# Section 321 Explained: What Replaced It and What You File Now — Origova

> Section 321 was the legal mechanism behind duty-free $800 parcels. It is suspended. What entry type your shipments use now and what data each one needs.

Canonical: https://origova.com/section-321-explained

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# Section 321: what it was, what replaced it, and what you file now

_By [Spencer Flaherty](https://origova.com/about), founder of Origova_

If you shipped parcels into the United States before late 2025, your carrier paperwork probably said **Section 321** somewhere. It was the clearance type that let low-value shipments through duty-free with almost no paperwork, and for years it was so routine that most sellers never learned what it actually referred to. It is now suspended, and the entry types that replaced it demand data most catalogs do not have.

This page covers what Section 321 was in legal terms, why people used it interchangeably with "de minimis", and — the part that matters operationally — **which entry type your parcels use now and what each one requires**.

> **Where does your catalog stand?** — Every entry type below needs an HS code and country of origin on the product. Origova scans your whole catalog for what is missing — free, about two minutes. [Run the free scan →](https://apps.shopify.com/origova)

## Section 321 and de minimis are the same thing

"Section 321" refers to **Section 321 of the Tariff Act of 1930**, codified at [19 U.S.C. § 1321](https://www.law.cornell.edu/uscode/text/19/1321). That statute is what gave Customs and Border Protection the authority to admit shipments below a value threshold free of duty and formal entry. The threshold it authorised was the **$800 de minimis** figure.

So the two terms describe the same mechanism from different angles: _de minimis_ is the policy, _Section 321_ is the legal authority and the CBP clearance type built on it. Carriers and brokers said "321 shipment"; policy coverage said "de minimis". Same parcel.

## What the suspension actually changed

The change was not a rate increase. It was a **change of entry type**, and that is why it hit catalogs rather than just margins. Under 321, a parcel needed a description, a value, and a consignee. It did not need classification data, because nothing was being classified — no duty was owed. Once the exemption is suspended, every commercial parcel goes through a real entry process, and entry runs on classification.

|  | Under Section 321 | After suspension |
|---|---|---|
| Duty owed | None below $800 | From the first dollar |
| Entry type | Section 321 release | Informal or formal entry |
| HS code | Not required | **Required** |
| Country of origin | Loosely enforced | **Required** |
| Broker involvement | None | Often, and usually a fee |
| Data lives | On the shipment | **On your product records** |

That last row is the whole problem in one line. Section 321 needed information about the _shipment_, which your fulfilment process already had. The entry types that replaced it need information about the _product_, which lives in your catalog and which nobody had a reason to fill in before.

## The entry types you are using now

Which one applies depends mostly on value, and the boundary moves with commodity and origin. Treat these as the shape of the system rather than a rule you can apply without your broker.

| Entry type | Roughly when | What it means for you |
|---|---|---|
| **Informal entry** | Lower-value commercial shipments | Simplified paperwork, still needs HS code, origin and value. Most ecommerce parcels land here. |
| **Formal entry** | Higher value, or commodity-driven | Full entry summary, customs bond, broker almost always involved. |
| **Postal** | Via national post | Handled under a separate CBP rule from the non-postal one; mechanics differ by origin country and have changed repeatedly. |

The practical consequence is the same across all three: an HS code and a country of origin on every product, or the parcel stalls. Carriers now validate this at intake rather than absorbing the risk of a hold, so incomplete data increasingly stops a shipment _before_ it leaves — which is at least a faster failure than discovering it at the border.

## Is Section 321 coming back?

There is no visible mechanism for it. The suspension began by executive order in August 2025, survived the Supreme Court ruling against the tariff programme it originally travelled with, was made indefinite by CBP regulation in [an interim final rule in June 2026](https://www.federalregister.gov/documents/2026/06/24/2026-12670/indefinite-suspension-of-the-de-minimis-exemption-for-merchandise-arriving-through-all-modes-other), and is repealed by statute on **July 1, 2027** under 2025 legislation. Even a reversal of the executive action would leave the statutory repeal standing. [The full timeline and the per-parcel cost is here](https://origova.com/de-minimis-2026-changes).

## What to do about it

1. **Get a real count** of products missing an HS code or country of origin. Not an estimate — [three ways to find them](https://origova.com/find-products-missing-hs-codes-shopify).
2. **Classify the top sellers first.** A minority of SKUs is most of your parcels.
3. **Check code format,** not just presence. A malformed code fails the same way an empty one does — [why Shopify rejects codes](https://origova.com/harmonized-code-is-invalid).
4. **Decide DDP or DDU deliberately** now that duty is always owed. [Landed cost, explained](https://origova.com/landed-cost-for-shopify-sellers).
5. **Put a recurring check in place.** Every new product reopens the gap — [how drift happens](https://origova.com/shopify-hs-code-sync).

> **Not customs advice** — Entry types, thresholds and postal mechanics have moved repeatedly since 2025 and continue to. This page reflects the position as of August 2026. Your carrier or a licensed customs broker is the right source for how a specific shipment will be handled; for classifications start at [hts.usitc.gov](https://hts.usitc.gov).

## The short version

Section 321 was the statutory authority behind duty-free $800 parcels, and "Section 321" and "de minimis" named the same thing. Its suspension moved every commercial parcel into informal or formal entry, and entry requires classification data that lives on your products rather than your shipments. [Finding the gaps is the part Origova does](https://origova.com/index) — the scan is free and takes about two minutes.

## Frequently asked questions

### What is Section 321?

Section 321 of the Tariff Act of 1930, codified at 19 U.S.C. § 1321, is the statute that authorised US Customs to admit low-value shipments free of duty and formal entry. The threshold it supported was $800, and the clearance type built on it was commonly called a "321 shipment."

### Is Section 321 the same as de minimis?

Effectively yes. De minimis is the policy — the value threshold below which duty is waived. Section 321 is the legal authority and the CBP entry type built on it. Carriers said "321"; policy coverage said "de minimis". Both described the same parcel treatment.

### Is Section 321 still available in 2026?

No. It has been suspended for all countries of origin since August 29, 2025, made indefinite by CBP regulation in June 2026, and is repealed by statute on July 1, 2027. Commercial parcels now clear through informal or formal entry instead.

### What replaced Section 321 entry?

Informal entry for most lower-value commercial shipments and formal entry above that, with postal shipments handled under a separate rule. All of them require an HS code, a country of origin, a declared value and a usable product description.

### Do I need an HS code for a $20 parcel now?

Yes, if it is a commercial shipment crossing into the US. The value threshold that previously exempted it no longer applies, so the parcel goes through entry, and entry requires classification data regardless of how little the item cost.

### Does Section 321 still apply to personal shipments or gifts?

Bona fide gifts between individuals and personal effects have historically been treated separately from commercial shipments and some allowances remain, but the mechanics vary by mode and origin. If you are a merchant, assume commercial rules apply to everything you ship and confirm anything else with your carrier.

Primary sources: [19 U.S.C. § 1321 (Cornell Law, LII)](https://www.law.cornell.edu/uscode/text/19/1321) and CBP's [interim final rule (Federal Register, June 2026)](https://www.federalregister.gov/documents/2026/06/24/2026-12670/indefinite-suspension-of-the-de-minimis-exemption-for-merchandise-arriving-through-all-modes-other).

Related: [De minimis in 2026: what changed and what it costs](https://origova.com/de-minimis-2026-changes) · [What it means for Shopify sellers](https://origova.com/de-minimis-shopify-sellers) · [Prepare your store for the new rules](https://origova.com/prepare-shopify-store-us-customs-rules)