August 29th 2025 marks the suspension of duty-free treatment for low-value shipments (valued at or under $800.00 USD & entered as a entry type 86) from all countries. CBP has published a 321 FAQ & Global Guidance Document with many helpful answers and instruction, below are some highlights.
Shipments over $800.00 USD that typically are entered using a broker will not be affected. Also, if you are already having shipments being handled by a broker in general, you will most likely opt for the additional shipments that are no longer eligible for de minimis to be entered as formal or informal entries by them.
However, if you wish to enter shipments using the USPS, you should know duty will be assessed one of two ways. You may NOT use both methods for one shipment. Additionally, starting February 28, 2026, only the ad valorem method may be used.
- Ad valorem duty: A duty equal to the effective IEEPA tariff for the country of origin of the product, based on the value of the product.
- Specific duty: A flat duty ranging depending on the effective IEEPA tariff rate applicable to the country of origin of the product. But if products from multiple Countries of Origin are contained within the package, only the highest IEEPA rate will be used to determine the specific duty rate.
- Countries with an effective IEEPA tariff rate of less than 16 percent: $80 per item;
- Countries with an effective IEEPA tariff rate between 16 and 25 percent
- (inclusive): $160 per item; and
- Countries with an effective IEEPA rate above 25 percent: $200 per item.
For all shipments, you must use this worksheet to declare the Country of Origin. A qualified party who is paying on your behalf may do this for you. Payment must be made no later than the 7th business day of the month following the month of entry (Made entry in January, payment must be made on the 7th business day of February).
Who may act as a Qualified Party?
Qualified Parties are companies working with or independently of a carrier, foreign postal
operator, or the United States Postal Service; Qualified parties must have a basic importation and entry bond sufficient to secure the imports, be able to remit payment of all duties and must be able to submit the worksheet with all required data elements listed. A qualified party is approved once a CBP Form 5106 has been processed, a basic importation bond is obtained, and both are on file with CBP.
So what if you don’t have a broker, bond, or otherwise do business CBP already?
First, you need to complete CBP form 5106. If you will be employing a broker, then you may be able to complete this form through them. Otherwise, the form may be emailed directly to CBP at bondquestions@cbp.dhs.gov, with the subject line: “New Bond IR#.” This form tells CBP who you or your business is and registers you as an entity that does business with them. If you need to start formally making entry for shipments (the result of eliminating Section 321), then that is considered doing business with CBP.
Next, you will need a bond. The entity listed on CBP form 5106 should match the bond. Again, this is something a broker may be able to assist you with setting up or you can contact your own surety company. You can refer to a list provided by CBP: U.S. Department of the Treasury, Bureau of the Fiscal Service website and research the List of Certified Surety Companies. Regardless, you will be providing information for a CBP form 301.
Lastly, you will need to confirm that CBP has the required data elements and that you can pay duty via Pay.gov. By August 29th, a worksheet and detailed instructions should be available on pay.gov. Verification should be in inquired and sent to CBP at: cbpdm@cbp.dhs.gov.
Pay.gov is a secure internet payment platform provided by the Department of the Treasury’s
Bureau of the Fiscal Service for payments to federal agencies using ACH debit transactions. To
request access:
- Create a Pay.gov account which requires utilizing ID.me or LOGIN.GOV as a login.
- Provide to IntlMailDutyHelp@cbp.dhs.gov your full name and email address used for the
pay.gov registration. - Your company will be notified by CBP when access is granted to the CBP International Mail Duty worksheet that is available via a Pay.gov worksheet.
If you currently have a Pay.gov account, please provide your full name and email address from your Pay.gov registration to IntlMailDutyHelp@cbp.dhs.gov to obtain access to the CBP International Mail Duty worksheet that is available via a Pay.gov form.
- Pay.gov provides the worksheet to fill out with the required information.
The first and second page of the CBP International Mail Duty worksheet must be submitted to CBPDM@cbp.dhs.gov and IntlMailDutyHelp@cbp.dhs.gov. - CBP reserves the right to audit the spreadsheet and individual package count through physical verification or electronically through ACE.
- If you are unable to pay via Pay.gov, please contact IntlMailDutyHelp@cbp.dhs.gov. Regardless
of how payment is made to CBP, page 1 of the worksheet is required to be filled out and
submitted via Pay.gov.
For bond policy questions, please reach out to Office of Trade – Trade Policy and Programs at
otbond@cbp.dhs.gov & for bond administration questions, please reach out to Office of Finance – Revenue Division at bondquestions@cbp.dhs.gov.
Some carriers have already suspended their incoming USPS shipments as the transition to this new system will most likely cause expected and unexpected issues. As of now, getting in contact with a broker ASAP and letting them handle your entries and payment is highly recommended as the best course of action to prevent delays and avoid compliance headaches.
