Is Section 321 De Minimis ($800) Still in Effect in 2026?

Short answer (May 2026): Yes — Section 321 de minimis is still in effect for most origins, allowing shipments under $800 to enter the US duty-free. No — for goods of Chinese or Hong Kong origin, the $800 exemption was removed in 2025 and remains removed in 2026. Section 321 entries from China-origin goods are now subject to MFN duty plus Section 301 plus IEEPA tariffs from the first dollar.

This post covers the current state of the rule, what changed, who it affects, and how to file shipments under the new regime.

What Section 321 actually says

Section 321 of the Tariff Act of 1930 (19 USC §1321) authorises CBP to admit "articles for which the aggregate fair retail value in the country of shipment does not exceed $800" without formal entry and without duty. The $800 threshold has been the law since 2016, when the Trade Facilitation and Trade Enforcement Act raised it from $200.

The statute itself was not changed in 2025. What changed is the executive interpretation — specifically, presidential proclamations and CBP guidance that exclude certain origins from eligibility.

What changed for China and Hong Kong

In February 2025, the Executive Order 14195 (later modified) ended de minimis treatment for goods of Chinese and Hong Kong origin. The exclusion took effect on May 2, 2025, after a brief implementation pause to allow CBP to update systems.

The practical effect: a $50 sweater from a Chinese seller no longer enters duty-free. It now requires either:

- A formal Type 11 informal entry (low value < $2,500) with full duty, Section 301, and any IEEPA tariffs collected; or - For shipments via Postal Service: a flat per-item duty (the rate has been adjusted multiple times — verify current CBP guidance before pricing).

For non-China origins (Vietnam, India, Mexico, EU, etc.), Section 321 continues to operate as before: $800 threshold, no formal entry, no duty.

Origins and rules at a glance

Section 321 eligibility now varies by country of origin. Use the table below as a 2026 reference; verify the current rule with CBP before shipping.

What this means for sellers

If you ship from China to the US in low-value parcels — typically Shein-style, Temu-style, or smaller direct-to-consumer Chinese brands — the economics have fundamentally changed. The previous model of "ship a $20 item duty-free" is gone for China origin.

Response strategies that have emerged:

1. Origin shift. Move final manufacturing or substantial transformation to Vietnam, Mexico, or another country with intact de minimis. Be careful: country of origin is determined by where the product is *substantially transformed*, not where it ships from. Simple repackaging in Vietnam doesn't change Chinese origin.

2. US warehouse pre-positioning. Ship in bulk from China under a formal entry (paying full duty + Section 301 once), then fulfil from a US 3PL. This can be cheaper per unit on volumes where duty per shipment was already material.

3. Section 321 Type 86 entries via licensed brokers. Even for non-China origins, the Type 86 entry process is being scrutinised more closely in 2026 — file accurately, with the correct HS code and origin.

4. Marketplaces handling de minimis at scale. Amazon, Walmart, and others have built workflows that file appropriate entries on behalf of sellers. For non-China-origin SKUs, this is straightforward.

What about the EU's €150 and the UK's £135?

These thresholds are unchanged in 2026 and apply to customs duty only. VAT applies in both jurisdictions from the first euro / penny — there is no VAT de minimis.

Separately, the EU has its €150 Customs Reform package (entry into force from 2028), which will abolish the €150 customs duty threshold entirely and require all imports to file customs declarations. That's not in effect yet — for 2026, the €150 customs threshold still operates.

How to verify the current status

Section 321 policy has been amended several times in the last 18 months. Before pricing a shipment, verify:

- CBP CSMS messages (cbp.gov/trade/automated/cargo-systems-messaging-service) — CBP publishes binding operational guidance here. - Federal Register notices — any change to de minimis treatment by executive order or proclamation appears in the Federal Register. - USTR Section 301 list updates — when origin treatment changes, USTR updates its tariff actions page. - Your customs broker — for any commercial shipment, ask the broker to confirm current treatment for your origin × HS combination before invoicing your customer DDP.

Bottom line

Section 321 de minimis is still in effect for the world *except* China and Hong Kong. If you ship from China to US consumers, treat every shipment as a formal entry with full duty stack from the first dollar. If you ship from anywhere else, the $800 threshold continues to make low-value direct-to-consumer shipping into the US the most frictionless of any major market — and a real competitive advantage versus selling into the EU or UK where VAT applies from the first euro.