With Section 321 suspended since August 29, 2025, shipments valued at $800 or less no longer clear U.S. customs duty-free, and two Customs and Border Protection (CBP) interim final rules published June 24, 2026 made that suspension indefinite.
Section 321 of the U.S. Tariff Act has long provided shippers with a significant cost-saving opportunity, allowing low-value shipments (valued under $800) to enter the U.S. duty-free. This exemption has been widely used by e-commerce businesses, cross-border retailers, and logistics providers to streamline imports and reduce costs.
The President signed Executive Order 14324 on July 30, 2025, and de minimis treatment ended for shipments from all countries on August 29, 2025. For background on how the exemption worked, read ODW's guide to Section 321. This guide will help businesses understand the impact of the Section 321 suspension, what it means for supply chains, and how to navigate the changes effectively.
The suspension began by executive order in 2025 and was written into CBP regulation in June and July 2026. The table lists each step.
|
Date |
Event |
What it means |
|---|---|---|
|
July 30, 2025 |
Executive Order 14324 signed |
The President orders the suspension of de minimis treatment. |
|
August 29, 2025 |
Suspension takes effect |
Duty-free treatment under Section 321 ends for shipments from all countries. |
|
February 20, 2026 |
Executive Order 14388 signed |
The suspension continues, including for international mail, and CBP keeps collecting applicable duties. |
|
June 24, 2026 |
Interim final rules published; the non-postal rule and the mail suspension take effect |
Shipments valued at $800 or less that arrive by any mode other than mail must use formal or informal entry. |
|
July 24, 2026 |
Rest of the international mail rule takes effect |
A new postal informal entry process applies to merchandise valued at $2,500 or less. |
|
October 14, 2026 |
CBP extends a mail compliance date |
The date for certain mail to meet formal entry requirements moves from October 22, 2026 to January 20, 2027. |
|
July 1, 2027 |
Scheduled end of the statutory exemption |
Legislation terminates the exemption on that date. |
Several factors led to this decision, including:
The rules require duty-paying entries for low-value shipments in place of Section 321. An interim final rule takes effect right away while CBP accepts public comment, and these two rules set separate paths for freight and mail.
The non-postal rule comes first. Effective June 24, 2026, it suspends the exemption for every mode except the international postal network, so shipments valued at $800 or less must use formal or informal entry. Informal entry generally covers merchandise valued at $2,500 or less, and formal entry applies above that.
The mail rule comes second. It suspended the exemption for international mail on June 24, 2026, and its postal informal entry process for merchandise valued at $2,500 or less took effect on July 24, 2026. Some mail, including goods subject to partner government agency requirements or additional chapter 99 duties, will need formal entry once a delayed compliance date arrives, which CBP has extended to January 20, 2027.
Two narrow exemptions come third. The rules leave the exemptions for bona fide gifts and for personal or household articles that travelers carry unchanged, but they are rarely a planning option for commercial importers.
CBP has also proposed further changes to informal entry filing and bonds. Those proposals are not final, and ODW's De Minimis Changes in 2026 article tracks them.
The suspension of Section 321 has significant consequences for shippers, particularly those reliant on duty-free imports. Because the rules are indefinite, shippers should plan for these effects to continue.
Without Section 321, shipments valued under $800 are now subject to duties and tariffs, increasing the overall cost of doing business. Companies must factor in these additional expenses when pricing products and planning logistics. Informal entry still carries duty, so landed cost on formerly duty-free orders deserves a product-by-product review.
Shipments that previously moved swiftly under Section 321 now require formal or informal entry, leading to potential delays at ports of entry. Businesses must adjust fulfillment timelines to account for longer clearance times.
Shippers must now adhere to stricter regulatory requirements, including proper classification, valuation, and record-keeping. Failure to comply could result in penalties, shipment holds, or other disruptions.
To avoid costly penalties, businesses must ensure full compliance with updated customs regulations. Proper documentation, including invoices, HS codes, and country-of-origin details, will be critical to smooth operations.
With duties now applied to shipments that once qualified for Section 321, businesses need strategies to minimize cost increases, including:
Cross-border e-commerce and supply chain management will become more complex. Companies must rethink inventory distribution, order fulfillment processes, and warehouse locations to adapt to the new rules.
Partnering with an experienced logistics provider like ODW Logistics can help businesses navigate the new regulatory landscape and optimize supply chain operations.
ODW employs specialized software to analyze and determine the most efficient distribution nodes for brands. This analysis considers factors such as import origins, domestic manufacturing sites, and product category specifics. Our team utilizes this software to model optimal locations, incorporating critical customer constraints like delivery speed, service level agreements, and unique product requirements. Learn more about ODW's custom supply chain design services.
ODW offers expert guidance on customs regulations, ensuring all documentation is accurate and shipments remain compliant to avoid costly delays. To see what a 3PL's trade compliance team should handle, read ODW's guide to import compliance consulting after Section 321.
Our team helps businesses find cost-effective shipping solutions, including:
With a nationwide network of distribution centers, ODW Logistics helps businesses restructure fulfillment strategies to maintain efficiency. Nearshoring options and diversified supply chain strategies can also mitigate risks associated with the policy change. Brands that ship individual orders can review ODW's e-commerce fulfillment services.
ODW uses advanced Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) to provide real-time tracking, cost-saving insights, and greater operational efficiency for shippers adjusting to the new import landscape.
To minimize disruption and maintain efficiency, businesses should take immediate action:
No. The $800 duty-free exemption is suspended for every mode, including international mail, and CBP's interim final rules make the suspension indefinite. Only the separate exemptions for bona fide gifts and travelers' personal or household articles remain. ODW Logistics helps shippers plan distribution, duty, and compliance around the change.
The executive order was signed on July 30, 2025, and the suspension took effect on August 29, 2025. CBP's interim final rule for non-postal shipments took effect on June 24, 2026. Its mail rule took effect in two steps, with the suspension on June 24, 2026 and the postal informal entry process on July 24, 2026.
Most shipments now use informal entry when valued at $2,500 or less, and formal entry above that. Both owe duty. The owner, the purchaser, or a licensed customs broker typically files the entry, and ODW Logistics supports shippers with compliance guidance and distribution planning around it.
Not formally, but it is indefinite. CBP's rules set no end date, and legislation is scheduled to terminate the statutory exemption on July 1, 2027. Shippers should plan for duty-paid entry as the baseline and watch for further CBP rulemaking.
With Section 321 suspended indefinitely, planning around duty and entry costs is now part of normal operations. Navigating the suspension of Section 321 requires strategic planning and expert support. ODW Logistics provides customized solutions to help shippers optimize costs, streamline operations, and maintain compliance.
Contact ODW Logistics for a consultation, or request a quote, to learn how we can help your business adapt to the new import regulations.