June 25, 2024

Section 321 Customs Clearance: What It Is and How It Works

Section 321 customs clearance is a process that allows low-value shipments to enter the United States duty-free. This section was introduced in the Trade Facilitation and Trade Enforcement Act of 2015 to simplify and expedite the clearance process for shipments valued at $800 or less. Section 321 clearance has become increasingly popular with the rise of e-commerce, as it allows individuals and businesses to import goods from overseas without incurring high customs fees.

To qualify for Section 321 clearance, the shipment must be valued at $800 or less and be intended for personal use or consumption. The shipment must also be transported by a carrier approved by U.S. Customs and Border Protection (CBP), and the carrier must submit an electronic manifest prior to arrival. Once the shipment arrives in the U.S., CBP will review the manifest and determine if the shipment is eligible for Section 321 clearance. If approved, the shipment will be released without the need for formal entry and without the payment of duty or taxes.

Overall, Section 321 customs clearance is a valuable tool for individuals and businesses looking to import low-value shipments into the U.S. The process is straightforward and can save time and money compared to traditional clearance methods. As e-commerce continues to grow, it is likely that Section 321 clearance will become even more important for cross-border trade.

Overview of Section 321

Definition and Purpose

Section 321 customs clearance refers to a provision in the United States Customs and Border Protection (CBP) regulations that allows for the duty-free entry of low-value shipments. The purpose of this section is to facilitate the clearance of low-value shipments, which are defined as shipments valued at $800 or less.

This provision was introduced in order to reduce the burden on CBP resources and improve the efficiency of the clearance process for low-value shipments. By allowing these shipments to enter duty-free, CBP is able to focus its resources on higher-value shipments, which generate more revenue for the government.

Eligibility Criteria

In order to be eligible for Section 321 customs clearance, a shipment must meet certain criteria. First and foremost, the shipment must be valued at $800 or less. Additionally, the shipment must be imported by one person on one day.

There are also restrictions on the types of goods that are eligible for Section 321 clearance. For example, goods that are subject to quota or other restrictions, such as textiles and apparel, are generally not eligible for duty-free treatment under this provision.

It is important to note that while Section 321 clearance allows for duty-free entry of low-value shipments, it does not exempt them from other regulatory requirements, such as those related to safety and security. Shippers must still comply with all applicable laws and regulations in order to ensure that their shipments are cleared for entry into the United States.

Overall, Section 321 customs clearance provides a valuable tool for importers of low-value shipments, allowing them to clear their goods through CBP quickly and efficiently.

Customs Clearance Process

Documentation Requirements

To clear goods under Section 321, importers must provide the following documents to the Customs and Border Protection (CBP):

  • Commercial Invoice
  • Packing List
  • Bill of Lading or Airway Bill
  • Electronic manifest

The commercial invoice must include the following information:

  • Description of the goods
  • Quantity of the goods
  • Value of the goods
  • Country of origin
  • Harmonized Tariff Schedule (HTS) code

Entry Procedures

To clear goods under Section 321, importers must file an electronic entry with the CBP. The entry must include the following information:

  • Importer of Record (IOR) information
  • Consignee information
  • Description of the goods
  • Quantity of the goods
  • Value of the goods
  • Country of origin
  • HTS code

Once the CBP receives the entry, they will review the information and determine whether the goods are admissible. If the goods are admissible, the CBP will release them for delivery.

Duties and Taxes Exemption

Goods cleared under Section 321 are exempt from duties and taxes if the value of the goods is $800 or less. If the value of the goods exceeds $800, the importer is responsible for paying the applicable duties and taxes.

It is important to note that Section 321 does not exempt goods from other government agency requirements, such as FDA or USDA regulations. Importers must comply with all applicable regulations to clear their goods under Section 321.

Overall, the customs clearance process for Section 321 is straightforward and can be completed quickly if all required documents and information are provided accurately.