Section 321 Customs Entry of the Tariff Act of 1930 allows certain shipments valued at $800 or less to enter the United States without incurring duties or the usual import taxes. This de minimis exemption simplifies customs clearance for low-value goods, making it a key provision for e-commerce sellers and small importers. It helps streamline the flow of small parcels by reducing paperwork and fees.U.S. Customs and Border Protection (CBP) manages Section 321 shipments through various programs, including automated systems designed to improve processing efficiency. However, recent updates have added more controls, such as withholding release if the $800 threshold is exceeded on aggregated shipments per person per day.Understanding how Section 321 works and the related entry types, like Entry Type 86, is critical for businesses aiming to comply with customs regulations while benefiting from this provision. This knowledge helps avoid delays and penalties in the import process.

Understanding Section 321 Customs Entry

Section 321 allows low-value shipments to enter the U.S. without paying duties or taxes. It streamlines customs processes, reduces paperwork, and speeds up clearance for qualifying packages.

Definition and Purpose of Section 321

Section 321 is a U.S. customs provision that permits duty-free entry of shipments valued at $800 or less. It is intended to simplify import procedures for low-value goods, primarily benefiting e-commerce and small parcel shipments.This rule eliminates the need for formal customs entry and reduces administrative costs. Section 321 also helps facilitate faster delivery times by minimizing customs delays. It is part of the Tariff Act of 1930 and supports increased trade efficiency.

Eligibility Criteria for Section 321 Sec

To qualify under Section 321, shipments must meet specific conditions: the total value cannot exceed $800 per day per importer. Only goods intended for personal use or resale are eligible.Certain items subject to restrictions or oversight by Partner Government Agencies (PGAs) may not qualify. Additionally, Section 321 applies only to shipments imported into the U.S. and is usually limited to non-commercial samples or small retail orders.

Application Process and Required Documentation

Importers or their customs brokers file the Section 321 claim during entry. Documentation typically includes the commercial invoice and shipment details verifying the total value.A formal customs entry is not required unless the shipment involves restricted products or exceeds the value limit. Importers must maintain accurate records to support claims and provide information for any audits or compliance checks.

Compliance, Limitations, and Best Practices

Section 321 allows duty-free import of low-value shipments, but strict rules regulate its use. Understanding daily limits, adherence to customs rules, and common pitfalls can help businesses optimize their operations and avoid penalties.

Daily Value Limits and Restrictions

The maximum value for a Section 321 shipment is $800 USD per person, per day. Shipments exceeding this threshold are subject to duties and taxes. Only one Section 321 shipment is allowed per recipient per day.Section 321 shipments must be for personal use only and not intended for resale. Items restricted or controlled by Partner Government Agencies (PGAs) such as FDA or USDA are not eligible under Section 321.These limits prevent misuse and maintain the program’s intent of facilitating low-value goods. Retailers must monitor shipment values and frequency to remain compliant.

Compliance with U.S. Customs Regulations

Compliance requires accurate declaration of item value and description. Using the Automated Commercial Environment (ACE) and participating in the Section 321 Data Pilot can improve data accuracy and speed customs clearance.All shipments must meet entry requirements, including proper documentation, correct tariff classification, and no prohibited goods. Businesses should consult customs guidelines regularly to stay updated on regulatory changes.Failure to comply can lead to shipment delays, penalties, or denial of entry. Consistent training and use of technology help ensure compliance and smooth customs processing.

Common Mistakes in Section 321 Customs Entry

A frequent error is exceeding the $800 daily threshold either in combined shipments or through multiple shipments to the same address. This triggers duties that may disrupt fulfillment.Incorrectly classifying goods or undervaluing shipments to bypass fees is another common violation. Customs audits often discover these, resulting in fines and increased scrutiny.Ignoring PGA restrictions or shipping prohibited items can also cause shipments to be returned or destroyed.To avoid mistakes, businesses should maintain clear records, verify shipment details, and train staff on Section 321 requirements. Automated systems can flag potential compliance risks before shipping.