U.S. Section 321 Imports Surge with Rising E-commerce Shipments From China

U.S. imports under the de minimis threshold of $800 enter free of tariffs and taxes and with minimal customs inspection and processing. The majority of these imports, shipped by postal and express delivery services, are retail products purchased online. Section 321 imports have been the key channel for Chinese business-to-consumer (B2C) online retailers that ship direct from factories or distribution centers in China to U.S. consumers. The large volume and fast growth of these imports from China since 2018 has led to increased Congressional scrutiny and proposed legislation to modify what some have called an outdated program not suited to the current trade environment of surging cross-border e-commerce.