If you’re involved in shipping products to the United States, you might have heard about “Section 321.” But what exactly is it? Why is it important? And how can you use it to your advantage?
This guide will break down everything you need to know about Section 321 in logistics, from the basics to practical tips for leveraging this regulation. Whether you’re a small business owner, a logistics manager, or simply curious about international shipping, this guide is your one-stop resource.
What is Section 321?
Section 321 is a U.S. Customs and Border Protection (CBP) regulation that allows for the duty-free importation of goods valued at $800 or less per day per person. In simple terms, if you’re shipping goods to the United States and the total value of the shipment is $800 or less, you can import them without paying duties or taxes under Section 321.
This rule is part of the U.S. Tariff Act of 1930, but it’s become especially important in the age of e-commerce, where small parcels are shipped directly to consumers from all over the world.
Why is Section 321 important?
Section 321 is a game-changer for businesses and consumers alike. Here’s why:
- Cost savings: No duties or taxes on qualifying shipments means lower costs for businesses and end customers.
- Simplified process: Fewer paperwork and customs requirements make importing easier and faster.
- Encourages e-commerce: Makes it easier for international sellers to reach U.S. customers.
- Supports small businesses: Levels the playing field for smaller sellers who ship lower-value items.
Understanding and using Section 321 can help you save money, speed up shipping, and grow your business in the U.S. market.
How does Section 321 work?
Let’s break down the process step by step.
1. Eligibility criteria
To qualify for Section 321, your shipment must:
- Have a total value of $800 or less (per shipment, per day, per recipient).
- Be imported by one person (individual or company) per day.
- Not be one of the restricted or prohibited items (such as certain tobacco, alcohol, or regulated goods).
- Not be part of a series of shipments meant to evade the law (splitting a large order into smaller ones to avoid duties is not allowed).
2. Shipping process
- Prepare your shipment: Make sure the total value is $800 or less.
- Label and document: Clearly label the shipment and provide accurate information about the contents and value.
- Choose a carrier: Most major carriers (FedEx, UPS, DHL, USPS) are familiar with Section 321 and can help you process your shipment.
- Customs clearance: When the shipment arrives in the U.S., the carrier will declare it under Section 321. If everything checks out, it clears customs without duties or taxes.
3. What happens if you exceed the limit?
If your shipment exceeds $800, it no longer qualifies for Section 321. You’ll need to pay duties and taxes, and the shipment may require additional paperwork and inspections.
Who can use Section 321?
Section 321 is available to:
- Individuals: Anyone shipping a personal package to the U.S. (gifts, personal purchases, etc.).
- Businesses: E-commerce sellers, manufacturers, and logistics providers shipping goods directly to U.S. customers.
It’s especially popular among:
- International e-commerce sellers (Amazon, eBay, Shopify, etc.)
- Third-party logistics providers (3PLs)
- Dropshippers
- Small and medium-sized businesses
What are the benefits of Section 321 for e-commerce and logistics?
Let’s explore the specific benefits in more detail.
Lower costs
By avoiding duties and taxes on shipments under $800, businesses can offer more competitive prices to U.S. customers. This is a huge advantage in the crowded e-commerce space.
Faster shipping
Section 321 shipments typically clear customs faster because they require less paperwork and fewer inspections. This means quicker delivery times, which customers love.
Simplified logistics
With fewer customs requirements, logistics providers can process and deliver Section 321 shipments more efficiently. This reduces the risk of delays and lost packages.
Market expansion
International sellers can reach U.S. customers more easily, opening up new markets and growth opportunities.
3 common misconceptions about Section 321
There are some myths and misunderstandings about Section 321. Let’s clear them up.
1. "I can split large shipments to avoid duties"
Nope! The law prohibits breaking up a single order into multiple smaller shipments to stay under the $800 limit. Customs can and will flag suspicious activity.
2. "Any product qualifies"
Not true. Some items are restricted or prohibited, such as certain food, alcohol, tobacco, and regulated goods. Always check the latest CBP guidelines.
3. "I don't need to provide accurate information"
Wrong! Accurate labeling and documentation are crucial. Falsifying information can lead to fines, penalties, and shipment seizures.
Section 321 vs. other import programs
You might wonder how Section 321 compares to other U.S. import programs. Here’s a quick overview:
Section 321 vs. De Minimis
- Section 321 is the U.S. implementation of the “de minimis” threshold for duty-free imports. The current de minimis value is $800.
- Some countries have different de minimis thresholds, so always check local regulations when shipping internationally.
Section 321 vs. formal entry
- Formal entry: Required for shipments over $800 or containing regulated goods. Involves more paperwork, duties, and taxes.
- Section 321: Simpler, faster, and cheaper for qualifying shipments.
Real-world example of Section 321
Imagine you run an online store based in China, selling electronics accessories to U.S. customers. Most of your products cost between $20 and $100.
- You receive an order from a customer in California for a phone case ($25) and a charging cable ($15).
- The total value is $40, well below the $800 limit.
- You package the items together, label them accurately, and ship via a carrier familiar with Section 321.
- The shipment arrives in the U.S., clears customs quickly, and is delivered to your customer without any duties or taxes.
Result: Your customer is happy with the fast, affordable shipping, and you avoid extra costs and paperwork.
Frequently asked questions about Section 321
Q1. Can I ship multiple Section 321 packages to the same person in one day?
A1. No. The $800 limit applies per person, per day. Multiple shipments to the same recipient on the same day will be combined for customs purposes.
Q2. What happens if my shipment is slightly over $800?
A2. If the value exceeds $800, even by a small amount, the entire shipment is subject to duties, taxes, and formal entry requirements.
Q3. Are there any restrictions on the type of goods I can ship under Section 321?
A3. Yes. Certain goods, such as alcohol, tobacco, and regulated items, are excluded. Check CBP guidelines for the latest information.
Q4. Can businesses outside the U.S. use Section 321?
A4. Absolutely! Many international sellers use Section 321 to ship directly to U.S. customers.
Q5. Do I need a customs broker for Section 321 shipments?
A5. Not usually. Most carriers handle Section 321 declarations automatically. However, for complex shipments, a broker can help.
In summary, Section 321 in logistics is a U.S. customs rule that lets you import shipments valued at $800 or less per day, per person into the United States duty-free and tax-free.
