De Minimis Threshold and Section 321 Entries
Shipments under $800 enter duty-free — how businesses legally use de minimis thresholds
- De Minimis Threshold and Section 321 Entries
- Legitimate vs Abusive Use of De Minimis
- Impact of Proposed De Minimis Reform
De Minimis Threshold and Section 321 Entries#
Section 321 allows shipments valued at $800 or less to enter the US duty-free and with minimal customs formalities. E-commerce companies have leveraged this by shipping directly from foreign warehouses to individual consumers. However, Section 301 tariff goods and certain restricted items don't qualify for de minimis treatment.
Legitimate vs Abusive Use of De Minimis#
Legitimate: direct-to-consumer shipments from overseas that genuinely fall under $800 per package per person per day. Abusive: splitting larger shipments into sub-$800 packages (structuring), using multiple consignees at the same address, or misrepresenting values. CBP is increasingly scrutinizing de minimis entries — penalties for abuse include seizure and fines.
Congress is considering lowering the threshold or eliminating de minimis for certain countries.
Impact of Proposed De Minimis Reform#
Congress is considering lowering the threshold or eliminating de minimis for certain countries. If passed, this would affect millions of packages daily and fundamentally change cross-border e-commerce economics. Companies relying on de minimis should model the impact of a $200 threshold or complete elimination.
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- Shipments under $800 enter duty-free — how businesses legally use de minimis thresholds
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What is the business impact of de minimis threshold and section 321 entries?
Shipments under $800 enter duty-free — how businesses legally use de minimis thresholds
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