Section 321 is a provision in U.S. customs law that allows for the duty-free importation of goods into the United States, provided that the goods meet certain conditions. This provision is particularly relevant for e-commerce and cross-border trade between the U.S. and its neighbors, Mexico and Canada.
Value Limit: Goods with a value of up to $800 can be imported duty-free into the United States under Section 321. This limit is per day per person.
Eligible Items: Most goods are eligible for import under Section 321, but there are some exceptions, such as goods subject to other government agency requirements (e.g., food, alcohol, firearms).
E-commerce Application: Section 321 is widely used by e-commerce businesses, particularly for shipping low-value goods from Mexico or Canada to U.S. consumers. It allows businesses to avoid paying duties on a large volume of small shipments.
Customs Procedures: Importers using Section 321 must file an electronic manifest with U.S. Customs and Border Protection (CBP) and provide specific information about the shipment, including the value and description of goods.
Restrictions:
Recent Developments: As e-commerce has grown, Section 321 has become increasingly important, leading to discussions about its impact on U.S. domestic industries and potential changes to the law to address these concerns.
Mexico: Goods shipped from Mexico to the U.S. under Section 321 have become common due to the proximity and ease of shipping across the border. This is especially relevant for companies with fulfillment centers in Mexico.
Canada: Similar to Mexico, Canadian companies also utilize Section 321 for shipping goods into the U.S. The process is comparable, though the logistics may differ due to geographic and regulatory differences.
Section 321 facilitates cross-border trade and is a significant advantage for businesses that engage in low-value, high-volume shipments.