Section 321 De Minimis Eliminated — What FBA Sellers Need to Do Now
The $800 de minimis exemption that let small shipments enter the US duty-free is ending. If you ship from China or SEA to Amazon FBA, your landed cost model is about to break. Here is exactly what changes and what to do before it hits.
What Section 321 was
Section 321 of the Tariff Act of 1930 allowed shipments valued at $800 or less to enter the US without formal entry, no duties, no CBP filing fees, and no ISF requirement. For FBA sellers shipping lightweight, low-value inventory, this was the backbone of the small-parcel model.
What changed
The new trade enforcement package eliminates the de minimis exemption for shipments originating from China and several other non-market economies. The threshold drops to $0 for formal entry requirements. That means every shipment — regardless of value — now requires:
- Formal CBP entry (Type 01 or similar)
- HTS classification and duty payment
- ISF filing for ocean freight (24h before lading)
- Bond coverage
- FDA/USDA prior notices if applicable
What this costs you
Duty rates vary by HTS chapter, but most consumer goods from China carry a base rate of 3–10%. Add Merchandise Processing Fee (0.3464%, min $31.67, max $614.35) and Harbor Maintenance Fee (0.125%). A $500 shipment that cost $0 in government fees now costs $20–60+ in duties and fees. At scale, this erodes margin fast.
3 things to do this week
1. Reclassify your catalog. Run every SKU through the ClearanceIQ HTS Lookup. Do not use the supplier’s code. AD/CVD flags on electronics, textiles, and certain machinery can double or triple duty.
2. Model new landed costs. Use the Duty Calculator with your updated HTS codes. If the new duty + fee total exceeds 15% of product value, revisit sourcing or pricing.
3. File ISF on every ocean shipment. Even split shipments. Even LCL. If you were relying on Section 321 to skip ISF, that exemption is gone.
The broker question
You still need a licensed customs broker for formal entry. The change is not that brokers become optional — it is that you can no longer bypass formal entry entirely. If you were self-clearing under Section 321, that path is closed.
Get the playbook that prevents these mistakes
Step-by-step templates, HTS worksheets, and entry checklists used to pass CBP cleanly the first time.