Definition
Section 321 De Minimis Exemption – A provision of the U.S. Tariff Act of 1930 that let low-value parcels (historically under $800) enter the United States duty-free and with minimal customs paperwork, so long as one person's shipments stayed under that threshold in a single day. Cross-border e-commerce platforms shipping directly from overseas manufacturers to individual U.S. buyers - most notably Temu and Shein - built their pricing model around it. The exemption ceased to apply to imports from China and Hong Kong effective May 2, 2025, and was eliminated for imports from all countries effective August 29, 2025, materially raising the landed cost of goods that previously entered duty-free. Found In: Risk Factors, MD&A (cost of revenue discussion)