Section 321 CBP refers to a regulation by the U.S. Customs and Border Protection agency that exempts certain low-value shipments from formal entry procedures. The section allows for expedited processing of goods that are imported into the United States and valued at less than $800. This regulation has been in effect since 2016 and has had a significant impact on the e-commerce industry.

Prior to the implementation of Section 321 CBP, all goods entering the United States were subject to formal entry procedures, regardless of their value. This process involved extensive documentation, fees, and time-consuming inspections, which often resulted in significant delays and added costs for importers. However, with the introduction of Section 321 CBP, low-value shipments can now be cleared through a simplified process, which has significantly reduced the time and cost associated with importing goods into the country.

The implementation of Section 321 CBP has been particularly beneficial for small businesses and e-commerce retailers, who rely heavily on low-value shipments to meet customer demand. By reducing the administrative burden and costs associated with importing goods, Section 321 CBP has helped to promote cross-border trade and support the growth of the e-commerce industry.

Overview of Section 321 CBP

Section 321 of the U.S. Code of Federal Regulations (CFR) allows for the duty-free entry of certain low-value shipments into the United States. The section is administered by the U.S. Customs and Border Protection (CBP), a federal agency responsible for regulating international trade and enforcing U.S. trade laws.

Eligibility Criteria

To be eligible for duty-free treatment under Section 321 CBP, the shipment must meet the following criteria:

• The shipment must be valued at $800 or less.
• The shipment must be imported by one person on one day.
• The shipment must not be intended for resale.

If a shipment meets these criteria, it may be eligible for duty-free treatment under Section 321 CBP. However, it is important to note that certain goods, such as tobacco products and alcoholic beverages, are not eligible for duty-free treatment under Section 321 CBP.

De Minimis Value

The $800 value threshold for Section 321 CBP is known as the de minimis value. This value is used to determine whether a shipment is eligible for duty-free treatment under Section 321 CBP.

The de minimis value is adjusted periodically to account for inflation and other factors. As of May 2024, the de minimis value for Section 321 CBP is $800.

In conclusion, Section 321 CBP provides a mechanism for the duty-free entry of low-value shipments into the United States. By meeting the eligibility criteria and de minimis value, importers can save on customs duties and taxes.

Procedures and Requirements

Filing Entries

Section 321 CBP requires importers to file an electronic manifest with the CBP for all goods that are eligible for the Section 321 de minimis exemption. The manifest must include the name and address of the importer, the consignee, and the manufacturer or supplier of the goods. In addition, it must provide a detailed description of the goods, their value, and the country of origin.

Documentation

Importers must provide the CBP with all necessary documentation, including commercial invoices, bills of lading, and packing lists. The documentation must accurately reflect the value and nature of the goods being imported, and must be presented in a timely manner.

Compliance and Enforcement

Importers must comply with all relevant laws and regulations, including those related to product safety and intellectual property rights. Failure to comply can result in penalties, fines, and even criminal prosecution. The CBP has the authority to enforce these regulations and can inspect shipments and seize goods that do not comply with the law.

Overall, importers should be aware of the procedures and requirements of Section 321 CBP to ensure compliance and avoid penalties. By filing accurate manifests, providing complete documentation, and adhering to all relevant regulations, importers can take advantage of the de minimis exemption and facilitate the smooth movement of goods across borders.