Section 321 CBP of the U.S. Customs and Border Protection (CBP) code allows certain low-value shipments, valued at $800 or less, to enter the United States duty-free and with simplified customs procedures. This provision enables faster, less costly entry for small parcels, making it a key tool for e-commerce and small importers by reducing the need for formal customs entry.While Section 321 has traditionally helped streamline low-value imports, recent changes have affected its application, including suspensions and enhanced enforcement of value limits. Nevertheless, understanding Section 321 entry and its requirements remains critical for businesses managing U.S. imports, as it impacts how shipments are processed and cleared.CBP continues to test and adjust processes related to Section 321, including new entry types and pilot programs, highlighting the evolving nature of these regulations. Staying informed about these updates helps importers optimize their supply chains and avoid unexpected duties or delays.

Understanding Section 321 CBP Regulations

Section 321 allows for the duty-free importation of goods with specific value limits and eligibility requirements. It simplifies customs clearance by reducing paperwork and expediting low-value shipments. Certain exemptions and strict value criteria determine whether a shipment qualifies under this provision.

Definition of Section 321 Entry

Section 321, part of the Trade Facilitation and Trade Enforcement Act, permits shipments valued at $800 or less to enter the U.S. duty-free. This entry type is designed to reduce administrative overhead and speed up customs processing for low-value packages.The term "Section 321 Entry" refers to shipments eligible for this duty exemption without requiring a formal customs entry. It often aids e-commerce businesses by lowering import costs and improving delivery speed. The provision applies per day, per person, ensuring limits on the total value allowed.

Eligibility Criteria for Section 321

To qualify, shipments must be valued at $800 or less and sent by or to a single individual or entity. The goods must not violate any import restrictions or require special permits.Eligible shipments must have correct documentation and accurate value declarations. The importer cannot split shipments to remain under the $800 threshold deliberately. Additionally, the clearance process requires compliance with U.S. Customs and Border Protection (CBP) regulations, including proper labeling and manifest information.

Exemptions and Value Limits

The program excludes shipments subject to specific regulatory controls, such as certain agricultural products or restricted chemicals. Shipments requiring Partner Government Agency (PGA) oversight usually do not qualify for Section 321 benefits.The $800 value limit applies to the fair retail price in the country of shipment. Shipments exceeding this amount must undergo a formal customs entry with applicable duties and taxes. The limit resets daily, allowing individuals or entities to import multiple qualifying shipments within 24 hours without fees.

Compliance and Best Practices for Section 321 Entry

Section 321 entry allows eligible shipments valued at $800 or less to enter the U.S. duty-free with simplified customs requirements. Importers must follow specific documentation rules, avoid common errors, and understand recent procedural changes to maintain compliance and optimize shipments.

Required Documentation

Section 321 shipments require clear, accurate documentation to expedite customs clearance. Essential documents include a commercial invoice or receipt detailing the description, value, and quantity of goods.Importers must also provide evidence that the shipment qualifies under the $800 de minimis threshold. Advanced electronic data submission through the Automated Commercial Environment (ACE) system enhances compliance monitoring.Accurate product classification and declared values are critical. Any discrepancies may trigger shipment holds or require formal entry, increasing costs and delays.

Common Mistakes to Avoid

One frequent error is exceeding the $800 per person, per day value limit, triggering automatic withholding by CBP. Aggregating multiple shipments to a single recipient can violate this rule.Another mistake is incomplete or inaccurate documentation, which often leads to delays or additional inspections. Misclassification of goods or underreporting shipment values risk regulatory penalties.Ignoring updated ACE requirements and pilot programs for advance data submission can hinder smooth customs clearance. Importers should stay current on platform updates and filing protocols.

Impact on Importers and E-Commerce

Section 321 benefits low-value importers and e-commerce sellers by reducing customs duties and simplifying entry processes. It accelerates delivery times and lowers operational costs.However, tighter regulations on aggregated shipments and data requirements have increased compliance complexity. Importers relying heavily on Section 321 must implement rigorous tracking systems to avoid exceeding limits or triggering audits.As regulations evolve, e-commerce businesses must balance cost savings with compliance risks. Strategic inventory and shipment planning are essential to maintain eligibility.

Recent Updates to Section 321 Procedures

In August 2025, CBP enhanced ACE to automatically withhold shipments exceeding $800 per person per day across most transportation modes, excluding mail. This tightens enforcement of the de minimis threshold.The agency also closed certain loopholes, notably for inbound shipments from China, requiring some goods to shift to formal entry types with consolidated documentation.CBP's ongoing data pilot programs promote advance submission of e-commerce supply chain information, improving risk assessment but adding complexity to filing requirements.Importers should monitor Federal Register notices for proposed rule changes and adjust compliance practices accordingly.