What Is the Form 321 Charity Code for Duty-Free Imports?

Many people searching for a “Form 321 charity code” are often looking for a specific document or code to label a shipment for duty-free importation into the United States. However, no such single form or universal code exists for this purpose. The term actually refers to a provision within the Tariff Act of 1930, specifically Section 321, which allows for what is known as a de minimis entry.

This rule permits goods under a certain value to enter the country without being subject to the usual duties and taxes. This process is not exclusive to charities but can be used for charitable donations if specific requirements are met. The provision was established to streamline trade and reduce the administrative burden on U.S. Customs and Border Protection (CBP) for low-value shipments. The focus is on the value and nature of the shipment, not a specific code entered on a form.

Qualifying for Charitable Duty-Free Shipment

To utilize the Section 321 provision for charitable purposes, the shipment must first meet the de minimis value threshold. Under current regulations, the total fair retail value of the goods in a single shipment cannot exceed $800. This limit applies to the value of the items in the country of origin. If the value is exceeded, the entire shipment becomes subject to standard duties and taxes. This rule applies to one shipment per person or organization per day.

Beyond the value limit, the nature of the donation and the recipient organization are closely examined. The shipment must be a “bona fide gift,” meaning it is given without any expectation of payment or commercial benefit. The items cannot be intended for resale by the receiving organization.

The recipient of the goods must be a recognized charitable, religious, or educational institution. While CBP does not mandate pre-approval, the receiving entity should be prepared to provide evidence of its status if requested. This is most commonly demonstrated by referencing the organization’s status as a 501(c)(3) public charity under the Internal Revenue Code.

Required Information for the Shipment

Before a charitable donation can be shipped, the sender must collect several key pieces of information. This data is what the shipping carrier will use to make the proper electronic declaration to CBP. The first requirement is the full legal name and address of both the shipper (the donor) and the recipient charitable organization. For the U.S.-based charity, this must include their Employer Identification Number (EIN).

A detailed and accurate description of every item within the shipment is also necessary. Vague descriptions like “donated goods” or “charity items” are insufficient and will likely lead to delays or rejection at the border. Each type of item must be listed separately, along with its specific quantity and its 10-digit Harmonized Tariff Schedule (HTSUS) classification.

Finally, the shipper must declare the fair retail value for each item in the currency of the country of origin. This value should reflect what the item would sell for in a retail environment in that country. The sum of these values must not exceed the applicable de minimis threshold.

The Customs Declaration and Shipment Process

The shipper does not directly interact with U.S. Customs and Border Protection to declare a charitable shipment. Instead, all the gathered information is provided to the chosen shipping carrier, such as FedEx, UPS, or DHL, or to a licensed customs broker. This information is typically entered into the carrier’s online shipping portal or included on a commercial invoice that accompanies the shipment. The commercial invoice serves as the primary declaration document for the goods.

When completing the shipping documentation, it is highly recommended to clearly mark the shipment’s purpose. Adding a statement such as “Charitable Donation – Not for Resale” directly on the commercial invoice and sometimes on the exterior of the package can be beneficial. This notation helps the carrier’s import specialists correctly identify the nature of the shipment and file the appropriate entry type with CBP.

Once the carrier has the necessary information, they will electronically submit it to CBP through the Automated Commercial Environment (ACE) system. This electronic manifest contains the details of the shipment, including the shipper, recipient, contents, and value. If the information is complete and the shipment meets the Section 321 criteria, CBP will electronically clear the package for entry into the U.S. without assessing duties.