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Before diving into the nuts and bolts of tariffs, you should grasp the fundamentals of Section 321—a provision within U.S. customs law that, until recently, allowed you to import goods valued at or under $800 duty-free.
This allowance is commonly called the U.S. De Minimis Value, a threshold introduced to streamline international trade and reduce administrative burdens for low-value shipments.
By keeping shipments below $800, you could typically avoid formal customs entries and extra fees, a strategy that e-commerce sellers around the world leveraged to provide fast, duty-free deliveries to American consumers.
However, as you’ll see below, recent executive orders and Trump Tariff Act regulation changes have redefined how this once-generous de minimis rule applies—especially if your imports are subject to specific tariff laws.
We hear you. This is a long article that details a range of complex tax, duty and government trade policy... but what's the "TLDL" (to long didn't read)? Well, you're in luck.
Check out this summary our experts have compiled on the major changes coming to the popular Section 321 rules when importing low value shipments into the United States from February 2025.
If you live in the US and ever shopped online, there's a good chance you've taken advantage of Section 321. In addition, you might be familiar with these other tariff categories from the news headlines, but here’s a specific breakdown of why they’re relevant in the context of understanding President Trump’s latest executive orders:
Understanding these three types of import tariffs is important. As they can dramatically shift your landed cost if you rely on low-value shipments to the United States under Section 321—especially now that you can’t skip customs duties under the $800 de minimis threshold for many of these goods.
Previously, you could often avoid paying Section 201, 232, or 301 tariffs if your individual shipment was under $800 and claimed the de minimis exemption. Certain shipments under Section 321 may require partner government agency oversight for compliance. For instance, a $750 solar component from China might have breezed into the U.S. duty-free, even though it was technically subject to high duties. But under the recent executive order:
This change closes a major “loophole” used by eCommerce giants like Temu or Shein, which have shipped millions of small-value packages directly to U.S. consumers. Reportedly, this figure was as high as 4-5 million Section 321 shipments per day. If your business followed a similar model, these new rules likely mean more duties, more paperwork, and a bigger compliance burden. Read on for the specific changes to Section 321 and how Easyship can help navigate a more uncertain future state for imports into the United States with our Chicago and Los Angeles 3PL fulfillment centers.
Now we'll take a closer look at exactly what's changing with Section 321(a)(2)(C) of the U.S. Tariff Act following the latest Trump Executive Orders:
You’ll find that any merchandise originating in countries or product lines subject to Section 201, 232, or 301 tariffs no longer benefits from the $800 de minimis rule.
For example, a $700 smartphone under Section 301 is now fully dutiable. This shift upends a significant advantage you might have used in your supply chain if you specialized in frequent, small-value imports.
Even if you aren’t shipping goods subject to special tariffs, you still have more paperwork. Every proposed de minimis shipment now demands 10-digit HTS codes, detailed country-of-origin data, and accurate descriptions. You can’t get by with vague item labels, because Customs wants to ensure no goods illegally evade the newly tightened rules. This crackdown has been increasing for some time.
According to government sources, Customs and Border Protection (CBP) is proposing a two-pronged approach to improve enforcement and ensure shipments valued are correct:
You’ll notice that even shipments under $800 can be forced into formal entry if Customs suspects misclassification or if goods come from restricted categories. That means you may face a $15–$50 filing fee and immediate duty payment, rather than skipping around it via de minimis. This represents a major shift in how swiftly your goods clear customs.
While elements of the executive order became effective February 4, 2025, the public comment period on the proposed rules ends in March 2025, with final measures likely taking hold by late 2025 or early 2026. You still have a little time to adapt, but the window is rapidly closing as parts of the new rules and Trump administration policies roll out.
You know your business inside out. Now, it’s vital for you to better understand U.S. import laws and Section 321 changes to know whether your industry is especially vulnerable to these changes:
No matter your niche, these changes mean your cost structure for sub-$800 shipments is no longer the same. You have to weigh compliance, duty, and potential shipping delays when determining how—and from where—you source goods.
Depending on how you run and structure your business entity, manufacturing and inventory sourcing, there are likely to be wide ranging impacts of the new trade policies.
On the more expensive side of the scale, you might have to hire additional compliance specialists or engage specialist tax and legal experts to manage the complexity of the evolving Section 321 landscape.
A more affordable alternative is to invest in a comprehensive multi-carrier shipping software, like Easyship's all-in-one shipping tool, to accurately classify goods properly under 10-digit HTS codes.
If you used daily small shipments to keep inventory fresh, you now risk higher fees and potential border delays. This can push you to either consolidate shipments or pass new costs onto customers, altering your entire market strategy.
If you’re based outside the U.S. and regularly ship to American consumers, the de minimis loophole was probably an essential strategy to your business model. Now, your sub-$800 shipments will likely face much greater scrutiny with difficulty in processing Entry Type 86. You may need to set up distribution centers within the United States, partner with a local warehouse or US fulfillment centre (like Easyship 3PL), or explore free trade agreements—otherwise, your competitiveness could erode quickly due to these new duties.
Luckily, Easyship prepped and ready to help with two large-scale US-based 3PL eCommerce fulfillment centers that can cost-effectively receive and distribute your packages throughout the United States.
Formal entry requirements are changing. Sign up to Easyship to stay up to date with the latest requirements and paperwork. Now, here's everything you need to know about the new procedure:
This process might let you breeze through if your items are well under $800 and aren’t subject to special tariffs. However, you still need to provide correct 10-digit HTS codes, accurate country of origin, and full descriptions. Think of it as “de minimis 2.0”—slightly more formal than before.
If your shipment hovers near $800, includes restricted materials, or hails from a country influenced by Section 201/232/301 measures, you’ll likely face an “enhanced” track. That can mean deeper data submissions, potential product URLs or SKUs, and a higher likelihood of inspection. Expect a longer clearance timeline and bigger administrative overhead.
You’ll see U.S. Customs leverage new powers to demand formal entries, penalize undervaluation, and clamp down on any shipment that appears to circumvent the new rules. Splitting a $2,000 order into multiple $500 parcels to dodge duties is now riskier than ever—steep fines or even import privilege suspensions can follow if you’re caught misclassifying goods. Be mindful of the aggregate fair retail value.
Now, we know what you're thinking. This is a massive, fundamental change to one of the most utilized and popular strategies for international eCommerce. One that has seen extreme growth as businesses like Temu and Shein have relied on this intellectual arbitrage. We're talking about a seismic shift that affects millions of parcels daily—and will likely result in higher retail prices for many of the retail items that American consumers demand. However, even with the new de minimis threshold restrictions, you can still optimize your import and shipping process:
By consolidating numerous smaller orders into a single shipment, you only go through one formal entry procedure. This lets you distribute domestically afterward, avoiding repeated clearance fees. It’s particularly effective if you rely on frequent shipments of goods that would otherwise each face tariffs. Easyship offers fulfillment centres in the United States that offer advanced pick and pack processes to help with bulk importing and redistribution, combined with the scale and strength of the cheapest US domestic shipping rates available including UPS, USPS, FedEx and more.
You can relocate parts of your supply chain to countries less impacted by 201/232/301 tariffs—like Vietnam for electronics or certain American manufacturing zones. If you previously relied on Chinese or Mexican sources for steel parts or consumer electronics, shifting production or final assembly might keep more of your margin intact.
Check if your products qualify for preferential treatment under deals like USMCA. For instance, if you can prove sufficient North American content for auto parts, you might circumvent new tariffs. Just be prepared for detailed rules-of-origin checks.
Storing inventory in a bonded facility or FTZ allows you to defer duty until goods actually enter U.S. commerce. If your business sells globally, you might even export from the warehouse without paying U.S. duties. This can be a massive advantage if your items are subject to steep Section 301 or 232 rates.
Sometimes altering materials or adjusting the manufacturing process changes the HTS code—and potentially lowers or eliminates special tariffs. For example, switching from certain cotton to synthetic blends can shift you out of a high-tariff category, assuming you confirm compliance with relevant customs regulations (and your customers are happy with the change in materials).
In addition to the five broad strategies above, you need to consider how each approach holds up under combined tariff pressure. Additional points to consider as you develop your policy response plan are:
By blending these methods, you can reduce the cumulative effect of losing the de minimis exemption plus paying new or higher tariffs with the entry type 86 test.
Given the significance of these changes, you likely want to track ongoing policy debates and potential revisions to these rules. Join Easyship's newsletter for the latest eCommerce updates. Plus, consider:
Staying up to date on these developments ensures you can pivot quickly, whether by changing suppliers or adopting fresh compliance strategies.
The Future Of Shipping In A Post-Section 321 Era
So, you’re facing a major overhaul in how de minimis shipments operate. If you’ve relied on the $800 threshold to avoid duties on goods subject to Section 201, 232, or 301 tariffs, you now have to recalibrate your approach. As an overview of how to manage these Section 321 changes:
By understanding how Section 201, 232, and 301 tariffs intersect with the new Section 321 de minimis changes, you can adjust your global eCommerce or supply chain model to minimize risk and maintain profitability.
Whether you invest in a 3PL like Easyship, shift production, or redesign your product lines, staying proactive is the key to success in this rapidly changing trade environment.
Easyship was built to simplify shipping for eCommerce sellers of every size. If you’re looking for ways to save on shipping costs, compare rates, automate fulfillment, or grow internationally—our free shipping tools and smart dashboard can save you hours daily.
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Many of the new de minimis constraints start on February 4, 2025, though full implementation of the proposed rules likely occurs late 2025 or early 2026, following the close of public comment periods. Be ready to manage your operations to avoid unacceptable compliance risks.
No. If your goods are covered by Section 201, 232, or 301 tariffs, you’ll still pay those specific rates even if the shipment is under $800. eCommerce businesses must consider their supply chain and legal setup while monitoring all tax imposed to ensure their ongoing profitability.
You must classify every item precisely, identifying the correct code. Inaccurate classification could trigger penalties, slowed shipments, or audits by Customs. Try Easyship's free tax and duty HTS lookup tool to easily manage HS codes for all your shipments.
Customs may place your shipment into a basic or enhanced process. Enhanced compliance requires deeper product data and is likely if you’re near $800 or shipping from a tariffed country. Create the necessary business records and entry summary to effectively navigate these new US import regulations.
Potentially, expect more specific announcements and updates, but any goods subject to Section 232 or other special duties won’t be exempt. USMCA may help if you prove North American origin, but the new rules still demand formal entries in many cases. Getting shipments across the US Border just became harder.
Yes, in many situations bulk imports into the US via a 3PL is now cheaper. You can consolidate duties into one formal entry and distribute them domestically via Easyship's multi-carrier shipping software and 3PL fullfiment network. It’s often better than paying multiple small entry fees and dealing with repeated customs scrutiny, plus get instant access to the best-available shipping rates across USPS, UPS, FedEx, Sendle and many more.
As with all tax avoidance or minimization strategies, simply don’t do it. CBP can impose steep fines—sometimes exceeding the avoided duties—and might suspend your import privileges. Correct classification is vital under these stricter rules and increased tariffs. A designated customs broker might help you successfully declare, value and define raw materials for clear Section 321 classification under the new updates.
If you’ve been taking advantage of Section 321 to clear low value shipments under the de minimis exemption, you might already be familiar with Entry Type 86. This specialized informal entry type was introduced by U.S. Customs and Border Protection to facilitate duty-free entries of qualifying goods valued at or below $800. Entry Type 86 allows you to file simplified electronic documentation via the Automated Commercial Environment (ACE) for eligible de minimis shipments. This often eliminates the need for a formal entry process, saving you time and reducing costs.
The Automated Commercial Environment (ACE) is a critical component of the US Customs and Border Protection’s (CBP) efforts to modernize and streamline the customs process. Section 321 is an integral part of ACE, enabling businesses to electronically file their customs declarations and clear their goods through customs more efficiently. ACE serves as the primary system through which the trade community reports imports and exports, and the government determines admissibility. By integrating Section 321 into ACE, CBP has made it easier for businesses to take advantage of the de minimis exemption for low-value shipments. This integration allows for the automated processing of customs entries, reducing the time and effort required to clear goods through customs.
A Harmonized Tariff Schedule (HTS) code, sometimes referred to as an HS code or HST code, is a numerical classification system that customs authorities use to identify and categorize imported goods. This code determines the duty rate and any applicable import regulations. It’s based on an internationally recognized framework—the Harmonized System—developed by the World Customs Organization, ensuring uniform product descriptions across different countries. Obviously, this system is designed to target high risk shipments.
IMPORTANT: The information provided in this blog is for educational purposes only and does not constitute legal, tax, or financial advice. Laws differ by jurisdiction and change regularly. You should not rely on this content as your sole source of information. If you have specific concerns, please consult a qualified professional.
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