De Minimis Threshold Under Review: Potential Changes to Section 321
Congress is reviewing potential changes to the $800 de minimis threshold under Section 321, which could significantly impact e-commerce imports from China.
Background
The Section 321 de minimis provision currently allows goods valued at $800 or less to enter the US duty-free. This provision has been increasingly used for e-commerce shipments, particularly from Chinese platforms like Temu and Shein.
Proposed Changes
Several legislative proposals are under consideration:
- Reducing the threshold from $800 to $200 or lower
- Eliminating de minimis for countries not in trade agreements
- Requiring additional data collection for all Section 321 shipments
- Excluding Section 301 and Section 232 products from de minimis
Current Status
No legislation has been passed yet, but CBP has begun requiring additional data on Section 321 shipments including:
- 10-digit HTS classification
- Country of origin
- Seller information
Impact
If passed, changes could affect:
- Millions of daily e-commerce packages
- Consumer prices for low-value imports
- Customs processing volumes and costs