Section 321 De Minimis Is Dead: What US Import Rules Now Cost Your DTC Brand

Last updated: August 2026

The last several months have reshaped US import rules from the ground up. De minimis is gone. Tariff rates are shifting quarterly. Postal channels that used to move low-value goods duty-free are closed. Whether you’re an Ecommerce operator, a supply chain manager, or a finance lead trying to model the new landed cost reality, this is your guide to what actually changed and what it costs.

Let’s break it down step by step, so you can stay compliant, protect margin, and adapt before competitors do.

What is Section 321 de minimis and is it still active in the US?

Section 321 de minimis is no longer active in the US. The exemption, which previously allowed shipments under $800 to enter duty-free with simplified clearance under Type 86, ended for Chinese and Hong Kong-origin goods on May 2, 2025, and was eliminated for all countries on August 29, 2025 (CBP guidance). For background on how this unfolded, see our breakdown of the closing of de minimis for China. ה EU de minimis ending עוקב אחר אותו דפוס.

Every commercial shipment entering the US now pays applicable duties, regardless of value. There is no $800 threshold anymore.

What this costs a typical DTC brand: a $50 unit shipped from China that previously entered duty-free now carries the Section 301 base tariff plus any reciprocal rate. Depending on the HTS classification, that can add $7 to $25 per unit in duty alone, before processing fees. On 10,000 monthly orders, that’s $70,000 to $250,000 in new monthly duty exposure.

The brands absorbing this hit hardest are the ones still paying duties on full container loads weeks before the inventory sells. Brands shipping directly from manufacturers, and only paying duty on units that have already been ordered, defer that cost until revenue is in hand.

Current US tariff rates by country of origin

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Date;What changed

May 2, 2025;De minimis suspended for China and Hong Kong

August 29, 2025;De minimis suspended for all countries, Type 86 entry eliminated

February 20, 2026;US Supreme Court struck down IEEPA reciprocal tariffs

February 28, 2026;Flat per-item postal duty ended, ad valorem only

July 24, 2026;New 12.5% Section 301 forced-labor tariff on China took effect

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US tariff rates have shifted multiple times in 2025. As of the most recent updates, the following structure applies to commercial imports:

• China-origin goods: The IEEPA “reciprocal tariffs” (10%–145% during 2025) were struck down by the US Supreme Court on February 20, 2026 and are no longer collected. Current duties include the base MFN rate (typically 0%–6%), the existing 25% Section 301 tariff on most consumer goods, and a new 12.5% Section 301 forced-labor tariff effective July 24, 2026 (USTR forced-labor Section 301 action) — bringing the aggregate Section 301 rate to roughly 37.5% on typical Chinese consumer goods. Brands shipping from China may also face layered logistics costs like Chinese-built ship shipping fees.
• Vietnam-origin goods: reciprocal tariff structure separate from China rates; Vietnam has historically faced lower combined rates than China for most lightweight DTC categories
• Steel and aluminum: 25% Section 232 tariff applies regardless of country of origin (Federal Register Section 232)
• Canada and Mexico: USMCA-qualifying goods continue to receive preferential treatment; non-qualifying goods face IEEPA rates

⚠️ Tariff rates are changing on a quarterly basis. Confirm current rates with your customs broker before filing. For a per-SKU landed cost calculation, use the מחשבון עלות קרקעית.

The pattern that matters: rates differ by country of origin, and country of origin is determined by where substantial transformation occurred, not where the package shipped from. For brands manufacturing across both China and Vietnam, this creates a real lever.

The IEEPA “reciprocal tariffs” were struck down by the US Supreme Court on February 20, 2026 and are no longer collected. Current duties flow from Section 301 (China) and Section 232 (steel, aluminum, and other covered products), both of which remain in force.

How USPS and postal shipments are affected now that de minimis is gone

If you rely on USPS for international inbound shipments, here’s the current state of play:

• USPS continues to accept international items
• Postal shipments from China now face ad valorem duties only. The flat per-item duty option ($80–$200/item) ended February 28, 2026. Because the IEEPA reciprocal tariff rates were struck down, the exact applicable duty depends on HTS classification and the surviving Section 301/232 rates — confirm the current rate with your customs broker or CBP before shipping.
• The duty-free postal channel that once existed for low-value China-origin goods is closed

The layered cost stack hitting brands shipping from China now includes duties on every parcel, port and harbor fees, and emerging Chinese-built ship shipping fees. Postal is no longer a workaround.

These changes do not impact חסר יציאותמודל המשלוח של.

Key entry type definitions: Type 86, Type 11, and Type 01

אם אתם חדשים בעולם היבוא, הנה כמה מונחים שכדאי להוסיף למועדפים:

• Country of origin (COO): the country where the article was manufactured, produced, or grown
• “Chinese-origin products”: items with COO China and COO Hong Kong, excluding commercial or non-commercial media and informational materials (plus a few other exceptions)
• הקלד 86: an entry type previously used by CBP for simple, quick clearance of low-value Ecommerce goods. Eliminated following the end of Section 321 de minimis
• הקלד 11: informal entry, allows payment of duties and tariffs, with a value cap of up to $2,500 (depending on COO). See the CBP $2,500 informal entry limit update for current scope
• הקלד 01: formal entry, the most complex entry type, allowing payment of duties and tariffs with no limit on declared value

How did Type 86 customs clearance work?

Entry Type 86 was a voluntary CBP test program that let low-value e-commerce shipments clear US customs faster than formal entries. It was eliminated for China and Hong Kong on מאי 2, 2025, and for all other countries on אוגוסט .

CBP launched Entry Type 86 on ספטמבר 28, 2019. It allowed a licensed customs broker — acting for the owner or purchaser — to file an informal entry for Section 321 shipments (goods with an aggregate retail value up to $800 per person per day under 19 U.S.C. § 1321) electronically through the Automated Commercial Environment (ACE) via the Automated Broker Interface (ABI). The $800 threshold replaced a prior $200 limit after the Trade Facilitation and Trade Enforcement Act (TFTEA).

CBP said Type 86 “provides a less complex entry and release process” and “expedites clearance.” No customs bond was required, no entry summary (Form 7501) was needed, and the merchandise processing fee (MPF) and harbor maintenance tax (HMT) were waived. Each filing required 10 data elements, including a 10-digit HTSUS code; shipments with PGA-regulated goods also needed an importer-of-record number.

Before it ended, brands used Type 86 for duty-free, expedited clearance of low-value parcels under $800. It was never available for alcohol, tobacco, goods subject to antidumping or countervailing (AD/CVD) duties, quota-controlled merchandise, or goods imported by mail.

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;Type 86 at a glance

Program status;Voluntary CBP test — launched Sept 28, 2019, eliminated 2025

Value limit;$800 aggregate retail value per person per day (19 U.S.C. § 1321)

How it was filed;Informal entry in ACE via ABI, licensed broker as importer of record

Requirements waived;Customs bond, entry summary (Form 7501), MPF, HMT

Data required;10 elements, including a 10-digit HTSUS code

Excluded goods;Alcohol, tobacco, AD/CVD goods, quota goods, and mail

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What the end of Section 321 de minimis means for DTC margins and cash flow

Two structural costs hit your business at the same time when de minimis ended.

First, the duty cost itself. Every unit now pays. For a brand doing $5M in revenue at a $50 AOV with 15% blended duty exposure, that’s roughly $750K in new annual duty cost. If you’re absorbing it, margins compress. If you’re passing it to customers, conversion drops. The levers that matter now are country-of-origin sourcing and tariff engineering, structuring product classification and substantial transformation to legally reduce the applicable rate.

Second, the cash flow timing. Under the legacy 3PL model, you pay duties on the entire container the moment it lands — often 60 to 90 days before the inventory actually sells. That cash sits locked in unsold stock. Layer in rising ocean freight, Chinese-built ship shipping fees, and warehouse storage, and the working capital drag compounds.

Direct fulfillment from the point of manufacture inverts this. Inventory stays in bonded facilities in China or Vietnam. You pay duties per order, after the customer has paid you. The result: only paying tariffs on units you’ve already sold, no working capital trapped in containers, and no duty paid on inventory that never moves. For a deeper breakdown of the financial mechanics, see our analysis of tax deferment strategies.

This is the same playbook Shein and Temu have used to compound growth through every tariff change since 2018. The mechanism is available to any US DTC brand willing to move off the legacy hub-and-spoke model.

And this isn’t a US-only shift. The EU de minimis ending is on the same trajectory, which means brands selling cross-border need a fulfillment model that works under duty-on-every-parcel rules in multiple jurisdictions.

To model the impact on your own P&L, use the מחשבון החזר השקעה (ROI) למילוי ישיר.

The new cost of importing into the US

De minimis is gone, postal workarounds are closed, and every parcel now pays duty. The brands protecting margin are the ones that stopped paying tariffs on inventory months before it sells and started paying only on units that have already been ordered. If duty exposure, locked working capital, or container-scale cash flow timing is squeezing your P&L, it’s worth מדברים עם הצוות שלנו לגבי אילו שינויים ישתנו במילוי ישיר עבור מבנה העלויות הספציפי שלך.

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שאלות נפוצות

Is Section 321 and Type 86 still available for Chinese-origin goods?

No. The US ended Section 321 de minimis and Type 86 clearance for all Chinese and Hong Kong-origin goods on May 2, 2025. The full de minimis exemption was eliminated for all countries on August 29, 2025. All shipments now require formal (Type 01) or informal (Type 11) entry and pay applicable duties.

What replaced Type 86 for low-value imports from China?

Non-postal shipments from China now file under Type 11 (informal entry, up to $2,500) or Type 01 (formal entry, no value cap). Postal shipments fall under IEEPA tariff rules, assessed either ad valorem or via a flat per-item duty set by CBP.

Do US tariffs still apply if my product ships from Vietnam instead of China?

Yes, but at lower rates. Vietnam-origin goods face country-specific reciprocal tariffs separate from the Section 301 China rates. Country of origin is determined by where the product was substantially transformed, not where it ships from.

How can DTC brands reduce US tariff exposure after de minimis ended?

Brands reduce exposure through three levers: tariff deferment (pay only on units sold via direct fulfillment), tariff engineering (legally reclassify products under lower-duty HTS codes), and country-of-origin diversification through manufacturing in Vietnam or other lower-tariff jurisdictions.

What documentation do shipments from China now require for US customs?

Every shipment needs a commercial invoice, accurate HTS code, declared value, country of origin, and importer of record details. Filings go through ACE under Type 01 or Type 11. Postal shipments require additional manifest data under IEEPA.