---
title: CBP Reschedules ACE Automation of the $800 De Minimis Threshold to January 2025
description: CBP delayed ACE automation for shipments exceeding the $800 de minimis threshold as the U.S. government cracks down on e-commerce abuses. Read more here.
image: https://blog.coleintl.com/hubfs/Images/Trade%20News%20pictures/U.S.%20Customs%20(2).png
---
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# CBP Reschedules ACE Automation of the $800 De Minimis Threshold to January 2025
Trade Update: September 16,2024
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CBP Reschedules ACE Automation of the $800 De Minimis Threshold to January 2025
6:12
**By postponing deployment, CBP will be able to implement the automated rejection of de minimis shipments above $800 without disrupting the flow of trade.**
The U.S. Customs and Border Protection (CBP) has [delayed the deployment](https://content.govdelivery.com/bulletins/gd/USDHSCBP-3b2d2a5?wgt_ref=USDHSCBP_WIDGET_2) of the automated rejection feature for shipments exceeding the $800 de minimis threshold under [19 USC 1321](https://www.law.cornell.edu/uscode/text/19/1321), initially scheduled for September 28, 2024.
Concerns from the trade community about a smooth transition prompted this delay. The deployment has now been rescheduled for January 11, 2025, where a warning flag for filers on the ACE automation will be applied when a shipment exceeds the $800 limit.
CBP will be rolling out full automation of de minimis rejections after the warning flag system is in place. The Agency will likely announce a formal timeline for this transition, with a minimum 30-day lead time from deploying the warning flag system.
This will provide importers and brokers ample time to adjust shipments before automatic rejections are enforced.
Although CBP has been focusing on enforcing Section 321 shipments, e-commerce platforms have exploited this threshold by breaking larger shipments into smaller parcels. This has sparked concerns about trade compliance, intellectual property rights, and security risks.
In response to these abuses, the Biden-Harris Administration has recently taken steps to prevent foreign platforms, particularly Chinese e-commerce giants like SHEIN and Temu, from abusing the de minimis threshold exemption.
## **Preparing for the new warning system**
Starting January 2025, importers and brokers must closely monitor their shipments for compliance with the $800 threshold.
The warning flag will serve as an alert to adjust documentation or reclassify shipments before they risk being rejected.
Importers must ensure all data, such as declared values and HTS codes, is accurate and compliant with CBP guidelines.
U.S. importers are also advised to take the following measures to prevent interruptions to their operations:
- Provide accurate declarations of value and shipment contents
- Regularly review CBP guidelines for any updates on Section 321 enforcement
- Stay informed about warning flags and enforcement actions related to de minimis shipments
- Work with a customs broker to simplify the entry process and ensure compliance
## **CBP’s increased focus on Section 321 shipments**
Section 321 of the U.S. Tariff Act of 1930 allows for the informal entry of low-value shipments. Since 2016, this has been capped at $800, making these shipments duty- and tax-free, in addition to expediting their clearance.
The $800 de minimis threshold is the highest globally, with imports considered on a per-person/per-day basis. In response to the growing e-commerce market, CBP introduced Entry Type 86 in 2019 to facilitate the clearance of e-commerce shipments via electronic submissions.
While Section 321 entries provide an avenue for faster imports, the rise of e-commerce and the large volume of incoming small packages has made enforcement challenging for the CBP.
CBP is particularly concerned about the potential for illicit goods, such as counterfeit products or even dangerous materials, to enter the U.S. under the guise of small, informal shipments. Intellectual property violations, especially counterfeit goods, also pose a risk as they enter the country as de minimis shipments.
## **Chinese e-commerce platforms exploiting the de minimis threshold**
The spotlight on de minimis is primarily driven by the explosive growth of e-commerce platforms like SHEIN and Temu.
These e-commerce platforms take advantage of the de minimis threshold rule by segmenting higher-value shipments into smaller parcels under the $800 limit when shipping them to the U.S. These low-value shipments, which CBP is now scrutinizing, represent a significant portion of U.S. e-commerce imports.
A 2023 House report revealed that SHEIN and Temu, who mainly source their goods from China, [sent 600,000 packages daily](https://www.americanmanufacturing.org/blog/house-democrats-want-president-biden-to-take-action-on-trade-loophole-exploited-by-shein-and-temu/) to the U.S. while evading inspections and import duties. They are also accused of using supply chains potentially [linked to forced labour](https://blog.coleintl.com/tradenews/the-us-adds-5-more-chinese-companies-to-the-uyghur-forced-labour-list).
This has sparked concerns and debates among lawmakers, businesses, and customs officials about security, trade compliance, and intellectual property rights.
Additionally, concerns over lost revenue, potential unfair competition with domestic businesses, and the influx of goods that may evade strict regulatory oversight have been raised.
## **The U.S. cracks down on de minimis threshold abuses**
In response to these issues, the Biden-Harris Administration has introduced a series of actions to prevent foreign e-commerce platforms from abusing the de minimis exemption.
The White House [recently announced plans](https://www.whitehouse.gov/briefing-room/statements-releases/2024/09/13/fact-sheet-biden-harris-administration-announces-new-actions-to-protect-american-consumers-workers-and-businesses-by-cracking-down-on-de-minimis-shipments-with-unsafe-unfairly-traded-products/) to exclude shipments containing products subject to Sections 201, 301, and 232 tariffs from the de minimis exemption. These shipments, including 70% of textile and apparel imports from China, will no longer be able to evade duties.
Moreover, the Biden-Harris Administration has called for the following measures:
- **Strengthening information collection requirements**: Additional data, such as the 10-digit tariff classification number, will be required.
- **Requiring Certificates of Compliance (CoC)**: Consumer products under de minimis will need CoCs to meet U.S. health and safety standards.
- **Increasing enforcement against illicit goods**: This measure includes blocking counterfeit items and products that violate intellectual property rights.
While the administration is taking immediate executive action, it has also urged Congress to pass comprehensive reforms to de minimis exemptions.
**Please reach out to one of** [**our trade professionals**](https://www.coleintl.com/contact-us) **for more information about the upcoming changes and how to prepare for them.**
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