WHAT’S THE LATEST

There have been several significant regulatory changes affecting de minimis shipments under Section 321 of the Tariff Act of 1930. These developments will impact international ecommerce, including shipments using Entry Type 86.

WHAT WE KNOW

  1. FDA Filing Now Required for De Minimis Shipments: As outlined in CSMS #65581188, U.S. Customs and Border Protection (CBP) has rescinded prior exemptions for FDA-regulated products shipped under Section 321. Effective immediately:
    • All FDA-regulated goods, regardless of value or quantity, must be submitted for review.
    • Prior Notice (PN) requirements remain in effect for all food and feed shipments unless specifically exempt under 21 CFR 1.277(b).
    • This change applies across all transportation modes and reflects CBP’s enhanced enforcement posture for low-value imports. This change in policy has already been in place for shipments entering via Type 86. 
  2. New Civil Penalties for Improper Use of De Minimis: Under the recently enacted One Big Beautiful Bill Act, any person who enters or facilitates entry of goods using Section 321 in violation of other customs laws will face:
    • Up to $5,000 for a first violation.
    • Up to $10,000 for each subsequent violation.
    • These penalties take effect August 3, 2025, and apply in addition to any other enforcement actions. Violations which could incur a penalty include, but are not limited to, misclassification, failure to report partner government agency information, intellectual property rights violations, and undervaluation. 
  3. Full Elimination of De Minimis by July 1, 2027: The same legislation mandates the complete repeal of the de minimis exemption for all countries, effective July 1, 2027. After this date:
    • All shipments, regardless of value, will be subject to standard duty rates and customs procedures.
    • This change follows earlier restrictions on China and Hong Kong and will apply globally.

WHAT'S NEXT?

We strongly encourage importers to review their current use of Section 321 and begin preparing for both a heightened enforcement environment and a post-de minimis environment. 

Our team is available to assist with compliance strategies, risk/duty mitigation, and supply chain strategies. 

If you have questions, please reach out to your SEKO representative, or email us at hello@sekologistics.com.