US CBP Passenger Duty-Free Limits

# USA $800 De Minimis Rule (Section 321): 19 U.S.C. 1321 Legal Framework & Reforms

Section 321 of the Tariff Act of 1930 (coded as 19 U.S.C. 1321(a)(2)(C)) is the statutory legal provision authorizing U.S. Customs and Border Protection (CBP) to admit qualified low-value import consignments free of duty, taxes, and formal customs entry processing. Expanded under the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA) from $200 to $800 USD, Section 321 became the operational foundation for modern cross-border e-commerce into the United States. This legal reference guide details Section 321 mechanics, daily importer limits, entry types, and the regulatory reforms enacted in 2025 and 2026.

Legal Definition & Statutory Requirements of 19 U.S.C. 1321

To qualify for duty-free Section 321 clearance into the United States, an import consignment must satisfy strict statutory requirements:

1. Daily Value Threshold ($800 Limit):

The total fair retail value of merchandise imported by one person (or business entity) on one day must not exceed $800 USD.

2. Consolidated Shipment Restrictions:

CBP strictly prohibits importers from splitting a single high-value commercial order into multiple smaller packages shipped on the same day to bypass the $800 limit.

3. Excluded Merchandise Categories:

Section 321 duty-free clearance does NOT apply to commodities subject to Anti-Dumping Duty (ADD) or Countervailing Duty (CVD), goods governed by Partner Government Agencies (PGAs) requiring formal permits (FDA, EPA, USDA, ATF), or quota-restricted merchandise.

Section 321 Clearance Entry Types: Manifest vs. Type 86

CBP processes Section 321 shipments under two distinct electronic entry protocols:

1. Standard Section 321 Manifest Clearance: Cleared directly off the ocean, air, or truck manifest submitted by express carriers (FedEx, UPS, DHL). Does not require 10-digit HTSUS classification codes, provided the shipment contains no PGA-regulated goods.
2. ACE Entry Type 86 (Automated Commercial Environment): An electronic entry option introduced by CBP allowing customs brokers to submit 10-digit HTSUS codes electronically. Entry Type 86 allows low-value parcels containing PGA-regulated goods (e.g., FDA-regulated cosmetics or medical devices) to clear customs tax-free while satisfying federal agency reporting mandates.

The 2025/2026 De Minimis Reform Landscape

Between 2025 and 2026, executive orders and congressional trade legislation fundamentally transformed Section 321 operations:

• May 2025 China Exemption Suspension: Section 321 de minimis eligibility was fully suspended for all commercial consignments originating in China and Hong Kong, requiring all parcels to pay standard HTSUS, Section 301, and Section 122 tariffs.
• August 2025 Global E-Commerce Restrictions: Congress enacted mandatory tariff reporting on all commercial e-commerce parcels entering the US, ending duty-free entry for foreign online retailers.

Worked Landed Cost Example: Legacy vs. Active 2026 Entry

Let us compare the customs cost for a $500 USD apparel parcel imported from China into Los Angeles under legacy Section 321 versus active 2026 customs rules.

Order Parameters:

• Product: Mens Cotton Shirts ($500.00 USD Retail Value)
• HTSUS Code: 6205.20.20 (16.5% MFN Duty Rate)
• Section 301 Tariff Rate: 7.5% (China List 4A)

Financial Comparison Table:

| Cost Component | Legacy Section 321 Entry | Active 2026 Customs Entry |

|---|---|---|

| Entered Goods Value | $500.00 USD | $500.00 USD |

| Basic Duty (16.5% HTSUS) | $0.00 (Exempt) | $82.50 USD |

| Section 301 Tariff (7.5%) | $0.00 (Exempt) | $37.50 USD |

| Informal Entry MPF Fee | $0.00 (Exempt) | $2.67 USD |

| Total Customs Cost | $0.00 USD | $122.67 USD (24.5% Landed Cost) |

How to Use Our Section 321 Compliance Calculator

To evaluate US de minimis eligibility:

1. Input your Shipment Retail Value in USD.
2. Select your Country of Origin (verifying active China/global suspension status).
3. Input HTSUS codes to test whether the merchandise requires PGA filings or Entry Type 86.
4. Generate instant itemized reports showing duty-free eligibility or active CBP tariff liabilities.

Frequently Asked Questions

Can a business import $800 every day under Section 321?

Yes. The statutory limit under 19 U.S.C. 1321 applies per individual or business entity per day, provided shipments represent separate bona fide orders.

What is the penalty for illegally splitting shipments under Section 321?

CBP issues civil monetary penalties under 19 U.S.C. 1592 for intentional shipment splitting, assessing fines up to the domestic value of the merchandise.

Does Section 321 cover international postal mail (USPS)?

Yes. Postal shipments valued at $800 or less historically cleared under Section 321, subject to postal customs clearance protocols.

CBP Electronic Enforcement & Automated Type 86 Filings

For cross-border e-commerce sellers shipping into the United States:

• ACE Automated Portal Integration: Customs brokers transmit Entry Type 86 data via the Automated Commercial Environment (ACE), verifying 10-digit HTSUS codes, consignee names, and fair retail values in real time.
• Recordkeeping Compliance: Maintain commercial invoices and manifest records for 5 years to defend against CBP audit inquiries into daily $800 importer limits.

Strategic Guidance for Cross-Border E-Commerce Merchants

Navigating US de minimis compliance following recent 2025/2026 reforms:

• Delivered Duty Paid (DDP) Transition: Online merchants shipping to US consumers must shift from DDP shipping models to integrated checkout tariff engines calculating HTSUS duties at purchase.
• Carrier Express Manifest Filings: Express carriers submit Automated Commercial Environment (ACE) manifests 4 hours prior to air cargo arrival in the US to verify $800 daily consignee limits.
• Informal Entry MPF Surcharges: Informal entries under $2,500 that do not qualify for Section 321 incur a fixed Informal Merchandise Processing Fee ($2.67 to $11.87).
• Recordkeeping & Audit Trail: E-commerce merchants must retain order logs, carrier waybills, and commercial invoices for 5 years for CBP post-clearance audits.

Summary of Section 321 De Minimis Compliance Rules

For US importers and e-commerce sellers:

• Statutory Authority: 19 U.S.C. 1321(a)(2)(C) (Section 321 of the Tariff Act of 1930).
• Daily Importer Limit: $800 USD fair retail value per person or business entity per day.
• ACE Entry Options: Manifest Clearance (standard items) vs Entry Type 86 (PGA-regulated items requiring 10-digit HTSUS codes).
• Active Reforms: Full suspension of de minimis eligibility for China/Hong Kong origin goods in 2025/2026.

Frequently Asked Questions & Operational Tips

To ensure smooth customs compliance and financial modeling:

• Customs Audit Trail: Maintain all commercial invoices, bill of lading contracts, customs entry receipts, and bank wire confirmations for 5 years to defend against post-clearance audits.
• Pre-Import Rulings: Request a binding administrative ruling from customs authorities prior to shipping novel or complex products to guarantee HS classification and tariff rates.
• Duty Drawback Recovery: Reclaim up to 99% of duties paid if imported goods are subsequently re-exported unused or destroyed under customs supervision.