Section 321 & De Minimis: The $800 Import Threshold Explained
April 7, 2026 · 6 min read
Section 321 allows imports valued under $800 to enter the US duty-free. It's how platforms like Shein and Temu ship billions in goods without paying tariffs — and it's under intense scrutiny.
What Is Section 321?
Section 321 of the Tariff Act of 1930 (19 USC 1321) allows goods with a fair retail value of $800 or less to enter the United States free of duty and tax, when imported by one person on one day.
Key details:
- Threshold: $800 per person per day (raised from $200 in 2016)
- No formal entry required — goods clear with minimal paperwork
- No duties, no MPF, no HMF — completely fee-free
- Applies to all countries — including China (with recent exceptions)
Why Section 321 Matters Now
The de minimis threshold has become one of the most debated trade policy issues because of how dramatically it's been exploited by e-commerce platforms:
- 2016: Congress raised the threshold from $200 to $800
- 2023: Over 1 billion Section 321 shipments entered the US — up from 140 million in 2016
- Shein and Temu ship individual packages directly from Chinese warehouses to US consumers, each under $800, avoiding all tariffs
- Revenue loss: Billions in uncollected duties annually, creating a competitive disadvantage for US retailers and importers who pay full tariffs on bulk shipments
Recent Changes and Restrictions
The Section 321 loophole has been progressively tightened:
- Section 301 exclusion: Products subject to Section 301 tariffs from China are increasingly being excluded from de minimis treatment
- Enhanced data requirements: CBP now requires more detailed information on de minimis shipments, including 10-digit HTS codes
- Proposed legislation: Multiple bills have been introduced to lower the threshold or eliminate it for certain countries
- Executive action: Restrictions on de minimis for goods subject to Section 301 and 232 tariffs
Who Can Use Section 321?
Section 321 applies when ALL of these conditions are met:
- The shipment's fair retail value is $800 or less
- It's imported by one person on one day
- The goods are not subject to restrictions (e.g., certain Section 301 items)
- The goods are not commercial shipments being split to avoid duties
- The goods don't contain restricted items (alcohol, tobacco, certain textiles)
Section 321 vs. Formal Entry
| Feature | Section 321 (≤$800) | Formal Entry (>$2,500) |
|---|---|---|
| Duties | None | Full HTS rate |
| MPF | None | 0.3464% |
| HMF | None | 0.125% |
| Sec 301/232 | Varies* | Full additional rate |
| Paperwork | Minimal | Full entry filing |
| Customs broker | Not required | Required for most |
*Some Section 301 products are now excluded from de minimis treatment
Impact on Different Business Models
E-Commerce (DTC from China)
If you ship individual orders from China directly to US consumers (each under $800), Section 321 has been a massive advantage. But this is the model under the most regulatory pressure. Plan for changes.
Traditional Importers (Bulk Shipments)
If you import in bulk (containers, pallets), Section 321 doesn't apply — you're filing formal entries and paying full duties. The de minimis loophole actually hurts you by giving DTC competitors a tariff advantage.
Small Businesses (Samples & Small Orders)
Legitimate small purchases and samples under $800 still qualify for de minimis. This is the original intent of the law and is unlikely to change.
What to Do Now
- Don't build your business model around de minimis — The threshold is likely to be lowered or restricted further
- Know your HTS codes — Even de minimis shipments increasingly require them. Use our HTS Code Lookup
- Calculate your duty exposure — Know what you'd pay if de minimis goes away. Use our tariff calculator
- Monitor legislative changes — Multiple bills are active. Subscribe to our tariff alerts to stay informed