The End of Section 321: What It Means for Importers — and How 3DM Can Help

The End of Section 321: What It Means for Importers — and How 3DM Can Help

🚨 The End of Section 321 Is Here: Key Updates & How 3DM Keeps You Ahead  

> Update (late August 25, 2025):  
> - CBP already enforces the $800/day de minimis limit via ACE (since August 12).  
> - Fully suspended starting August 29, 2025.  
> - Postal carriers must choose value-based or flat-fee ($80–$200) duties until February 28, 2026.  
> - After that: ad valorem only.

🔄 What’s Changing With Section 321?  

For years, Section 321 let low-value (≤ $800) shipments into the U.S. duty-free. This was a cornerstone for:  

- 🛒 E-commerce sellers shipping from overseas suppliers  
- 🇨🇦 Canadian exporters serving U.S. customers  
- 🧪 Brands testing new markets without big import commitments  

Now:  

- ❌ No more duty-free imports across the board  
- 🧾 More customs processing and oversight 
- 💸 Rising landed costs, for even small parcels  
- 🔧 Urgent need to rethink supply chains

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🛂 Enforcement Is Already in Motion  

- As of August 12, 2025, CBP’s ACE is withholding parcels exceeding $800 per consignee per day unless formally entered or returned.  
- The full de minimis rule ends on August 29, 2025.  

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📮 Postal Shipments: A Temporary Exception

- From Aug 29, 2025 to Feb 28, 2026, postal carriers may choose:  
  - Ad valorem duty (based on value), or  
  - Flat-fee ($80–$200 per item) 
- Duty methodology must remain consistent for the month, with 24-hour CBP notice for changes.  
- After Feb 28, 2026 — ad valorem only.

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⚠️ The Challenge Ahead  

The window for duty-free shipping is closed. Now:  

- ⏳ Shipments may face slower delivery  
- 💥 Unexpected duties could shrink margins  
- 🇨🇦 Canadian brands may see low-cost items jump up 60%+ in landed cost  
- 🤯 Compliance complexity is soaring  

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 🧭 How 3DM Helps You Stay Compliant & Competitive  

At 3DM, we build scalable, easy-to-implement supply chain solutions reflecting today’s new customs reality:  

📦 Warehousing & Fulfillment  
Three strategically located Quebec facilities help you position inventory smartly and reduce cross-border delays.  

🚚 Cross-Border Logistics  
Formal entry workflows and routing strategies to prevent withheld shipments and penalties.  

🏷 Value-Added Services  
Compliance labeling, kitting, documentation support — ensuring shipments are customs-ready.  

💻 Tech & Integrations  
Visibility into inventory, orders, and costs via integrated systems — vital for navigating these changes.  

🧠 Consultative Support  
We guide duty methodology choices, help plan for February 2026, and redesign workflows for long-term resilience.  

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⭐ Why 3DM Stands Out  

- 🧩 Tailored solutions — no one-size-fits all  
- 🔍 Proactive services — built for today’s tight compliance environment  
- 🤝 Canadian-focused — optimized for cross-border impacts  

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📣 Let’s Talk  

With Section 321 ending and enforcement live, the time to act is now.  

Reach out to 3DM to build a seamless post-321 strategy.  
📧 info@3-dm.com | 🌐 3-dm.com  

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❓ FAQ  

When did enforcement begin?
CBP’s ACE has enforced the $800 threshold since August 12, 2025.  

When does Section 321 end?
It ends fully on August 29, 2025.  

What about postal shipments?
From Aug 29, 2025 — Feb 28, 2026, carriers choose between ad valorem or $80–$200 flat fees. After that, only ad valorem applies.  

How will this affect costs? 
Even low-cost goods face duty, tariffs, and processing fees — some may see 60%+ cost increases.  

What should I do now?
- 🗺️ Rework cross-border distribution  
- 📍 Place inventory strategically in Canada/U.S.  
- 🤝 Partner with 3DM for compliant, cost-effective logistics  

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