de minimis

The End of De Minimis Section 321 Clearances

By Bruce Leeds, Senior Counsel, Braumiller Law Group

Quick Answer

The de minimis Section 321 clearance, which previously allowed imported shipments valued under $800 to enter the U.S. free of duty and entry requirements, has been permanently suspended. This change became effective on August 29, 2025, following an Executive Order issued on July 30, 2025, and subsequent Congressional action. The suspension was driven by the exponential growth in eCommerce, with small package shipments increasing from 134 million in 2015 to 1.36 billion by 2024, raising concerns about resource strain and the evasion of U.S. sanctions and regulations. Consequently, all packages entering the U.S. are now subject to entry requirements and duty payment, with a limited exception for bona fide gifts valued under $100.

Prior to August 29 of this year, 19 USC 321 – popularly known as a Section or de minimis clearance – allowed imported shipments valued at less than $800 to enter the US free of duty and entry requirements.  The idea behind this was (1) the cost of processing an entry and duty payment would be more than the duty collected, and (2) setting the threshold at this level would promote eCommerce.  It would also allow US Customs & Border Protection (CBP) to use its resources more effectively.  

That started out just fine but soon became a monster.  The boom in eCommerce and small package shippers took advantage of Section clearances under the $800 de minimis threshold.  In 2015 – the year the $800 de minimis limit went into effect – there were 134 million small package shipments.  By 2024 the number was 1.36 billion.  Further, small packages under $800 in value did not need to satisfy other US sanctions and requirements, such as other agency restrictions, dumping duties, quotas, forced labor restrictions and country of origin marking.  It was also suspected that some small packages contained dangerous goods, such as firearms and prohibited drugs.  It was time to do something.  

On July 30, 2025, the President issued an Executive Order suspending Section clearances.  The effective date was Aug. 29, 2025.  The Big Beautiful Bill passed by Congress made the suspension permanent.  This meant the minimis threshold became $0 and Section clearances would no longer take place.  

Thus, with no de minimis exception, all packages entering the US are now subject to entry requirements and duty payment.

There is an exception to this for bona fide gifts. Gifts having a value of less than $100 can enter without duty or entry requirements.  To best use this exception the packages should be clearly labeled “gift” in English.  There are severe penalties for persons fraudulently using this exception.

The effect of these changes on small package shipments was dramatic.  Some countries paused shipments to adjust to the new rules and give shippers an opportunity to decide whether or not to export to the US.  International postal traffic to the US decreased by 80%.  Small package shippers, such as FedEx, UPS and DHL put new mechanisms in place to handle the new requirements.

Small package shipments will now be subject to formal or informal entry and duty payment.  The duty payable will be the IEEPA (International Emergency Economic Powers Act) tariffs for the commodity and country of origin. For the first 6 months, shipments coming by international mail will take a duty of $80, $160 or $200 per item depending on the IEEPA tariff applicable to the item.  Alternatively, the postal shipment can just take the regular IEEPA tariff.  CBP is also designating certain parties to handle the clearance of postal shipments.

It is assumed that CBP will enforce other requirements for small package shipments under $800.  These would include country of origin marking, quotas, dumping duties, and forced labor restrictions.  Prohibited articles will be subject to seizure.  The Food & Drug Administration has stated that its requirements will apply to all imports regardless of value.  Other US Government agencies will need to decide if their requirements are to extend to all imports.  A safe assumption is that they will.

One of the original intentions of the de minimis rule was to allow CBP to use its resources in a productive way.  CBP should be concentrating its resources on collecting the duty and enforcing the regulatory requirements on large, valuable shipments.  Is CBP going to require an entry and collect duty on a $25 parcel?  That remains to be seen – we will see how it plays out.

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Frequently Asked Questions

1 What is the immediate impact of the elimination of Section 321 de minimis clearances on my company's imports?

As of August 29, 2025, the de minimis threshold for imported shipments into the US is $0. This means all packages, regardless of value, are now subject to full entry requirements and duty payment, impacting previous duty-free imports under $800.

2 Are there any exceptions to the new requirement for all imported packages to meet entry requirements and pay duty?

Yes, a specific exception exists for bona fide gifts valued at less than $100. To qualify, these packages must be clearly labeled "gift" in English, and fraudulent use of this exception carries severe penalties.

3 When did the changes to the Section 321 de minimis clearance policy officially take effect?

The suspension of Section 321 clearances was enacted via an Executive Order on July 30, 2025, with an effective date of August 29, 2025. This suspension was subsequently made permanent by Congress.

4 What were the main reasons behind the decision to eliminate the Section 321 de minimis clearance?

The policy was eliminated due to the exponential growth in small package shipments, which overwhelmed the system and raised concerns about non-compliance with US sanctions, forced labor restrictions, and the potential for dangerous goods to enter the country unchecked.