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US Customs Proposes Significant Changes to the Section 321 Program
US Customs and Border Protection (CBP) recently published two Notices of Proposed Rule Making (NPRM) outlining changes the agency is considering to the Section 321 (‘de minimis’) program which allows imports valued under $800 to enter free of duties or taxes.
For more information on the NPRMs:
- Trade and National Security Actions and Low-Value Shipments (USCBP-2025-0003)
Proposed changes to the Section 321 Program
The two NPRMs propose significant changes to the Section 321 program including:
- Migration to a ‘Basic’ and ‘Enhanced’ Section 321 entry (cargo release) process. The basic Section 321 process would resemble the current manifest process with additional data elements required whether provided electronically or via paper. The enhanced process would more closely resemble the current ‘Type 86’ process relying on data transmission and featuring a larger data set.
- New data elements required under both the basic and enhanced cargo release processes, including the final US buyer, fair market value, item numbers or SKUs, 10-digit HTS numbers and product URLs.
- Waivers for 10-digit HTS number requirement may be available to those that demonstrate compliant product segmentation and separation.
- Data under the enhanced process to be provided in advance of arrival at the port of entry in alignment with Automated Manifest System (AMS) timelines. Failure to do so would result in manual cargo release processing and possible clearance delays.
- Products subject to special tariffs such as Section 201, 232 and 301 would be ineligible for import under the Section 321 program. Formal entry would be required with applicable duties or taxes to be paid.
- A Clearance Tracing Identification Number (CTIN) will serve as a unique identifier for shipments.
President Trumps’ America First Trade Policy Executive Order
Through the America First Trade Policy Executive Order, President Trump has concurrently mandated a full review of US trade relationships including “assessing the loss of tariff revenues and the risks from importing counterfeit products and contraband drugs, e.g., fentanyl, that each result from the current implementation of the $800 or less, duty-free de minimis exemption”.
How the Initiatives Can Impact US Importers
These initiatives may materially alter the Section 321 program and associated costs for US importers. Interested parties should review related materials carefully and may provide comments on the two NPRMs by March 17, 2025 and March 24, 2025 respectively through the Federal Register website.
For additional reference, please consult the following US Customs press releases:
- CBP Proposes New Rule to Strengthen Enforcement and Limit Duty Exemption for Low-Value Shipments
- CBP Issues Notice of Proposed Rulemaking to Enhance Enforcement as to Low-Value Shipments
Delmar can assist importers with immediate questions or clarifications based on available information.
For additional assistance, please contact your local Delmar Representative.