De Minimis (Section 321)

De minimis, authorized under Section 321 of the Tariff Act, historically let shipments valued at $800 or less enter the U.S. free of duty and with minimal paperwork — the exemption that made cheap direct-from-overseas parcels arrive with no customs bill. As of 2026 this exemption has been ELIMINATED for all countries: it ended for China and Hong Kong on May 2, 2025, for all remaining countries on August 29, 2025, was made indefinite by a CBP rule effective July 24, 2026, and faces statutory repeal on July 1, 2027. In practice this means a $60 dress ordered from an overseas retailer now owes duty plus carrier brokerage fees — documented cases include a $1,243 FedEx invoice on an ASOS order. It matters because every commercial parcel now clears as a dutiable entry, and some carrier duty bills are wrong and can be disputed.