US Customs $800 Duty-Free Rule (Section 321) FAQ
1. What is the $800 Duty-Free Limit (Section 321)?
Section 321 is a US Customs statute that allows for the duty-free entry of shipments valued at $800 or less. These are known as "De Minimis" shipments. If your package from China to the US has a total declared value under this threshold, it typically enters without paying import duties or taxes.
2. How is the value calculated?
The value is based on the Fair Market Value of the goods in the country of export (China). It does not include shipping costs or insurance, provided they are itemized separately on the commercial invoice.
3. What are the core requirements?
To qualify for Section 321, the shipment must:
- Be imported by one person on one day.
- Have a total fair market value of $800 or less.
- Not be part of several lots covered by a single order or contract (no splitting shipments to bypass limits).
4. Are there any exceptions or exclusions?
Yes. You cannot use the $800 exemption for:
- Goods subject to Anti-Dumping (ADD) or Countervailing Duties (CVD).
- Alcoholic beverages, perfumes containing alcohol, or cigars/cigarettes.
- Products regulated by agencies like the FDA, USDA, or FSIS (e.g., certain foods, drugs, or medical devices).
5. Does this apply to B2B or B2C?
It primarily benefits B2C e-commerce (direct to consumer). While businesses can technically use it, US Customs monitors for "patterns of import" to ensure companies aren't systematically splitting large commercial shipments into small $800 packages to evade taxes.
Note: Proper documentation and an accurate Commercial Invoice are essential for smooth clearance.