New De Minimis Threshold Rules Take Effect

Starting January 1, 2026, shipments containing goods subject to Section 301 tariffs are no longer eligible for the Section 321 de minimis exemption, which previously allowed imports valued under $800 to enter the United States duty-free with minimal documentation. The change, which was authorized by the Trade Fairness Act of 2024, effectively ends the duty-free treatment of low-value e-commerce packages from China that has been a major point of contention with domestic retailers for years. CBP estimates the change will affect approximately 900,000 shipments per day that currently enter under de minimis.

For e-commerce importers and fulfillment companies, the operational implications are significant. Shipments that previously required only a CBP Form 3461 (informal entry) will now require formal entry documentation including commercial invoices, HTS classification, and Section 301 tariff determination. CBP has implemented a new "Section 301 goods" indicator in the ACE system that carriers must flag at time of manifest submission. Goods that are incorrectly filed as de minimis eligible face seizure and penalty exposure for the importer of record.

A narrow exemption exists for goods that have received an active Section 301 product exclusion from the USTR — these may still qualify for de minimis treatment for the duration of the exclusion. However, most current exclusions expired in December 2025, and the USTR has not yet published a new exclusion round. Direct-to-consumer brands sourcing from China should model the duty impact on their landed costs immediately, as the effective landed cost increase for low-value shipments can range from 15% to 50% depending on the product category and applicable tariff list.