Overview

The U.S. Treasury has issued a new executive directive that reshapes the Section 321 de minimis exemption, the rule that previously allowed low‑value parcels to cross the border without duties. Effective 90 days after publication, the regulation aggregates the declared value of every package sent from the same overseas exporter to a single U.S. address within a rolling 30‑day window, meaning the old “split‑order” trick no longer works. Sellers on Amazon, as well as fast‑fashion marketplaces such as Temu and Shein, must immediately revisit pricing, shipping, and compliance strategies to avoid unexpected tariff bills.

Key Points

• De minimis ceiling stays at $800 — The exemption still applies only when the total value of all shipments from one foreign seller to one U.S. buyer stays below $800 in a month, but the calculation now sums every parcel instead of looking at each one individually.
• Order‑splitting loophole eliminated — Previously, a $750 order could be broken into two $375 boxes to dodge duties; the new rule treats those boxes as a single $750 transaction, removing the incentive to fragment shipments.
• Electronic filing trigger lowered to $200 — Once the combined value of shipments to a single address exceeds $200, the exporter must submit an electronic entry, even though duties are only assessed after the $800 threshold is breached.
• Chinese‑origin low‑cost sellers hit first — Platforms that rely on inexpensive, low‑value goods—most notably Temu, Shein, and many third‑party Amazon merchants—will see higher landed costs for U.S. consumers as duties kick in earlier.
• Compliance window limited to 90 days — Sellers have a three‑month period to redesign fulfillment workflows before Customs and Border Protection begins enforcing the aggregation rule.
• Potential margin compression for high‑volume sellers — Companies that routinely ship multiple $200‑plus items to the same buyer each month may face duty charges on a significant portion of their revenue, squeezing profit margins unless they adjust pricing or consolidate shipments.

How the Section 321 De Minimis Rule Works