Section 321 (CBP Shipment Type)

🔖 This article is part of the Shipment Release Types Guide

⚠️ CBP has suspended duty-free de minimis treatment under Section 321 for covered low-value shipments (effective August 29, 2025). As a result, shipments generally cannot be released duty-free under Section 321, and Type 86 duty-free processing is no longer available for these shipments. See details below.

Selecting Section 321 shipment type from the Start New ACE Shipment page

A Section 321 shipment refers to the U.S. de minimis administrative exemption under section 321 of the Tariff Act of 1930 (19 U.S.C. § 1321(a)(2)(C)), which historically allowed certain low-value commercial shipments to be admitted without the usual formal entry requirements, subject to CBP conditions and enforcement discretion.

Previously, to qualify for de minimis treatment under Section 321, the shipment generally needed to be within the applicable value threshold and meet CBP eligibility rules, including restrictions related to aggregated shipments (for example, multiple shipments for one person on one day). CBP could also refuse de minimis treatment based on admissibility, enforcement, or risk considerations.

On February 24, 2016, the Trade Facilitation and Trade Enforcement Act (TFTEA) was signed into law and increased the Section 321 administrative exemption amount from $200 to $800, effective March 10, 2016.

On November 26, 2018, CBP began a phased approach for Section 321 non-compliance on ACE truck manifests. Starting January 1, 2019, carriers making no attempt to comply with the electronic manifest requirement for commercial truck shipments containing Section 321 merchandise could be subject to monetary penalties (stated by CBP as $5,000 for the first offense and $10,000 for subsequent offenses).

Suspension of Duty-Free De Minimis Treatment (Section 321)

On July 30, 2025, the White House published an Executive Order titled “Suspending Duty-Free De Minimis Treatment for All Countries.” This action directed the suspension of duty-free de minimis treatment under 19 U.S.C. § 1321(a)(2)(C) for covered low-value imports, with an effective date of August 29, 2025.

As a practical result of this suspension, low-value imports that previously would have been eligible for duty-free treatment under Section 321 must now generally be processed under entry methods that allow for assessment/collection of duties and fees, rather than using Section 321 duty-free de minimis processing (including duty-free Type 86 workflows).

For postal networks, there has been a transition period and process changes leading up to late February 2026, after which more complete item-level tariff classification and treatment reporting is expected in CBP processing flows (as reflected in postal operator implementation guidance and timelines).

Declaring a Section 321 Shipment in ACE Manifest

Before the Section 321 exemption was eliminated highway carriers entering the U.S. with Section 321 shipments were required to file an ACE eManifest for that truck.

Previously to report a Section 321 the carrier will need to create an ACE Shipment with the Shipment Type Section 321 and ensure that the shipment is transmitted on their ACE eManifest. The example below shows how to report Section 321 shipments using BorderConnect's ACE eManifest software. Although a Section 321 shipment is different from a PAPS shipment, the carrier will still need to provide a unique Shipment Control Number, as well as all other information normally required for an ACE Shipment including Shipper, Consignee and Commodity information. Additionally, the carrier will need to enter the Value and Country of Origin of the goods as part of the ACE Shipment.

As with all Informal Entries, no Customs Broker should be involved and the carrier will not receive an Entry Number for the shipment. At the border, the driver should be prepared to show paperwork for the shipment to the Customs Officer.

Using the CSV Shipment Upload Feature (Bulk Shipment Upload)

BorderConnect provides a simple way for users to upload information for large amounts of shipments per eManifest. To learn how to upload shipments visit the ACE Shipment CSV Upload Feature within the BorderConnect ACE Software User Guide.