Importing Into the United States — a Guide for People Who Actually Ship Things

Section 321 Is Gone — What Every Shipment Pays Now

What replaced Section 321 — duty from the first dollar

Section 321 of the Tariff Act of 1930 was the provision that let shipments valued at $800 or below per person per day enter the United States free of duty — an exemption written for tourist souvenirs that ended up carrying most of cross-border e-commerce. CBP cleared those shipments on a Type 86 electronic entry: no duty, no Merchandise Processing Fee, no bond, no broker, seconds on the clock. That description has been dead since 29 August 2025. The exemption was suspended by executive action, for every country of origin rather than the single-country list the 2024–2025 proposals had argued about, and the Supreme Court’s February 2026 decision against the IEEPA tariff authority did not bring it back. Duty is now due from the first dollar — on a $12 phone case and a $42 hoodie alike.

The old threshold tested against goods value only, and that valuation rule still governs what you pay. US customs assesses duty on the transaction value of the goods, not on CIF: international freight and insurance come out of the duty base when your invoice identifies them separately. A $6,000 consignment with $1,200 freight and $180 insurance therefore carries a dutiable value of $6,000, not $7,380. Getting that split onto the commercial invoice is worth real money on every shipment, and it is the one piece of the old Section 321 conversation that still has teeth. The rest of it — the per-person-per-day arithmetic, the speed of a Type 86 entry, the question of whether a $750 parcel or an $801 parcel crosses a line — describes a regime that ended in August 2025.

Splitting an order into $500 parcels to slide under a threshold is pointless now — there is no threshold to slide under. What CBP’s Automated Targeting System looks for instead is the opposite behaviour: invoices that understate what was actually paid. Declared values are matched against industry averages for the HTSUS code, the country of origin, and the shipper’s history, and a mismatch triggers a hold at the express consignment hubs where the volume is highest (JFK, LAX, ORD, MEM). Understating value was always a violation; with the exemption gone there is not even a plausible reason for the number to be wrong. Penalties run to the unpaid duty plus a civil penalty at least equal to the revenue loss, and a knowing understatement can cost you the merchandise outright.

One narrow exemption survives: genuine bona fide gifts and personal accompanied items valued at $100 or less. Everything else is dutiable, and there is no per-person or per-day element left, because there is no threshold for it to be per person per day against. If a carrier or a filing agent tells you a low-value parcel still clears free of duty, ask which provision they are relying on — the answer will be a historic one. The current position, and the full list of what still stands in other markets, is on the Section 321 reform page.

Formal consumption entry — when it is mandatory

Above $2,500 of goods value, formal entry is mandatory. It is also the normal choice for any commercial shipment below that ceiling, since the informal track still requires a filing and still charges duty. The mechanism is a formal consumption entry (CBP Form 3461 for entry, Form 7501 for entry summary). A licensed customs broker files the entry in ACE (Automated Commercial Environment), CBP assesses duty and fees, the entry is released, and the entry summary is filed within 10 working days.

A formal entry requires a customs bond — either a single-entry bond covering one shipment (typically 0.5–0.7% of the entered value, $100 minimum at most surety companies) or a continuous bond covering all entries for a year ($50,000 minimum bond amount, annual premium around $250–500 depending on volume). For anyone importing more than two or three times a year, the continuous bond pays for itself on the third entry. The bond is not insurance — it's a guarantee to CBP that duties, taxes, and fees will be paid. If they aren't, the surety company pays CBP and comes after you for reimbursement.

The Merchandise Processing Fee applies to every formal entry. It's 0.3464% of the entered value, with a minimum of $34.58 and a maximum of $670.86 per entry. On a $10,000 shipment, the MPF is $34.64. On a $200,000 shipment, the MPF is $670.86. On a $5 million shipment, the MPF is still $670.86 — it caps. The MPF is not a duty and is not waived by free trade agreements. Every formal entry pays it, no exceptions except for goods from certain FTA partners where the agreement specifically waives the MPF (USMCA, KORUS, and a few others).

There is also an informal entry track, available for shipments up to $2,500 — less paperwork, no bond required, and a small fixed MPF instead of the ad valorem one, but a simplified CBP Form 368 or 7501 must still be filed. Above $2,500, formal entry is mandatory regardless of any other factor. The informal range is useful for low-value commercial samples, warranty replacements, and one-off personal imports, but it is not a practical lane for regular commercial shipments — the broker still needs to file, and duty is owed either way.

The Duty Math — MFN + Section 301 + MPF

China vs Vietnam — the Origin Calculation Changed in July 2026

The largest controllable variable in US import cost is still the country of origin on the commercial invoice — but since 24 July 2026 it is no longer a two-horse race. A Section 301 action targeting forced labour took effect that day across 60 economies, replacing the 10% Section 122 surcharge that expired the same day. It stacks on top of the existing China Section 301 lists, and Chinese goods carry the additive 12.5% version. So do Vietnamese goods, which previously faced MFN only. Because both sides of the comparison picked up the same 12.5 points, the China–Vietnam differential is unchanged — but the absolute cost of importing from either has risen. Here is what it does to five common categories:

Rates as of 16 October 2026. Section 301 List assignments are per the USTR Federal Register notices. The 12.5% column is the forced-labour action effective 24 July 2026 (FR 2026-15181), which applies to Vietnamese origin as well as Chinese and is additive to both. Because both origins carry the same 12.5 points, the China–Vietnam differential is unchanged — but the absolute duty on either has risen by 12.5 points. MFN rates apply identically to both origins. Full Section 301 product list →

Layer 1: MFN — the baseline rate

Every product imported into the US has an MFN (Most Favored Nation) duty rate assigned by its 10-digit HTSUS code. This is the rate the US applies to imports from all WTO members in the absence of a specific trade agreement or penalty. MFN rates on industrial goods average around 2–5%. Consumer electronics: typically 0–2.5%. Apparel: 10–16%, depending on fiber content and construction. Footwear: up to 37.5% on certain rubber-soled shoes. The rates are not political — they're the product of decades of WTO tariff bindings, and they're published in the Harmonized Tariff Schedule of the United States, a 4,000-page document updated annually.

The duty is calculated on the transaction value of the goods: what you paid the supplier, plus packing, any selling commission, the value of tooling or materials you supplied to the factory, and royalties paid as a condition of the sale. International freight and insurance come out, provided your invoice identifies them separately. If your invoice says $10,000 FOB and the freight was $800, CBP assesses duty on $10,000 — not $10,800. The rate is applied to the whole customs value, not the amount above any threshold. A $5,000 shipment at 5% pays $250 in MFN duty. A $50,000 shipment at 5% pays $2,500. Linear, predictable, mechanical.

If you don't know your HTSUS code, look it up or pay a broker to classify it. Guessing wrong has consequences: underpaying by misclassifying goods into a lower-rate chapter generates a duty demand plus interest going back five years if CBP finds a pattern. Overpaying because you guessed conservatively is less legally risky but still expensive. Classification is the single highest-value task a customs broker performs on a standard entry. Our HS Code Duty Estimator can give you a directional starting point, but for binding certainty, a broker's classification on a formal entry or a CBP binding ruling is what you need.

Layer 2: Section 301 — the China overlay

Section 301 of the Trade Act of 1974 allows the US Trade Representative to impose additional duties on goods from countries engaged in unfair trade practices. Since 2018, the US has maintained four lists of additional duties on goods of Chinese origin. These stack on top of the MFN rate — they are not a replacement or an alternative rate. The effective duty rate on a product from China is MFN + Section 301.

The current Section 301 landscape as of mid-2026:

• List 1 (HTSUS 9903.88.01) — 25%. Industrial machinery, medical devices, aircraft parts, certain electronics. Originally imposed July 2018. Still in effect on most items; some exclusions have been granted and extended for specific medical and industrial products.
• List 2 (HTSUS 9903.88.02) — 25%. Chemicals, plastics, agricultural products. Imposed August 2018. Few exclusions remain active.
• List 3 (HTSUS 9903.88.03) — 25%. Broad range of consumer and industrial goods: furniture, auto parts, tools, appliances, electronics components. Originally 10%, raised to 25% in May 2019. Some electronics subcategories have had the rate reduced to 7.5% through exclusion processes.
• List 4A (HTSUS 9903.88.15) — 7.5%. Apparel, footwear, toys, consumer electronics, smartphones, laptops. Imposed September 2019 at 15%, reduced to 7.5% under the January 2020 Phase One agreement. The 7.5% rate has persisted through the Biden and post-Biden administrations with no announced termination date.

The practical upshot, with the 2026 forced-labour layer included: a knitted cotton shirt from China (HTSUS Chapter 61) pays 12% MFN + 7.5% Section 301 List 4A + 12.5% forced-labour = 32%. A steel valve from China (HTSUS Chapter 84) pays 2% MFN + 25% List 1 + 12.5% = 39.5%. A smartphone from China (HTSUS 8517.12) pays 0% MFN (ITA duty-free) + 7.5% List 4A + 12.5% = 20%. The Section 301 List determines the China-specific portion, not the product category or the MFN rate. Our Section 301 Guide has the full product-by-product breakdown and the current exclusion list.

Goods from Vietnam, India, Bangladesh, Indonesia, and other non-China origins face no China-specific Section 301 duties — but since 24 July 2026 they are not necessarily at plain MFN either. The forced-labour action reaches 60 economies: Vietnam and Australia at additive 12.5%, India, Indonesia, Bangladesh, Cambodia, Malaysia and Mexico at additive 10%, the EU and Taiwan, China topped up to a 10% floor, Japan, Korea and Switzerland to 12.5%. The China-specific overlay is still the largest single lever — up to 25 percentage points of the goods value — which is why supply chains have kept moving out of China since 2018. It is just no longer the whole story.

Layer 3: MPF — the tax on the paperwork

The Merchandise Processing Fee is 0.3464% of the entered value, with a floor of $34.58 and a ceiling of $670.86 per formal entry. It's charged on every formal entry regardless of the product, the origin, the duty rate, or the free trade agreement status (unless the FTA specifically waives it). For a $10,000 entry, the MPF adds about 0.35% to your total import cost — negligible. For a $2,000 entry, the $34.58 minimum represents 1.6% of the goods value and becomes a meaningful line item. For a $500,000 entry, the $670.86 cap is less than 0.13% and fades into rounding error against the duty and logistics costs.

The MPF is the reason why consolidating small shipments into larger, less frequent entries can save money: one $10,000 entry pays $34.64 in MPF. Ten $1,000 entries pay $316.70 in MPF ($34.58 × 10). The duty might be identical in both scenarios, but the MPF is not. Consolidation saves on fees. The trade-off is inventory carrying cost vs customs fees — a supply chain question, not a customs question, but the MPF math is part of the answer.

Bonds and Brokers — the People and Paper Between You and CBP

Customs bonds: a guarantee, not insurance

A customs bond is a financial guarantee posted with CBP that duties, taxes, and fees will be paid on an entry. It's required for every formal consumption entry. There are two types:

• Single-entry bond. Covers one shipment. Cost: typically 0.5–0.7% of the entered value, with a $100 minimum at most surety providers. If you import twice a year, buy single-entry bonds. If you import more often, a continuous bond is cheaper.
• Continuous bond. Covers all entries for one calendar year. The minimum bond amount is $50,000 (or 10% of the previous year's total duties, taxes, and fees — whichever is larger). Annual premium: typically $250–500 for the minimum bond, scaling up with volume. A continuous bond makes sense if you import three or more times a year. The break-even is roughly at two formal entries per year — by the third entry, you've saved money over single-entry bonds.

The bond amount is not the cost — it's the coverage limit. You pay the premium (a fraction of the bond amount), and the surety company guarantees up to the bond amount. If you underpay duties and CBP issues a bill you don't pay, the surety pays CBP and pursues you for reimbursement. The bond is not a duty payment method — it's a compliance guarantee. You still need to pay the actual duties through your broker or directly through ACE.

Do you need a customs broker?

For a low-value shipment filed on an informal entry: not usually. Carriers such as FedEx, UPS and DHL file those entries electronically and nothing is required from you. For anything on a formal entry, a licensed broker is the practical default — technically you can self-file through ACE, but almost nobody does.

For formal entries: technically, an importer can self-file through ACE, but practically, almost everyone uses a licensed customs broker. The broker's job on a standard entry includes: classifying the goods under the correct HTSUS code, determining the applicable duty rate (including Section 301 and any antidumping/countervailing duties), filing the entry and entry summary in ACE, calculating and remitting duties and fees, and maintaining the entry records for five years as required by CBP regulations.

Broker fees for a standard formal entry typically run $75–200 per entry, depending on volume and complexity. For high-volume importers doing hundreds of entries a year, per-entry fees drop toward the low end. For occasional importers doing one entry a quarter, expect the high end. The broker fee is separate from the duty and the MPF — it's a service fee paid to the broker, not a government charge. The full 2026 fee structure, the disbursement-fee trap that grows with your duty bill, and the volumes at which self-filing genuinely beats a broker are set out in the customs broker cost guide.

When choosing a broker, the relevant questions are: do they have experience with your product category? Do they have a direct ACE connection or do they file through a third-party portal? What's their error-and-omission rate — meaning, how often do their entries get flagged for CBP review? A broker who misclassifies 5% of entries costs you more in audit exposure than a broker who charges $50 more per entry and gets it right every time. The cheapest broker is not the one with the lowest filing fee — it's the one whose classifications survive a CBP audit.

US vs EU — The Same Product, Two Different Import Bills

People selling into both markets often assume the import cost is similar. It is not — but the assumption used to be wrong for the wrong reason. Both markets have now closed their low-value duty exemptions: the US suspended Section 321 on 29 August 2025, and the EU replaced its €150 duty exemption with a flat €3 per item on 1 July 2026. So this is a comparison between two dutiable markets, one of which charges VAT from the first euro and one of which charges none. Here is what happens to the same $2,000 shipment in both:

Assumes $2,000 FOB electronics from China, 4% MFN applied to the goods value in the US and to CIF in the EU, 21% EU VAT, €1 = $1.09. Neither market’s 2026 low-value change affects a $2,000 shipment — both sit above the lines that moved. Section 301 and the July 2026 forced-labour layer are not modelled here; add 7.5–25% to the China-origin duty line for either market. The EU’s VAT on the duty-paid value is the largest single difference: at $507 it exceeds the entire $487 gap, because the US charges nothing equivalent at the federal level.

Where Your Goods Actually Enter — the Port Geography That Shapes Your Costs

The port of entry determines which CBP field office processes your entry, which brokers are available locally, and what the drayage and warehousing costs look like. Most importers don't choose their port of entry — the shipping line's routing does. But understanding the port landscape helps you negotiate routing and anticipate costs.

Los Angeles / Long Beach — the main event

The largest container port complex in the Western Hemisphere. Roughly 40% of US containerized imports enter through LA/LB. If your goods are manufactured in China or Southeast Asia and destined for the US market, they almost certainly transship through LA/LB unless you specifically route them elsewhere. The port's CBP staff is the largest in the country, and the broker ecosystem is the most competitive — per-entry broker fees are lowest here because of volume. The downside: congestion. When the port backs up (as it did in 2021–22), demurrage charges accumulate at $100–200 per day per container after the free time expires. LA/LB is the default port. Deviate only with a specific reason.

New York / New Jersey — the East Coast hub

The largest East Coast port complex and the natural entry point for goods destined for the Northeast and Midwest via rail. Higher labor costs than LA/LB translate to slightly higher terminal handling charges, but the drayage savings for East Coast distribution centers can offset the difference. CBP staffing is robust. Broker competition is healthy. If your warehouse is in New Jersey, Pennsylvania, or Ohio, NY/NJ probably beats LA/LB on total door-to-door cost even if the ocean freight is higher — the inland rail or trucking differential from LA to the East Coast can be $2,000–3,000 per container.

Savannah — the growth story

The fastest-growing container port in the US, driven by Southeast distribution center expansion (Home Depot, Walmart, Amazon all have massive DCs within 200 miles of Savannah). CBP operations are scaled to match volume growth. Broker availability is good but less competitive than LA/NY. Savannah makes sense if your goods are destined for the Southeast or if you want to avoid LA/LB congestion risk. The port's infrastructure investment over the past decade — deeper channel, larger cranes, expanded rail yard — means it can handle the largest vessels in the global fleet.

Seattle / Tacoma — the Northwest alternative

Smaller volume than LA/LB but faster transit from China (typically 2-3 days less ocean time). The Northwest Seaport Alliance has invested in on-dock rail, making Seattle/Tacoma competitive for Midwest-bound intermodal freight. CBP operations are efficient. Broker options are fewer than LA but adequate. The case for Seattle/Tacoma is usually about avoiding LA congestion rather than cost — the ocean freight is similar, but the reliability premium can be worth it when LA terminals are congested.

Miami / Houston / Oakland

Secondary ports with specific trade lane advantages. Miami for Latin American transshipment. Houston for Gulf Coast petrochemical and industrial goods. Oakland for Northern California distribution and agricultural exports (the port's primary business is exports, which means plenty of empty container capacity for imports on the backhaul). Each has competent CBP operations and local broker availability. Use them when the geography makes sense, not as general-purpose import ports.

The Mistakes CBP Sees Every Day — Avoid These

Undervaluing goods on the commercial invoice

Declaring a $5,000 shipment as $700 to slide under Section 321. CBP's Automated Targeting System compares declared values against industry averages for the HTSUS code, the country of origin, and the shipper's history. A shipment of electronics from Shenzhen declared at $700 when the average for that HTSUS code from that origin is $4,500 triggers an automatic hold. CBP then requests transaction evidence — the actual bank transfer, the supplier's commercial invoice, the Alibaba transaction record. If the declared value is 20% or more below what CBP determines is the correct transaction value, the penalty is the unpaid duty plus a civil penalty at least equal to the revenue loss. In cases of willful undervaluation, the penalty can be the domestic value of the merchandise. Goods get seized. Importers get flag records in ACE that subject all future entries to heightened scrutiny. The short-term savings of undervaluation are never worth the long-term cost of a CBP flag.

Misclassifying goods into a lower-rate chapter

Classifying a cotton-polyester blend jacket as Chapter 62 (woven, 10% MFN) when it's actually Chapter 61 (knitted, 12% MFN) because the importer looked at the fabric and guessed. Or classifying a smartphone case as Chapter 39 (plastics, 4% MFN) when CBP has ruled that specific design constitutes an article of Chapter 42 (leather accessories, 8% MFN). Misclassification is the most common CBP audit finding, and it generates duty demands going back five years. The standard for a "reasonable care" classification is that the importer used a competent broker, consulted the HTSUS, and applied the relevant CBP rulings and Explanatory Notes. Guessing does not meet the reasonable care standard. A broker's classification does.

Filing an invoice that does not separate freight from goods

US customs assesses duty on the transaction value of the goods, and international freight and insurance come out of that base — but only when your invoice identifies them as separate line items. A CIF or DDP invoice that buries $1,200 of freight inside a $7,200 total hands CBP a $7,200 dutiable base instead of a $6,000 one. At a 10% rate that is $120 of avoidable duty on every shipment, and it compounds across a year. This is not a broker error and not something you can argue your way out of afterwards: the valuation statute takes the invoice as written. Issue the commercial invoice FOB, or at minimum split freight and insurance into their own lines. It is a one-time change to a document template that pays for itself on the first container.

Not maintaining entry records for five years

CBP requires importers to retain all entry documentation — commercial invoice, packing list, bill of lading, entry summary (CBP Form 7501), broker's classification notes, and proof of duty payment — for five years from the date of entry. If CBP audits an entry from three years ago and you can't produce the records, the presumption is against you. The records don't need to be physical; digital copies are acceptable. But they need to exist and be retrievable. Most importers rely on their broker to maintain records, and for standard entries the broker usually does. But the legal obligation is on the importer of record, not the broker. If the broker goes out of business or deletes old records, you're still on the hook. Download your entry summaries annually and store them somewhere you control.

US Import Customs — Quick Answers to the Questions People Actually Search

What is the US de minimis threshold for imports?

There is no US de minimis threshold in effect. The Section 321 exemption, which had allowed shipments of $800 or less per person per day to enter free of duty, was suspended with effect from 29 August 2025 — for every country of origin, not just China. Duty is payable from the first dollar. The Supreme Court’s February 2026 decision against the IEEPA tariff authority did not restore it: the same day, E.O. 14388 moved the suspension onto different legal footing, and CBP’s June 2026 rulemaking wrote it up as indefinite. The only surviving relief is for genuine bona fide gifts and personal accompanied items valued at $100 or less. To see which thresholds still stand in other markets, use the De Minimis Checker.

How is US customs duty calculated?

Duty is calculated on the transaction value of the goods — the price actually paid or payable, plus packing, selling commissions, the value of any assist, and royalties paid as a condition of the sale. International freight and insurance are excluded when they are identified separately, which makes the US an FOB-type market rather than a CIF one. The formula is: customs value × MFN duty rate = customs duty. The MFN rate is assigned by the 10-digit HTSUS code for your product — rates range from 0% (electronics, pharmaceuticals) to 37.5% (certain footwear). If the goods are from China, Section 301 duties of 7.5% or 25% stack on top of the MFN rate. There is no federal VAT or GST on US imports — the duty line plus the MPF are the only federal charges. Run your numbers: Landed Cost Calculator.

What is the difference between Section 321 and formal entry?

The comparison no longer exists. Section 321 was the duty-free lane for shipments under $800, and it was suspended on 29 August 2025 — so there is nothing left for it to be an alternative to. What still matters is entry type. Shipments up to $2,500 may be filed on an informal entry: less paperwork, no customs bond, and a small fixed Merchandise Processing Fee. Above $2,500 formal entry is mandatory — CBP Form 3461 and 7501 filed by a broker in ACE, a bond, and the ad valorem MPF of 0.3464% (min $34.58, max $670.86). Duty is owed on both tracks; only the paperwork and the fee structure differ.

What is the Merchandise Processing Fee (MPF) on US imports?

The MPF is 0.3464% of the entered value on a formal entry, with a $34.58 minimum and a $670.86 maximum. Informal entries pay a small fixed MPF instead of the ad valorem one. The MPF is not a customs duty and is not waived by free trade agreements (except USMCA, KORUS, and a few others that specifically waive it). Section 301 duties do not affect the MPF calculation — it is based on the entered value, not the duty amount.

Do I need a customs broker to import into the US?

For a low-value shipment filed on an informal entry: not usually — the carrier files the entry electronically. For formal entries: technically the importer can self-file through ACE, but practically almost everyone uses a licensed customs broker. Broker fees run $75–200 per formal entry. The broker classifies goods under the correct HTSUS code, determines applicable duties (including Section 301 and AD/CVD), files the entry and entry summary in ACE, and remits duties. A broker’s classification is the single highest-value service on a standard entry — misclassification generates duty demands going back five years.

How much is US import duty from China?

It depends on the product's HTSUS chapter and which Section 301 List it falls under. The effective rate is MFN + Section 301. Industrial goods (machinery, chemicals, metals — Lists 1-3) face MFN (typically 2–5%) plus 25% Section 301 = 27–30% total. Consumer goods (apparel, footwear, furniture, electronics — List 4A) face MFN (5–16%) plus 7.5% Section 301 = 12.5–23.5% total. Smartphones and laptops qualify for 0% MFN under the ITA but still face 7.5% Section 301 = 7.5% total. Goods from Vietnam, India, and other non-China origins generally pay only the MFN rate with no Section 301 overlay. For a product-by-product breakdown, see the Section 301 Guide.

What is a customs bond and how much does it cost?

A customs bond is a financial guarantee to CBP that duties, taxes, and fees will be paid on a formal entry. Two types: single-entry bond (0.5–0.7% of entered value, ~$100 minimum) and continuous bond (covers all entries for a year, $50,000 minimum coverage, ~$250–500 annual premium). The continuous bond breaks even at roughly three formal entries per year. The bond premium is not the coverage amount — you pay a fraction of the bond amount to the surety company. The bond guarantees payment; you still pay the actual duties through your broker.

What is Type 86 entry?

Type 86 is the electronic entry type CBP created in 2019 to clear Section 321 de minimis shipments automatically — goods value of $800 or below, carrier or self-filer submits the data to ACE, CBP processes it with no human review unless the Automated Targeting System flags the shipment, and it clears in seconds with no bond, no broker and no MPF. It was the mechanism behind most cross-border e-commerce parcels entering the US from China. With the Section 321 exemption suspended since 29 August 2025, there is no duty-free lane left for it to serve.

Which Tool You Need — Depends on Your Shipment

The US import system is formulaic. Every charge follows a published rule. That means you can calculate the cost before the goods leave the factory. Match your situation to the right tool: