This page was created to answer questions to E-Commerce email inquiries to assist customers in having a better understanding of e-commerce processes and trade activities.
General Questions
Section 321 does not allow:
- Merchandise subject to antidumping and countervailing duties.
- Merchandise subject to quota.
- Merchandise subject to a tax imposed under the Internal Revenue Code that is collected by other agencies on imported goods (e.g. alcohol and tobacco products, etc.).
- Merchandise subject to fees not waived by another government agency.
Pursuant to the Customs Modernization Act, it is the responsibility of the importer to use “reasonable care” to “enter,” “classify” and “value” the goods and provide any other information necessary to enable CBP to properly assess duties, collect accurate statistics, and determine whether all other applicable legal requirements are met.
Yes.
Merchandise subject to a tax imposed under the Internal Revenue Code that is collected by other agencies on imported goods is not allowed to be entered under Section 321.
- Alcoholic beverages and cigars (including cheroots and cigarillos) and cigarettes containing tobacco, cigarette tubes, cigarette papers, smoking tobacco (including water pipe tobacco, pipe tobacco, and roll-your-own tobacco), snuff, or chewing tobacco are not allowed.
In the case of certain personal or household articles accompanying persons arriving in the United States, those may be imported under Section 321.
There is no limit on the number of Entry Type 86 entries a broker can file. However, the regulation does limit the use of Section 321 (including Entry Type 86) to shipments imported by “one person on one day” having an aggregate fair retail value in the country of shipment of $800 or less.
Shipments with an aggregate value up to $800 per day per person are allowed.
Examples:
- One person can import 4 shipments each valued at $200 in one day
- One person can import 1 shipment a day valued at $800 or less
Under Section 321, one person may import multiple shipments on one day so long as the aggregate fair market value of the shipments does not exceed $800. If any single shipment imported that day breaches the $800 ceiling, then none of the shipments imported that day may be entered under Section 321.
When a shipment exceeds the $800 threshold, none of the shipments imported on that day by a known ultimate consignee, often a purchaser, are eligible for entry under Section 321. The shipments must instead be entered as a Type 11 informal or Type 01 formal entry.
We note that, if a carrier is affecting entry for a de minimis shipment by clearing a shipment off the manifest, they are subject to the standard of reasonable care. 19 C.F.R. § 143.26(b).
Customs brokers must be duly designated to enter qualifying shipments through a valid power of attorney and must comply with all other applicable broker statutory and regulatory requirements. The broker can have a POA with the consignee on whose behalf the broker is affecting entry. Generally, this is the carrier or freight forwarder, not the final deliver-to party/consumer. This means that for purposes of an ET86, a broker may execute a POA with Consignee A (usually the nominal consignee/carrier), file as the IOR, and on the entry, name Consignee B (usually the ultimate consignee/consumer) to whom the $800 ceiling applies. This is because the carrier has the right to make entry for the shipment, but the consumer is the named “imported by one person on one day” party for purposes of 19 U.S.C. §1321(a)(2)/19 C.F.R. § 10.151. Note that the consumer also has the right to make entry but is rarely involved in/aware of the import transaction.
In the informal entry context, since the term “consignee” encompasses nominal consignees, their financial interest in the imported article/import transaction does not have to equate to that of an owner or purchaser. In this context, a POA with the online marketplace from which the product was purchased would also be acceptable to CBP.
Yes.
19 C.F.R. Part 128, Subpart C sets forth requirements and procedures for the clearance of imported merchandise carried by express consignment operators and carriers, including couriers, under special procedures.
De minimis shipments pose the same risks as all other commercial cargo.
Yes, a corporation may be considered the importing “person” for unsold merchandise up to an aggregate fair retail value of $800 per day. Please refer to CBP's Administrative Ruling Related to Domestic Warehouses and Fulfillment Centers One Pager.
A MID is not a required data element for de minimis shipments. However, the expansion of the Section 321 Data Pilot has included it as an optional element.
Yes, if they are identified on the bill of lading/manifest.
No, the exemption will not be granted in any case in which merchandise covered by a single order or contract is forwarded in separate lots to secure the benefit.
CBP monitors/reviews shipments the same regardless of value.
No, the Section 321 monetary threshold applies to one person per day regardless of the port of arrival.
Yes, ISF requirements for ocean freight remain the same for de minimis shipments.
U.S. Customs and Border Protection has a ministerial role in AD/CVD and enforces the instructions of the U.S. Commerce Department(Commerce). Commerce’s instructions specifically direct CBP to assess AD/CVD on all entries for consumption of subject merchandise, without any exceptions. The AD/CVD statutes specifically apply to “all entries, or withdrawals from warehouse, for consumption of merchandise subject to a [AD/CVD] order on or after the date of publication of such order”, without any mention of the de minimis exemption. See 19 USC 1671h (CVD); 19 USC 1673g (AD).In addition, CBP has the authority to deny Section 321 entry and require a formal entry for any goods claiming de minimis exemptions, regardless of the value of the goods, under 19 C.F.R. § 143.22.
CBP enforces the provisions of the UFLPA regardless of the value of the goods. Goods entered pursuant to Section 321 are thus not exempt from CBP’s enforcement procedures.
Chapter 98: All merchandise classifiable under a Chapter 98, HTSUS, subheading must also be classified under an appropriate Chapter 1-97, HTSUS, subheading. The filing of a type 86 entry accords eligible merchandise a duty exemption pursuant to 19 U.S.C.§ 1321(a)(2)(C), such that the duty-free provisions of Chapter 98 are not applicable. Consequently, merchandise classifiable under a Chapter 98, HTSUS, subheading may be accorded duty-free treatment under Chapter 98 utilizing a distinct and appropriate entry type. Merchandise claiming a duty exemption under 19 U.S.C.§ 1321(a)(2)(C) must report the Chapter 1-97, HTSUS, subheading on the type 86 entry instead.
Customer Returns: Filing a type 86 entry for customer returns is permitted. The aggregate fair retail value in the country of shipment for such merchandise is included within the $800 limit applicable to the consignee named on the type 86 entry. A company accepting returns cannot list the foreign sender as the consignee. The company receiving the return would be the consignee and thus must pay close attention to the aggregate threshold of $800 for the administrative exemption. Eligibility for entry under the ACE Entry Type 86 Test for such merchandise is subject to all other requirements specified in the test and CBP Regulations.
Entries of cotton that qualify for informal entry (including de minimis entries) are not subject to the cotton fee because, under 7 CFR 1205.510(b)(4), “Any entry of cotton that qualifies for informal entry according to regulations issued by the Customs Service will not be subject to the assessment.” Further, “cotton” is defined in 7 CFR 1205.500(q) to include both cotton and “products derived thereof.”
Entry Type 86
The Entry Type 86 Test allows for submission of de minimis entries subject to partner government agency (PGA) data requirements.
Entry Type 86 does not require an importation and entry bond.
Yes.
“Country of origin” is a required data element for Entry Type 86.
Yes, for purposes of this test customs brokers must be authorized to conduct customs business on behalf of the owner, purchaser, or consignee of eligible shipments through a valid power of attorney.
All manifest requirements remain the same.
The party who filed the data is responsible for correcting the data for purposes of Entry Type 86.
Entry Type 86 Test is a voluntary pilot program. More information can be found at 84 FR 40079.
Yes. A foreign seller/vendor may be a nominal consignee arranging for shipment, or they may be the owner of the imported merchandise if it arrives to the U.S. unsold.
As an owner, they can self-file. As a consignee, they need to get a broker to file on their behalf as the IOR.
ET86 shipments are transmitted in ACE the same as other entry types.
Over 450 filers are participating in the Entry Type 86 Test.
Any PGA data reporting requirements would be satisfied by the PGA Message Set and the filing of any supporting documentation via the Document Image System (DIS).
Under the Entry Type 86 Test, the owner, purchaser, or a licensed Customs broker is required to file the entry.
No, the exemption is not based on the filer code.
A shipment may not be admitted into an FTZ, in order to be broken down into smaller shipments, because the value of the shipment is assessed at the time of importation, not entry. Moreover, 19 U.S.C. § 1321 specifically prohibits a shipment from being broken down in an effort to obtain duty free treatment. Additionally, retail trade is prohibited from occurring within an FTZ.
Yes.
No, Entry Type 86 is a voluntary test. The release from manifest process will continue to be an option for filing entry on de minimis shipments.
Yes, Entry Type 86 will have an entry number.
Providing an IOR number is conditional for Entry Type 86, subject to applicable Partner Government Agency (PGA) requirements.
Yes, for purposes of this test customs brokers must be authorized to conduct customs business on behalf of the owner, purchaser, or consignee of eligible shipments through a valid power of attorney.
Yes, filing an Entry Type 86 is considered customs business due to the classification of the merchandise within a shipment at the 10-digit level of the Harmonized Tariff Schedule if the United States.
No. Shipments qualifying for Entry Type 86 are not subject to duties, taxes and fees. If the shipment requires fee collection (e.g. agricultural fees), filers must file a Type 01 Consumption or Type 11 Informal entry.
To qualify for Entry Type 86, the goods must have an aggregate fair retail value of $800 or less in the country of shipment.
There is no bond requirement for Entry Type 86. However, if CBP determines a shipment does not qualify for de minimis treatment and requires formal entry, a bond will be required to file a Type 01 Consumption Entry.
Yes. Brokers filing an Entry Type 86 on behalf of others must possess the proper permit.
Section 321 Data Pilot
No, the MID is the manufacturer identification code used to identify the manufacturer of the merchandise. The seller may or may not be the manufacturer. The Marketplace Seller Account Number/Seller ID as requested by the Section 321 Data Pilot is a unique identifier a marketplace assigns to sellers.
The shipment security scan under the Section 321 Data Pilot allows air carriers to submit verification that a foreign security scan for the shipment has been completed (such as an x-ray image or other security screening report).
The Section 321 Data Pilot does not replace ISF or ACAS filings. All existing Trade Act of 2002 requirements and all manifest requirements continue to apply.
It is open to all modes of transportation.
Participating in the data pilot expansion will:
- Allow additional companies the opportunity to develop processes for gathering the data from various sources in the supply chain to transmit a single and complete filing.
- Assist CBP in identifying future trade facilitation benefits.
- Continue to explore different and new technology that becomes available and can be incorporated into future regulation.
The party that hired the broker would provide the information.
The following companies have been approved to participate in the Section 321 Data Pilot:
- eBay
- Amazon
- Zulily
- FedEx
- UPS
- DHL
- Box C Logistics
- XB Fulfillment
- SafePackage
- Baja Fulfillment
- Grand CHB Customs Broker
- Shein
- E-Freight Technology, Inc.
- Tacna
CBP is soliciting additional participants for the data pilot. Please see 88 FR 10140 for additional details.
De Minimis Warning Messages
The warning is an electronic message issued through Automated Commercial Environment (ACE) warning the manifest or entry type 86 (ET86) filer that a particular shipment may exceed the $800 aggregate value limit for merchandise imported by one person on one day and exempted from the payment of duty pursuant to the administrative exemption set forth in 19 U.S.C. § 1321(a)(2)(C) (the “de minimis duty exemption”), in the event that the merchandise in fact arrives on the estimated date. The warning is issued in advance of the actual arrival date of the shipment to facilitate selection of a different entry process and avoid the possibility of the shipment being ineligible for the exemption if it arrives on the estimated date. Alternatively, if a shipment is rerouted to arrive on a different date, it may be eligible for the de minimis duty exemption.
The final determination of eligibility for the de minimis duty exemption will be made upon the date of importation, which is the date of actual arrival. See 19 C.F.R. § 101.1. If a shipment is ineligible for the exemption, another appropriate entry type must be filed to secure release of the merchandise from U.S. Customs and Border Protection (CBP) custody. For example, a formal type 01, informal type 11 entry, or immediate transportation may be filed, and all associated requirements, including a bond as applicable, must be met for the selected entry process.
There will only be one warning message stating that the shipment “may” be ineligible. Please see CSMS # 63361789 - Section 321- Does not Exceed $800 Aggregated shipments (Warning) Release 2 Deployed in CERT December 11, 2024, for technical language that will be transmitted in ACE.
Which parties (e.g., shipper, importer, consignee, carrier, broker, postal operator) will CBP provide a warning message to?
If a party is filing a “release from manifest entry” is filed for clearance, the filer will receive the notification from CBP.
If an ET86 is filed, the entry and manifest filer will be notified.
In the event an owner or purchaser self-files, that party would receive notice if they have access to ACE.
How will CBP notify parties that do not have ACE access?
Messages will only be sent through ACE. Brokers will receive messages, if applicable, through the Automated Broker Interface (ABI) and carriers will receive messages through Automated Manifest System (AMS). Parties who do not have ACE access will not receive either an warning or ineligibility message. Guidance on how to obtain ACE access is available at: www.cbp.gov/trade/automated/getting-started/portal-applying.
For a particular shipment to qualify for the de minimis duty exemption authorized under 19 U.S.C. § 1321(a)(2)(C), the fair retail value in the country of shipment of the imported articles in such shipment cannot exceed $800 when aggregated with all other articles imported by the same “person” on the same day and exempted from the payment of duty pursuant to the de minimis exemption. For purposes of the Entry Type 86 Test, the consignee that is reported on the entry filing is the “person” who may qualify the shipment for the exemption. (See 89 Fed. Reg. 2630, 2633; Jan. 16, 2024). CBP has addressed this question in the Entry Type 86 Guidance (CBP Publication No. 3564-0224).
For “release from manifest” entries, the “person” who may qualify the shipment for the de minimis duty exemption authorized under 19 U.S.C. § 1321(a)(2)(C) may be the owner or purchaser of the merchandise in the shipment or the named consignee. Often, the “person” is the ultimate consignee taking final delivery of the shipment. CBP will look at either the owner or purchaser of the shipment to determine who is the “person.” However, if the owner or purchaser of the merchandise is not provided to CBP, then CBP will default to the consignee as the “person” who qualifies the shipment. See Headquarters Ruling (HQ) H290219 (July 28, 2020).
If a business with different locations is the owner or purchaser of the imported merchandise and is identified to CBP, the business would be considered the one person per day regardless of different locations. In situations where merchandise has not been sold to a U.S. consumer at the time of importation, and the consignee and ultimate consignee are distinct entities, then CBP will consider the ultimate consignee (such as the domestic warehouse or fulfillment center) to be the “one person” to whom the daily $800 aggregate value limit applies.
Please see response Question #3 above which explains how CBP will determine to whom the $800 daily limit applies for ET86 and release from manifest entries. If the person at a corporate entity to whom the shipment is sent “In the care of” or “To the attention of” is the owner, purchaser, or consignee of the imported merchandise, then such individual may be the “person” to qualify the shipment for the exemption provided the daily aggregate value is not exceeded for such individual.
The mode of transportation for an arriving shipment does not affect how CBP determines who qualifies the shipment for the administrative exemption under 19 U.S.C. § 1321(a)(2)(C).
CBP will enforce the $800 per day per person limit across all modes of transportation. Postal entries will not be affected by the ACE update for warnings.
The trade parties who will be notified will differ depending on the type of release requested, whether release from manifest serves as the entry or whether an Entry Type 86 is filed. For release from manifest entries, the party filing the bill of lading or manifest will receive the warning message. For ET86 entries, the party making entry will receive the message in addition to the party who filed the bill of lading associated with the entry.
ACE system time is 0000 to 2359 Eastern Standard Time (EST). The day is 24hours.
CBP Regulations define “date of importation” as follows: “in the case of merchandise imported otherwise than by vessel, the date on which the merchandise arrives within the Customs territory of the United States,” and “[i]n the case of merchandise imported by vessel, … the date on which the vessel arrives within the limits of a port in the United States with intent then and there to unlade such merchandise.” 19 C.F.R. § 101.1 (“Date of importation”).
Thus, for Shipment A to be imported by the same “one person” on the same “one day” as Shipment B for purposes of the de minimis duty exemption, the date on which the imported merchandise (which is owned or purchased by, or is ultimately consigned to, the same person or legal entity) in Shipments A and B arrives within the Customs territory or port limits (as applicable) must be the same (in EST, regardless of the time zone in which the port of arrival is situated).
The estimated date of arrival for a shipment, for purposes of a warning message, is provided to CBP as part of the manifest data. The date of actual arrival, for purposes of determining actual eligibility for the exemption, is recorded in ACE when a CBP employee manually arrives the conveyance and manifests the goods in ACE, or for vessel shipments, when the carrier or NVOCC arrives the conveyance and manifests the goods electronically to CBP.
The actual ineligibility notices are contemplated as part of a future deployment, the functionality in ACE will include the warning messages.
For both release from manifest and ET86 entries, the system of record is ACE regardless of the conveyance or mode of transportation for the arriving shipment. The specific action which triggers the warning message is:
- The filing of a bill of lading or manifest, for release from manifest entries. The deadline for such a filing varies by mode of transportation:
- Vessel. The filing must generally be received by CBP 24 hours before the cargo is laden aboard the vessel at the foreign port. 19 CFR 4.7(b)(2) and 4.7a(c)(4)(xv)(A).
- OR: “[n]o later than the presentation of the permit to unlade (CBP Form 3171, or electronic equivalent), for those vessels that will arrive less than 24 hours after sailing from the foreign port of lading).” 19 C.F.R. § 4.7a(c)(4)(xv)(B). Another deadline is specified in 19 C.F.R. § 4.7(b)(4).
- Air. The filing must be received by CBP either: (1) no later than the time of the departure of the aircraft for the United States, in the case of aircraft that depart for the United States from any foreign port or place in North America, including locations in Mexico, Central America, South America (from north of the Equator only), the Caribbean, and Bermuda; or (2) no later than four hours prior to the arrival of the aircraft in the United States, in the case of aircraft that depart for the United States from any foreign area other than those specified in 19 CFR 122.48a(b)(1). 19 CFR 122.48a(b)(1)-(2).
- Rail. The filing must be received by CBP no later than two hours prior to the cargo reaching the first port of arrival in the United States. 19 CFR 123.91(a).
- Truck. The filing must be received by CBP no later than either 30 minutes or one hour prior to the carrier's reaching the first port of arrival in the United States, or such lesser time as authorized, based upon the CBP-approved system employed to present the information. 19 CFR 123.92(a).
- Vessel. The filing must generally be received by CBP 24 hours before the cargo is laden aboard the vessel at the foreign port. 19 CFR 4.7(b)(2) and 4.7a(c)(4)(xv)(A).
- The filing of the entry, for ET86 entries.
For “release from manifest” entries, CBP will use the value provided pursuant to 19 C.F.R. § 143.23(k)(7) to determine eligibility for the de minimis duty exemption.
For ET86 entries, CBP will use the value submitted as part of the entry filing. 89 Fed. Reg. 2630, 2633 (Jan. 16, 2024). The warning message will be based on the aggregated total value of merchandise reported as potentially arriving on a certain day, with the same person identified as qualifying the shipments for the de minimis duty exemption, and functions to caution filers that the $800 daily limit may be exceeded if the shipment arrives on the reported day. However, eligibility for the exemption will only be established upon the actual arrival date.
If arriving on the same day, shipments’ values will be aggregated based on the identity of the person identified as qualifying the shipments for the de minimis duty exemption – that is, the owner, purchaser or consignee – in determining whether the $800 value limit is reached.
CBP will transmit the warning message to the party(ies) upon receiving the manifest or bill of lading filed for a release from manifest entry, or upon receipt of the entry filing for ET86 entries.
CBP will use any updates to the manifest or ET86 to transmit warning messages before arrival. CBP will use the most current data on all submissions for purposes of issuing the warning messages. Any updates to the manifest or entry should be submitted by regulatory timelines prior to arrival.
Yes, value can be corrected, even after an warning message has been issued and the manifest or ET86 has been filed. CBP does not make a determination as to whether a shipment is eligible for the de minimis duty exemption until the actual arrival of the merchandise.
A warning message is not a determination of noncompliance with an applicable statute or regulation, it is merely a warning that a shipment may be ineligible for the de minimis duty exemption.