Section 321 – Does Not Exceed $800 – Release 2

The exponential growth of e-commerce has resulted in more shipments than ever clearing, duty-free, under the section 321 de minimis exemption. For example, in 2024, more than one billion packages were cleared in this manner.

Using section 321 when it is not applicable allows importers to underpay customs duties and skirt reporting requirements in certain cases. CBP has implemented some new processes in order to effectively limit the risks of non-compliance for these shipments.

Phase 1 of this new process went live on July 25, 2024, and required an estimated date of arrival for all entry type 86 entries.

On January 11, 2025, CBP will deploy the second phase of the Section 321 enhancement to the Automated Commercial Environment (ACE). This release will make compliance easier for importers, brokers and carriers by providing timely alerts to help them avoid going over the $800 per person/per day limit.

• The threshold will be based on the estimated date of arrival (EDA) for entry type 86 (ET 86) submissions and de minimis shipments to be released off the manifest.
• A warning will be issued if a shipment’s value or the aggregated value of shipments to a consignee exceed the threshold.
• This will apply to all modes of transportation, excluding mail.
• The warnings are advisory only; no action is required but action is encouraged by recipients in response to a warning.
• The warnings will be sent through EDI messaging

Release 3, which will withhold release of shipments ineligible for de minimis clearance when the $800 per person/per day threshold has been exceeded will happen no sooner than February 11, 2025.

If you have any questions about these changes, customs duties in general, or any other customs or trade regulations please contact Allyn International at sales@allynintl.com

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About Allyn International 

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance.  Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North America, Europe, and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China and Prague, Czech Republic. For more information, visit www.allynintl.com.