Businesses that manufacture low-value goods overseas and use a third-party logistics (3PL) provider for US fulfillment can save money by filing Section 321 shipments. This will allow them to bring products into the country tax-free.
However, there are certain restrictions limiting this practice – for instance there is a daily limit of one shipment per company.
Logistics for international shipping involves many moving parts, with customs clearance at US borders being one of the more complicated aspects. Failure to abide by rules could result in significant delays that affect sales or even lead to customers seeking fulfillment elsewhere.
One way of overcoming such issues is using Section 321, which permits eCommerce stores to import low-value goods without incurring duties; however, value limits and single daily shipment restrictions still apply during this process.
Those seeking to leverage this strategy must ensure their logistics and 3PL partners work cohesively together and communicate clearly, as well as having proof of value documentation on hand in order to avoid unwitting fees or penalties. Working with a licensed customs consultant is key if companies wish to stay compliant with CBP regulations.
Streamlining the Supply Chain
Lower duty taxes and simplified paperwork associated with section 321 can make an enormous difference for eCommerce companies looking to optimize their import/shipping logistics and offer their customers lower prices and faster shipping times than their competitors.
Spending the time and effort required to submit all required shipment data accurately can save companies money. Any inaccuracies in their documentation can result in cargo holds or seizures of goods, which cause considerable delays and cost them dearly.
CBP’s 321 data pilot allows them to focus their inspection resources on carriers that submit accurate and complete information on their shipments, thus decreasing the need for border holds while increasing efficiency of CBP inspection resources.
Section 321 offers eCommerce professionals many advantages. Notably, it can reduce shipping costs by exempting low-value shipments from duties. Furthermore, this protocol allows goods entering the US without incurring customs tax and duties as long as they meet a de minimis threshold of $800 and are declared as 321 entries.
Avoiding Customs and Border Protection delays also allows your customers to experience faster delivery times.
Before relying on Section 321, however, there are a few key restrictions to take into account. You are only eligible to submit one 321 entry per day through ACE system and all of its relevant information. Furthermore, products subject to inspection or countervailing and anti-dumping duties won’t qualify; always consult a fulfillment expert first in order to make sure that your shipment fulfills all the criteria before using Section 321.
Finding New Import Opportunities
Companies using section 321 cbp can offer their customers lower prices and faster shipping times while adhering to customs procedures and avoiding delays and penalties. Businesses should work with an experienced customs broker in handling this type of importation to make the process go more smoothly.
Utilizing Section 321 allows businesses to save money on customs duties and fees, giving them an edge against competitors who don’t use this system. Furthermore, businesses that follow best practices for using Section 321 can ensure their shipments clear swiftly and efficiently, such as keeping all orders on one Bill of Lading and not declaring multiple shipments under Section 321 on one day.
Section 321 Entry Type 86 has seen rapid adoption due to the significant cost savings it can provide eCommerce companies. However, it is essential that this program be evaluated carefully to ensure all rules are followed; particularly regarding its one shipment limit per day.