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What Section 321 Suspension Means for Fulfillment & Cross-Border Logistics

Steve Schlecht
Written by
Steve Schlecht
Published on
May 21, 2025
Table of Contents

As of 2025, a critical shift in U.S. customs enforcement is shaking up supply chains: Section 321 has been suspended for certain cross-border imports, especially those exploiting Mexico as a transshipment route. This major regulatory update is already reshaping how businesses handle Section 321 shipments and cross-border inventory.

For e-commerce brands, DTC retailers, and 3PL providers, this change marks a pivotal moment for logistics planning and tariff compliance.

What Is Section 321?

Section 321 of the U.S. Tariff Act allows for duty-free entry of goods valued under $800 per shipment per day. According to CPB, this provision was originally designed to simplify personal imports and low-value e-commerce shipments, this provision became a favorite strategy for importers trying to bypass steep tariffs, especially when routing goods through Mexico.

But not anymore.

What Changed in 2025?

The 2025 update to Section 321, backed by new enforcement policies under the Trump administration, suspends duty-free entry for shipments routed through Mexico that appear to exploit the “de minimis” loophole. These efforts are part of broader trade enforcement measures led by the U.S. Trade Representative.

The Section 321 suspension effectively ends transshipment through Mexico, impacting thousands of e-commerce shipments daily. As a result, importers can no longer rely on Section 321 entry methods through third countries as a workaround to U.S. tariffs.

Key takeaways:

  • Transshipment via Mexico is now a red flag. Tariff circumvention strategies are being heavily scrutinized.
  • Tariff enforcement has tightened. U.S. Customs and Border Protection (CBP) is increasing inspections, slowing down previously “fast-lane” shipments.
  • Many importers face unexpected duties and delays.

Industries Most Affected by the Section 321 Suspension

This crackdown has created ripple effects across multiple industries:

E-Commerce & DTC Brands

Companies importing directly from China and leveraging Section 321 through Mexico-based fulfillment centers are now at risk of tariff exposure and customs delays. Many Shopify, Amazon, and TikTok Shop sellers that once operated on thin margins are feeling the squeeze.

These changes are reshaping how brands approach Section 321 fulfillment models, forcing them to reevaluate routing strategies and compliance procedures.

3PLs That Used Border-Skip Models

Third-party logistics providers offering “nearshoring” through Mexico must now pivot their strategies or they risk falling behind.

Importers Relying on De Minimis

Businesses built around high-frequency, low-value shipments face compliance challenges as they can no longer rely on automated duty-free clearance.

Fulfillment & Logistics Challenges to Expect

As Section 321 enforcement tightens, businesses can expect to see:

  • Higher landed costs due to newly imposed tariffs
  • Customs clearance delays affecting delivery timelines
  • Complications in demand forecasting, especially for DTC brands
  • More scrutiny on fulfillment partners and routing transparency

The days of “invisible importing” through low-value parcel tricks are over.

Brands that once thrived on low-value, high-frequency Section 321 imports now face serious cost pressures and compliance risks.

How Buske Logistics Helps You Adapt

At Buske Logistics, we don’t rely on workaround strategies, we build resilient, Section 321-compliant and scalable supply chains that grow your business.

Here’s how we support businesses navigating Section 321 changes:

  • U.S.-based warehousing: Avoid border bottlenecks altogether by storing inventory domestically.
  • Strategic nationwide distribution: We help brands stay close to their customers and cut last-mile delays from the Midwest to the coasts.
  • Bonded warehousing & FTZ support: For goods still in transit or awaiting clearance, our bonded and foreign trade zone (FTZ) facilities offer tariff-friendly storage options.
  • End-to-end 3PL fulfillment: Whether you’re B2B, DTC, or omnichannel, we offer scalable solutions without the compliance headaches.

Planning for the Long Term: Post-321 Fulfillment Strategies

Looking ahead, smart brands and importers will adopt more durable fulfillment models:

  • Diversify sourcing locations – reduce dependence on China and Mexico
  • Reshore inventory – keep SKUs closer to U.S. consumers to reduce lead times
  • Partner with 3PLs offering bonded warehousing – like Buske, to maintain flexibility while staying compliant

Now is the time to move away from fragile import hacks and toward fulfillment systems that scale.

Final Thoughts on Section 321 Suspension

Section 321 Suspension has introduced serious challenges from increased tariffs and customs delays to fulfillment disruptions for e-commerce and cross-border brands. But it also presents an opportunity to rethink and strengthen your logistics strategy.

By reshoring inventory, diversifying supply chains, and partnering with a 3PL like Buske that offers bonded warehousing, FTZ solutions, and domestic fulfillment, your business can stay ahead of regulatory shifts and rising costs.

Ready to future-proof your fulfillment strategy?

Contact Buske Logistics today to explore Section 321-resilient solutions tailored to your business.

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