Section 321 Entry: Understanding the Basics of De Minimis Importation

Section 321 entry refers to a type of informal entry that allows low-value shipments to enter the United States without having to go through the formal customs clearance process. This process was introduced to facilitate the movement of low-value shipments across borders, while also reducing the workload on customs officials. With the increasing popularity of e-commerce, Section 321 entry has become a popular choice for businesses and individuals looking to import goods into the United States.

To qualify for Section 321 entry, a shipment must have a value of $800 or less. This threshold is subject to change and can vary depending on the type of goods being imported. Additionally, the shipment must not be subject to any other government agency requirements, such as FDA regulations or USDA inspections. Shippers must also provide the necessary documentation, including a commercial invoice and packing list, to clear the shipment through customs.

While Section 321 entry can be a convenient and cost-effective option for low-value shipments, it is important to note that it is not without risk. Shippers must ensure that their shipments comply with all relevant regulations and that they are not importing prohibited or restricted goods. Failure to comply with these regulations can result in fines, penalties, and even seizure of the shipment.

Understanding Section 321 Entry

Definition and Purpose

Section 321 Entry is a provision under the US Customs and Border Protection (CBP) regulations that allows low-value shipments to enter the US duty-free and without any formal entry procedures. The purpose of this provision is to facilitate the movement of low-value shipments across the border, reduce the administrative burden on CBP, and expedite the clearance process for e-commerce shipments.

Eligibility Criteria

To be eligible for Section 321 Entry, the shipment must meet the following criteria:

• The shipment must have a fair retail value in the country of origin, not exceeding $800.
• The shipment must be imported by one person on one day.
• The shipment must not be intended for resale.

If the shipment meets these criteria, it can be cleared under Section 321 Entry, and the importer will not be required to pay any duties or taxes.

Customs Clearance Process

The customs clearance process for Section 321 Entry is relatively simple and straightforward. The importer or their authorized agent must submit an electronic manifest to CBP, which includes the details of the shipment, such as the description of the goods, the value, and the country of origin. CBP will then review the manifest and determine if the shipment is eligible for Section 321 Entry.

If the shipment is eligible, CBP will release the goods, and the importer can take possession of the shipment. If the shipment is not eligible, CBP will require the importer to file a formal entry and pay the applicable duties and taxes.

In conclusion, Section 321 Entry is a valuable provision for low-value shipments, which simplifies the customs clearance process and reduces the administrative burden on CBP. Importers who meet the eligibility criteria can take advantage of this provision to expedite the clearance process and avoid paying any duties or taxes.

Operational Aspects of Section 321

Documentation Requirements

To comply with Section 321 entry requirements, importers must provide certain documentation to US Customs and Border Protection (CBP). This documentation includes a commercial invoice, packing list, and an electronic manifest. The commercial invoice should include a detailed description of the goods, their value, and the country of origin. The packing list should include the number of packages, their weight, and dimensions. The electronic manifest should contain information about the carrier, the shipment, and the goods being transported.

Electronic Data Interchange Systems

To facilitate the submission of Section 321 documentation, importers can use Electronic Data Interchange (EDI) systems. EDI systems allow for the electronic exchange of information between importers and CBP. This can help reduce the time and cost associated with traditional paper-based documentation. EDI systems can also help improve the accuracy of data by reducing the risk of manual data entry errors.

Carrier Responsibilities

Carriers are responsible for ensuring that Section 321 shipments comply with CBP requirements. This includes verifying that the importer has provided all necessary documentation and that the goods meet all applicable regulations. Carriers must also provide CBP with the electronic manifest and any other required information. Failure to comply with these requirements can result in penalties and delays.

Overall, compliance with Section 321 entry requirements is essential for importers and carriers. By understanding the operational aspects of Section 321, importers and carriers can ensure that their shipments are processed smoothly and efficiently.