Section 321 / De Minimis FAQ

Section 321 (19 USC 1321) is the statute that describes de minimis. It provides admission of articles free of duty and import taxes, but the aggregate fair retail value of articles imported by one person on one day must not exceed $800. Congress raised the threshold to $800 in 2015. De minimis entries also require significantly less documentation and are exempt from user fees.

There is no weight restriction. The value is capped at $800 per day, per importer, and you can use the exemption daily — as long as it has not been suspended for your country of origin (see the key dates below).

Alcohol, tobacco, and certain weapons are always excluded — even $1 worth of alcohol or firearms invalidates your de minimis claim.

For FDA-regulated goods: shipments valued under $800 may be cleared without a formal entry only if both the 10-digit tariff number and the applicable FDA product code appear on the invoice.

Entry Type 86 was introduced by CBP to facilitate duty-free entries of qualifying goods valued at or below $800. It allows simplified electronic documentation via the Automated Commercial Environment (ACE), often eliminating the need for a formal entry process — saving time and reducing costs for eligible de minimis shipments.

CBP actively looks for split shipments (also known as "smurfing") — shipments intentionally broken apart from a single order to stay below the $800 threshold. If CBP deems shipments intentionally split, they will consolidate the total value and charge full duties. Section 321 specifically states the privilege "shall not be granted in any case in which merchandise covered by a single order or contract is forwarded in separate lots."

No. The U.S. suspended the de minimis exemption for China and Hong Kong effective May 2, 2025. Mail shipments from China/HK are now subject to duty — initially set at 30%, raised to 120%, and then lowered to 54% effective May 14, 2025 via executive order.

This closure sent shockwaves through e-commerce. Retailers that relied on de minimis entries to bypass duties now face significant new compliance and cost challenges.

Effective August 29, 2025, an Executive Order suspended duty-free de minimis treatment for low-value shipments (valued at or under $800) from all countries. These shipments are no longer eligible for duty-free treatment and are subject to:

• All relevant admissibility requirements
• Assessment of all applicable duties, taxes, and fees
• Formal entry filing in ACE by a qualified party

Yes — duty-free de minimis treatment still applies to:

• Goods covered under 50 U.S.C. § 1702(b) such as certain donations and informational materials
• Bona fide gifts — articles genuinely given outright without compensation (not including bonus or promotional items)
• Mail flats, documents, and letters that do not contain merchandise

Every shipment now requires:

• Commercial invoice with full valuation
• Packing list
• Accurate HTS classification
• Payment of duties, taxes, and brokerage fees
• Formal ACE entry filing by a licensed customs broker or importer of record

• Consolidate shipments — combine orders to spread brokerage costs across larger volumes.
• First Sale Rule — duties assessed on the original manufacturer price, not the final retail price.
• HTS classification review — ensure products use the most favorable duty rate available.
• Country of origin optimization — reassess supply chains to source from duty-favorable countries.
• Digital-first brokers — automate ACE filings and get real-time tariff updates to reduce overhead.