It allowed individuals and businesses to import goods under $800 daily without paying tariffs. Many businesses exploited this by breaking large shipments into smaller ones.
 

• Originally intended for personal use (e.g., travelers bringing back purchases), it became a widely exploited loophole in e-commerce.
   

• Large brands and platforms bypassed import duties by shipping items individually to customers rather than in bulk, avoiding tariffs and customs processing fees.

Many Chinese and international sellers, including platforms like Temu, relied on Section 321 to import millions of packages daily to U.S. customers tariff-free.

• Instead of shipping directly from China, many companies stored goods in warehouses in Canada (Toronto, Vancouver) or Mexico (Tijuana) and then shipped to the U.S. under the $800 exemption.
   

• Businesses would send truckloads of goods to the border, but as long as each package was under $800, it didn’t require customs duties or formal entry processing.

Starting Tuesday 4 February 2025:
 

• All packages entering the U.S. will now require formal customs entry.
   

• Tariffs will be applied to every shipment, regardless of value.
   

• Importers must file additional paperwork, slowing down logistics.
   

• The cost of customs clearance could add $15-20 or more per package, making small shipments far less profitable.

1. Shift Fulfillment to U.S.-Based 3PLs
   Brands should consider moving inventory to U.S. warehouses to avoid new tariffs and customs delays.
   Partnering with reliable 3PL providers (like STOCKMATIC) can help smooth the transition.

2. ​​​​Adjust Pricing & Cost Structures
   Businesses may need to increase product prices or absorb some of the new costs to stay competitive.
   Finding cost-effective domestic suppliers may help reduce dependence on imports.

3. Prepare for Customs Paperwork & Delays
   Companies that continue international shipments must be ready for additional documentation and processing times.
   Hiring customs brokers or using software for compliance may help navigate the new rules efficiently.

The end of Section 321 marks a major shift in U.S. e-commerce logistics. Brands that depended on cheap, duty-free imports will now face higher costs, customs delays, and logistical challenges.

The key to survival?

1. ✅ Move inventory to U.S. warehouses

2. ✅ Optimize supply chain costs

3. ✅ Adapt pricing strategies

4. ✅ Streamline customs compliance

​

This change will reshape e-commerce, favoring businesses that can quickly adapt and secure domestic fulfillment solutions.