanics and recent developments of Section 321 is essential for anyone involved in importing goods into the U.S.

Understanding Section 321 Customs Entry

Section 321 simplifies the import process for low-value shipments entering the United States. It defines specific criteria for shipments to qualify for duty-free entry, sets clear value limits, and establishes restrictions to enhance compliance while facilitating faster customs clearance.

Definition and Legal Background

Section 321 is a provision under the Trade Facilitation and Trade Enforcement Act (TFTEA) that permits the duty-free entry of certain inbound shipments to the U.S.It allows goods valued at $800 or less to be imported without formal customs entry or payment of duties and taxes.This provision aims to reduce administrative burdens for both importers and Customs and Border Protection (CBP).Originally part of the Tariff Act of 1930, Section 321 was updated in 2016 to raise the de minimis threshold from $200 to $800, encouraging low-value trade and speeding up customs processing.

Eligibility Criteria

To qualify for Section 321, shipments must meet several conditions.The shipment must be valued at $800 or less per day, per person, based on the fair retail price in the country of shipment.The goods must be imported by one person or entity, and the entry must be cleared under a single shipment or transaction.Certain products require additional documentation or oversight by a Partner Government Agency (PGA), which may disqualify shipments from Section 321 benefits.Shipments flagged for such oversight typically require Entry Type 86, a formal customs entry with extended data submission requirements.

Import Limits and Restrictions

The core limit is the $800 de minimis threshold, which caps the total commercial value eligible for duty-free entry.This limit resets daily, allowing multiple low-value shipments but controlling aggregate imports per day.Certain goods are excluded from Section 321 privileges, including tobacco, alcohol, and controlled substances.Additionally, shipments needing special regulatory inspections or documentation, like those subject to FDA or USDA oversight, may not qualify.CBP requires accurate manifest data for Section 321 entries to ensure proper enforcement and tracking.Fulfilling these requirements supports faster customs clearance, avoids unnecessary duties, and reduces entry processing times.

321 Sec Compliance and Best Practices

Compliance with 321 Sec requires precise adherence to specific filing rules, documentation standards, and avoiding common errors. Meeting these requirements ensures shipments clear U.S. customs efficiently and benefit from duty-free entry when eligible.

Filing Procedures

Section 321 shipments must be declared electronically to U.S. Customs and Border Protection (CBP). Importers or their agents need to use authorized filing methods that include submitting shipment value, country of origin, and importer information. The shipment’s fair retail value cannot exceed $800 to qualify.Filing must adhere to the required customs entry type and include accurate classification of goods. Failure to file properly can trigger delays and loss of duty-free status. Automated systems such as Entry Type 86 offer enhanced compliance data for shipments valued at $800 or less, improving clearance times for qualified imports.

Required Documentation

Essential documentation includes the commercial invoice accurately showing description, quantity, and value of the goods. The country of origin must be clearly stated as this affects eligibility and compliance checks.Importers must also provide a clear declaration for Section 321 claims during customs submission. This documentation supports the claim for duty-free treatment. Customs brokers or fulfillment partners usually assist in preparing and submitting these documents to avoid errors and penalties.

Common Mistakes to Avoid

One frequent error is undervaluing shipments or failing to provide a proper commercial invoice. Such mistakes lead to fines, shipment holds, or tariffs applied retroactively.Another common issue is misclassifying goods or omitting necessary importer details, which can cause customs to reject the entry or require additional scrutiny.Additionally, some importers overlook exclusions such as shipments originating from China, which, since recent rule changes, no longer qualify for duty-free entry under Section 321. Staying current with regulatory updates and maintaining accurate data prevents costly compliance failures.