De Minimis Cargo Clearance Goes The Way of The Dodo
**An Era Concludes: Section 321 Cargo Clearance Phased Out, Reshaping Duty-Free Shipping for Businesses**
A significant shift in international trade policy has taken effect, profoundly impacting businesses that rely on duty-free imports. The long-standing de minimis exemption under Section 321 of the Tariff Act, a critical mechanism for streamlined cargo clearance, has officially been eliminated.
As of August 29, 2025, the United States has discontinued this widely utilized policy. Previously, the exemption permitted low-value shipments, specifically those valued under $800 USD, to enter the country without incurring duties, taxes, or extensive formal entry procedures. Its removal marks the end of an era for duty-free shipping for businesses, necessitating a re-evaluation of import strategies and cost structures. This policy change will undoubtedly have far-reaching implications across the supply chain.