Section 321: Suspended Ecommerce China Products

Immediate Action: How to Ship Chinese-Origin Products into the U.S. Now

As of February 4, 2025, products manufactured in China can no longer be shipped into the U.S. using Section 321. Instead, they require formal customs clearance.
To ensure your shipments remain compliant and avoid costly delays, complete the form below to receive expert guidance on alternative solutions.

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Current State: What This Means for Your Business

The new restrictions impact all U.S.-bound shipments under Section 321 if the Country of Origin (COO) is China. All eCommerce merchants and online sellers need a strategic plan to continue cross-border fulfillment without disruptions.

Key Guidelines for Importing Chinese-Origin Goods into the U.S. (via Canada & Other Routes)

Formal Entry Requirement – All Chinese-manufactured goods must now go through formal U.S. customs clearance instead of duty-free under Section 321.
Higher Compliance Costs – Expect increased customs brokerage fees and potential tariffs, requiring cost recalibration.
Canada as a Trans-shipment Hub – Some eCommerce sellers are leveraging Canada-based fulfillment centers as a buffer to reclassify shipments and access U.S. entry exemptions.
Alternative Manufacturing Sources – Some merchants are exploring relocating production to Vietnam, Mexico, or Taiwan to maintain Section 321 eligibility.
Consider Partnering with Logistics Experts – Avoid delays and compliance risks by working with a cross-border logistics provider with deep experience in customs processing and duty minimization strategies.

Our Recommendation: Work with ShipSavvy for Seamless Compliance

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

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What Happened? Why Was Section 321 Suspended for China?

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.

What Is Section 321?

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.
- Current Limitation: Now, if your goods are made in China, they are no longer eligible for duty-free entry under Section 321.

FAQ: Your Top Questions Answered

1. Can I still use Section 321 if my products are shipped from China but stored in a third country first?
  - No. Section 321 eligibility is based on Country of Origin, not just the last shipping location.
2. What are my options for shipping Chinese goods into the U.S. without paying excessive duties?
  - 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.

Announcements

Section 321 Suspended for Chinese Goods: What You Need to Know in 2025

Status Updates