What changed for low-value shipments after the de minimis suspension

TL;DR

• Section 321 commercial de minimis is suspended. China-origin shipments lost duty-free treatment May 2, 2025 (Executive Order 14256). All-country shipments lost it at 12:01 a.m. ET on August 29, 2025 (Executive Order 14324). The One Big Beautiful Bill Act, signed July 4, 2025, permanently repeals 19 USC 1321(a)(2)(C) effective July 1, 2027.
• Every formerly de minimis package now requires a formal or informal entry: Type 01 above $2,500, Type 11 at or under. Entry Type 86 (the ecommerce test entry) is no longer accepted. PGA flagging, duty payment, and bond requirements all kick in.
• On a $40 cotton t-shirt from Vietnam entered May 1, 2026, the duty stack is 16.5% MFN plus 10% Section 122 plus a $33.58 MPF minimum plus $0.05 HMF. The Tandom calculator returns $44.23 in duties and fees on a $40 invoice. The MPF minimum alone is 84% of merchandise value.
• International mail switched to a single ad valorem methodology on February 28, 2026. Foreign postal carriers no longer have the option to remit a flat per-item rate. Every dutiable postal item now pays the country-of-origin rate on declared value.
• The Tandom calculator at tariffs.tandom.ai/calculator handles low-value entries the same way as full-container entries. Paste the HTS code, origin, value, and date; get the full layered cost.

What changed and when

The chain ran short. Four official actions took commercial de minimis from a $0 duty-free pathway to a full formal-entry regime in roughly five months, and Congress codified the permanent repeal in the same window.

April 2 to May 2, 2025: China-origin only

Executive Order 14256 (April 2, 2025) suspended duty-free de minimis treatment for commercial shipments of China and Hong Kong origin, effective at 12:01 a.m. ET on May 2, 2025. CBP published the implementation notice as FR Doc 2025-07325 on April 28, 2025. After May 2, any China or Hong Kong package that would have ridden under Section 321 had to be filed formally (or informally below $2,500) and pay all applicable duty layers, including the then-active IEEPA reciprocal rate.

August 29, 2025: all countries

Executive Order 14324, "Suspending Duty-Free De Minimis Treatment for All Countries," published as FR Doc 2025-14897 (August 5, 2025), suspended commercial de minimis for every remaining country effective at 12:01 a.m. ET on August 29, 2025. The CBP/DHS implementation notice followed as FR Doc 2025-16802 on September 2, 2025, with the operational rules. From August 29 forward, no $800-or-under shipment from any country can enter the US duty-free under 19 USC 1321(a)(2)(C). Returning travelers ($200, 1321(a)(2)(A)) and bona fide gifts ($100, 1321(a)(2)(B)) remain in place because they sit on different subsections of the same statute.

July 4, 2025: permanent repeal codified

The One Big Beautiful Bill Act, signed July 4, 2025, repeals 19 USC 1321(a)(2)(C) commercial de minimis effective July 1, 2027. The Bill also created a civil penalty (up to $5,000 first violation, $10,000 per subsequent) for misuse of Section 321, effective August 3, 2025. Between today and July 1, 2027, the President's EO 14324 suspension is the operative authority. From July 1, 2027 onward, the statutory basis is gone and commercial de minimis cannot be reinstated by an EO. The alternative-duties program contemplated in the Bill, if it stands up, is the only path back; absent that, every commercial import requires an entry filing regardless of value.

February 24 and 28, 2026: surcharge and postal

Two separate February events compound the picture. Section 122 of the Trade Act of 1974 took effect at 12:01 a.m. ET on February 24, 2026 as a 10% temporary import surcharge after the Supreme Court struck down the IEEPA tariff regime in Learning Resources, Inc. v. Trump. Four days later, on February 28, 2026, the postal duty regime collapsed to a single ad valorem methodology, ending the dual-track election that foreign postal carriers had used for the prior six months.

February 25, 2026: continuation

Executive Order 14388, "Continuing the Suspension of Duty-Free De Minimis Treatment for All Countries" (FR Doc 2026-03829, February 25, 2026), continues the suspension under the new Section 122 framework. The mechanics stayed the same; the legal authority shifted from IEEPA to Section 122.

What replaces Section 321

Two entry types absorb the old Section 321 volume, plus a third for postal shipments. The headline cost driver is not the duty rate; it is the Merchandise Processing Fee floor.

Entry Type 11 (informal): at or under $2,500

Informal entries cover commercial shipments at or under $2,500 and a defined list of products under 19 CFR 143.21. Filing is simpler than a Type 01: no continuous bond is required, the MPF is a flat $2.62 per release rather than ad valorem with a minimum, and the entry summary can be filed by the carrier or a broker. All applicable duty layers still apply: MFN, Section 301, Section 122, Section 232 if relevant, AD/CVD if the order reaches the product. Type 11 is the right home for most former Section 321 ecommerce parcels.

Entry Type 01 (formal): above $2,500

Above $2,500 the entry must be Type 01 (or another formal-entry type as appropriate). The 0.3464% MPF kicks in with a fiscal year 2026 minimum of $33.58 and a maximum of $651.50. Continuous bond is required (a single-entry bond is the fallback). HMF (0.125% on ocean) is uncapped. PGA flagging, full classification at the 10-digit level, and proper origin determination all apply. For a brand consolidating ten $300 parcels into one $3,000 entry, the per-parcel cost drops significantly because the MPF minimum is shared across the whole entry rather than reapplied per parcel.

International mail (postal duty)

Postal shipments use a different mechanism, run by the carrier (USPS in coordination with foreign postal authorities) under CBP supervision. From August 29, 2025 through February 27, 2026, foreign carriers could elect either an ad valorem methodology (the country-of-origin rate applied to declared value) or a specific-rate methodology (a flat per-item dollar amount set in tiers by country). The carrier had to apply the same method to all postal shipments throughout a duty remittance period and could change once monthly with notice. Effective February 28, 2026, only the ad valorem methodology is allowed. CBP guidance is in CSMS messages on the postal remittance and bond requirements; brokers handling postal-tied flows should reread the latest CSMS in full before relying on any prior procedure.

Why the MPF minimum is the headline cost

On a Type 01 entry the 0.3464% ad valorem MPF doesn't bind until the entered value reaches roughly $9,694 ($9,694 × 0.3464% = $33.58). Below that, the $33.58 minimum applies. So a $40 package, a $400 package, and a $9,000 package all pay the same MPF. For DTC ecommerce, this single fact reshapes the unit economics: per-package MPF on a $40 product is more than 80% of merchandise value. The natural defenses are consolidation (combining many small packages into one larger Type 01 entry to spread the MPF), trade-zone use (FTZ admission for downstream allocation, with caveats below), and the Type 11 informal channel where the flat $2.62 applies. Spread across consolidated parcels, MPF stops being the dominant cost. Per-package, it dominates everything.

International mail and postal rules

Postal shipments remained the messiest category through the first six months of the suspension. The legal authority for carrier remittance, the duty methodology election, and the February 28, 2026 transition all sit in CBP-issued CSMS guidance rather than in Title 19 directly.

Two-track period (August 29, 2025 to February 27, 2026)

Foreign postal carriers had two duty remittance options:

• Ad valorem. The country-of-origin rate (MFN plus any applicable Chapter 99 layers and Section 122) applied to the declared value of each dutiable item.
• Specific-rate. A flat per-item dollar amount set in tiers by country. The exact tier values were specified in the implementation notice and CSMS.

Carriers had to apply one method consistently across an entire monthly remittance period and could change once per month with notice. They posted bonds with CBP to backstop remittance. Items whose declared value or origin couldn't be verified defaulted to the higher of the two computed amounts.

Single-track period (February 28, 2026 onward)

Effective February 28, 2026, only the ad valorem methodology is allowed. The specific-rate election is gone. Every dutiable postal item now pays the country-of-origin rate on declared value. Carriers continue to remit under bond to CBP. CBP CSMS messages are the operative source for the carrier-side procedure and the bond/payment cycle.

What this means for sellers shipping by mail

A foreign DTC brand using its national postal authority to fulfill US orders pays the country-of-origin rate at the border via the carrier's remittance. The cost lands on the recipient either as a USPS handling fee at delivery or, more commonly, as a higher fulfillment cost passed through by the seller in advance. The economics are similar to formal entry on the duty side; the difference is operational: the carrier handles remittance, and there is no MPF or HMF on a postal shipment (those fees attach to formal and informal entries, not postal mode).

Worked example

A DTC apparel brand sells men's cotton t-shirts. The product is made in Vietnam, sells for $40 each, and previously cleared US customers under Section 321 (one parcel per order, 80,000 orders per month). After August 29, 2025, those parcels need a formal entry. The brand consolidates daily into a single Type 01 entry per fulfillment center.

Per-package facts.

• HTS: 6109.10.00.18 (T-shirts, knit, cotton, men's)
• Country of origin: Vietnam (VN)
• Declared value: $40
• Entry date: May 1, 2026
• Mode: ocean (consolidation), then domestic last-mile
• No SPI claim, no AD/CVD scope, no exclusion

Per-package layer-by-layer build. Same shape you would see in the calculator: each line carries an authority badge, the regulatory citation, the rate, and the dollar amount contributed.

On a per-package basis, $44.23 in duties and fees on a $40 invoice is a 110.6% landed-cost premium. The MPF minimum ($33.58) is the dominant line; merchandise value never reaches the threshold where the 0.3464% ad valorem rate exceeds the floor. Duty alone (MFN + Section 122) is $10.60, an effective 26.5% on the line.

Consolidation flips the math

The brand fulfills 80,000 orders per month at a single LA warehouse, consolidating into one Type 01 entry per business day (about 3,800 lines per entry). The MPF minimum stops binding at roughly $9,694 of entered value: at 3,800 lines × $40 = $152,000 per entry, the 0.3464% MPF is $526.53, well above the floor and below the $651.50 cap. Per-package MPF on the consolidated entry is roughly $0.14 ($526.53 ÷ 3,800), versus $33.58 if filed as 3,800 separate Type 01 entries. The brand's duty stack stays the same per package ($6.60 MFN + $4.00 Section 122 = $10.60). HMF lands once on the consolidated ocean entry and is a rounding line at this scale.

Pre-suspension comparison. Under Section 321, those same 80,000 packages cleared at $0 duty and $0 MPF/HMF. Under the consolidated Type 01 regime, the brand's monthly liability is roughly $848,000 in duty (80,000 × $10.60) plus the spread MPF (about $11,200 on 22 business days × $526.53 per entry) plus HMF rounding. Total monthly customs liability: on the order of $860,000 versus zero. The brand absorbs that as higher landed cost, passes it on as price, or restructures the supply chain (for example, by qualifying for USMCA via a Mexico transformation step, which would zero out MFN and Section 122 on USMCA-originating goods at the cost of a re-engineered cut and sew).

Verification. Pull the per-package number with the calculator's live API. The calculator returns the same $44.23 in total layered cost for this HTS, origin, value, and date.

Common pitfalls

The mistakes that bite DTC brands and their brokers most often since the suspension.

Treating all 1321 exemptions as gone

The suspension and the OBBBA repeal target 19 USC 1321(a)(2)(C) (commercial). Returning-traveler ($200, subsection (A)) and bona-fide-gift ($100, subsection (B)) exemptions are unchanged. A brand answering customer-service questions about "gifts" needs to know the gift exemption is for individual recipients of unsolicited bona fide gifts, not for commercial sales labeled as gifts.

Splitting a commercial shipment to dodge the threshold

Splitting one $1,200 commercial shipment into three $400 parcels to claim Section 321 personal exemptions on each is the exact pattern OBBBA's $5,000/$10,000 civil penalty targets. The penalty stacks on top of recoverable duty. CBP has been signaling this will be an audit focus area.

Assuming the FTZ "locks in" pre-suspension treatment

Goods admitted to a Foreign Trade Zone before August 29, 2025 and withdrawn for consumption today are subject to current duty rates including Section 122, not the pre-suspension rates in effect on the admission date. The CBP factsheet on EO 14324 makes this explicit. FTZ admission delays liquidation; it does not preserve a tariff regime that has been suspended for the withdrawal date.

Filing Type 86 after August 29, 2025

Entry Type 86 was the test entry for Section 321 ecommerce shipments. CBP no longer accepts Type 86 for new clearances after August 29, 2025. Brokers used to defaulting low-value ecommerce to Type 86 should switch to Type 11 (or Type 01 above $2,500) and bill the importer accordingly.

Forgetting Section 122 on low-value entries

The 10% Section 122 surcharge effective February 24, 2026 applies on Type 11 and Type 01 entries the same way it applies on full-container entries. It does not stack on Section 232 but does stack on MFN, Section 301, and AD/CVD. Quoting only MFN to the importer on a sub-$100 entry undersells the duty stack by 10 percentage points until July 24, 2026 (when Section 122 is statutorily capped absent legislation).

Quoting MPF as a percentage on small parcels

On Type 01 the MPF is 0.3464% with a $33.58 minimum. Below roughly $9,694 of entered value the minimum binds and MPF is flat. Quoting "MPF is 0.35% so on $40 the fee is fifteen cents" is wrong by a factor of 220. The minimum is the binding constraint on every former Section 321 package on a Type 01. On Type 11 the MPF is a flat $2.62 per release.

Confusing postal and entry duty paths

Postal shipments (international mail handled by a foreign postal carrier into USPS) follow CBP's postal duty regime, which uses ad valorem-only methodology after February 28, 2026 and has its own carrier-bond mechanics. Commercial parcels via courier (UPS, FedEx, DHL, etc.) follow Type 11 or Type 01. Brokers occasionally treat a courier parcel as if it inherited the postal regime (or vice versa), with no duty-payment mechanism set up correctly.

Missing AD/CVD scope on a low-value line

A low entered value does not exempt a line from AD/CVD scope. A $40 cotton t-shirt is unlikely to be in an AD/CVD order, but a $40 fastener, a $40 solar panel sample, or a $40 ball bearing may well be. The Tandom AD/CVD lookup at compliance.tandom.ai/adcvd-catalog checks the active order list against HTS code, country, manufacturer, and entry date the same way for a $40 line as for a $40,000 line.

Underpricing the broker fee on low-value entries

The fixed cost of filing a Type 11 or Type 01 entry (broker time, ACE filing fee, bond allocation) is roughly the same on a $40 entry as on a $4,000 entry. Brokers used to flat-rate Section 321 manifest clearance need to reprice for individual formal entries. Importers expecting "the same low cost" face a step change that the suspension itself doesn't even capture.

Forgetting PGA flagging on low-value parcels

PGA requirements (FDA, FCC, CPSC, EPA, USDA) apply at the HTS and country level, not at a value threshold. A $40 children's toy from any country still needs a CPSC Certificate of Compliance and, effective July 8, 2026, eFiled CoCs in ACE PGA Message Set. Brokers absorbing former Section 321 volume into formal-entry workflows hit PGA holds they didn't see under Type 86 manifest clearance.

Treating the OBBBA repeal as the controlling date

The OBBBA repeal is effective July 1, 2027. Until then, EO 14324's suspension is what's collecting duty on every parcel. The two work together (the EO suspends, the statute repeals); they don't overlap or wait. A broker who tells an importer "you have until July 2027" is two years late.

Glossary

Section 321

The administrative exemption at 19 USC 1321 that historically let imports valued at or under $800 enter duty-free with simplified manifest clearance. Subsection (a)(2)(C) is the commercial track; (A) is returning travelers ($200), (B) is bona fide gifts ($100). Only (C) is suspended.

De minimis

Common shorthand for the Section 321 commercial exemption. "De minimis is suspended" means commercial 1321(a)(2)(C) is suspended. Personal-use de minimis ((A) and (B)) is unchanged.

Executive Order 14256

The April 2, 2025 EO suspending duty-free de minimis treatment for commercial shipments of China and Hong Kong origin, effective May 2, 2025.

Executive Order 14324

The July 30, 2025 EO suspending duty-free de minimis treatment for commercial shipments from all countries, effective at 12:01 a.m. ET on August 29, 2025. Published as FR Doc 2025-14897.

Executive Order 14388

The February 25, 2026 EO continuing the suspension under the Section 122 framework after the IEEPA tariff regime was struck down. Published as FR Doc 2026-03829.

One Big Beautiful Bill Act (OBBBA)

Public law signed July 4, 2025 that permanently repeals 19 USC 1321(a)(2)(C) commercial de minimis effective July 1, 2027. Also created a $5,000 / $10,000 civil penalty for misuse of Section 321 effective August 3, 2025.

Entry Type 11 (informal)

Commercial entry type for shipments at or under $2,500. Simpler than Type 01: flat $2.62 MPF per release, no continuous bond required. Replaces most former Section 321 ecommerce parcels at this value tier.

Entry Type 01 (formal)

Standard formal-entry consumption type for commercial shipments above $2,500. Continuous bond required, 0.3464% MPF with $33.58 minimum / $651.50 maximum (FY26), full classification at 10-digit HTS, all PGA flagging.

Entry Type 86

The CBP test entry created in 2019 to enable Section 321 ecommerce manifest clearance. Discontinued for new clearances after August 29, 2025.

MPF

Merchandise Processing Fee. 0.3464% ad valorem on Type 01 with FY26 $33.58 minimum, $651.50 maximum, plus $4.03 if filed manually. $2.62 flat per release on Type 11. Waived for USMCA-originating goods, Israel FTA, AGOA-eligible goods, and a few others. Trade-remedy exclusions never waive MPF.

HMF

Harbor Maintenance Fee. 0.125% ad valorem on ocean shipments only. No minimum or maximum. Applies to Type 01 and Type 11 but not to postal mail.

Section 122

10% temporary import surcharge under 19 USC 2132 effective February 24, 2026. Capped at 15% ad valorem and at 150 days absent legislation, so it terminates July 24, 2026 unless extended. Stacks on MFN, Section 301, and AD/CVD; does not stack on Section 232.

Ad valorem postal methodology

The single duty-collection methodology allowed for international mail effective February 28, 2026: the country-of-origin rate applied to declared value. Replaces the dual ad valorem / specific-rate election that ran from August 29, 2025 to February 27, 2026.

Specific-rate postal methodology

The flat per-item duty methodology, set in tiers by country, that foreign postal carriers could elect from August 29, 2025 through February 27, 2026. No longer available after February 28, 2026.

Bonded warehouse and FTZ

Customs-controlled storage where goods sit before formal entry. Withdrawal for consumption is the entry event for duty-rate purposes; the rate at withdrawal applies, not the rate at admission. FTZ status alone does not preserve a pre-suspension duty regime.

FAQ

High-intent questions brokers, forwarders, and DTC brands ask most often.