1. Section 321 Is Back – But only until May 1! – Shipments under $800 from China now require formal entry and tariffs to be paid.
2. Stay Prepared for Policy Shifts – Future changes remain possible, so businesses should stay informed.
3. Act Now to Avoid Future Costs – Import inventory soon before any potential new restrictions take effect!

The ShipSavvy team is helping merchants like you navigate Section 321 restrictions by offering:
✔ Customs Clearance Facilitation – Streamlined customs processing for all shipments originating from China
✔ Duty Reduction Strategies – Optimized routing solutions to minimize tax liabilities
✔ Canadian Warehousing & Transshipment – Store and ship products from Canada to take advantage of any possible savings or exemptions
✔ Real-Time Guidance – Expert consultation on compliance best practices

The U.S. government suspended Section 321 eligibility for Chinese-manufactured goods due to concerns over:

• Increased Duty Avoidance – Retailers and importers were using loopholes to circumvent import duties.
• Trade Policy Adjustments – Ongoing trade disputes prompted stricter import restrictions.
• National Security Concerns – Authorities cited risks associated with supply chain transparency and compliance.

While these policy changes are aimed at reducing reliance on Chinese manufacturing, they significantly impact eCommerce businesses that depend on direct China-to-U.S. shipping.

Section 321 is a U.S. Customs and Border Protection (CBP) regulation that allows duty-free entry of shipments valued at $800 or less per day, per recipient.

• Benefit: Small parcel shipments bypass duties and formal entry paperwork.
• Who Used It? eCommerce sellers, drop shippers, and third-party logistics (3PL) providers heavily relied on Section 321 to cut costs and expedite shipments.

1. Can I still use Section 321 if my products are shipped from China but stored in a third country first?
   
   • ❌ No. Effective May 2, 2025, Section 321 will be suspended for all goods with Country of Origin = China or Hong Kong, even if the shipment originates from another country. This rule is based on manufacturing origin, not shipping origin. 
   • ✅ Yes – as of February 7, 2025, the U.S. reinstated duty-free entry for shipments under $800. However, this could change again, so we recommend moving shipments as soon as possible.
2. What are my options for shipping Chinese goods into the U.S. without paying excessive duties if Section321 is not available in the future?
   • Consider formal entry with a duty reduction strategy or use a Canadian transshipment model (where possible and pre-approved by CBP).
3. How does Canada’s role in shipping help avoid Section 321 restrictions?
   • Canada-based fulfillment centers could allow you to reclassify inventory and explore alternative duty exemptions, while keeping inventory closer to the US.
4. What if I manufacture products in China but assemble them elsewhere?
   • The final assembly location can sometimes impact duty classification. Check with a customs expert and get pre-approval from CBP.
5. Does this impact all products from China, or just certain categories?
   • The restriction applies to all goods with a China Country of Origin unless otherwise exempted.
6. Are there any new trade agreements that could change this?
   • Trade policies are dynamic, and exceptions may emerge. Bookmark this page for updates.
7. Does this change affect only shipments from China?
   
   • No. This change applies to any product manufactured in China or Hong Kong, regardless of where it's shipped from. Goods routed through Canada, Mexico, or other third countries are still affected if COO is China or Hong Kong.