What is the New maximum value of goods that can be imported under Section 321?
If you’re a business owner looking to expand your e-commerce operation into the US market, you may have come across Section 321 clearance. This article will explain what Section 321 is and how it can help you eliminate duty costs.
What is Section 321 Customs Clearance?
Section 321 is a US Customs and Border Protection (CBP) clearance program that allows US consumers to import up to $800 worth of goods tax and duty-free. This exemption applies to shipments imported by an individual US consumer on a single day, and the retail value of the product must be $800 or lower.
Before February 2016, the maximum retail threshold for Section 321 was limited to products equal to or below $200. With the increase in the De Minimis rules from $200 to $800, the number of shipments entering the USA under section 321 clearance has increased exponentially. In fact, data from CBP confirms that every day, nearly 2 million shipments are released into the US under Section 321.
How to Eliminate Duty Costs with Section 321
If you’re shipping your inventory directly from China to a Canadian fulfillment center, like Windsor Fulfillment, you can take advantage of the Section 321 clearance program. Windsor Fulfillment’s Windsor-based distribution facility is only 15 minutes away from the US border, allowing them to send trucks to the USA on a daily basis, clearing US customs under Section 321 and then inducting packages with all the major US carriers like USPS, DHL, UPS & FedEX.
With Windsor Fulfillment’s same-day fulfillment process and proximity to the USA border, clients receive the same delivery services, costs, and transit times as a USA based fulfillment company with the added benefit of eliminating 100% of the duty cost.
The key to the success of Windsor Fulfillment’s Duty Elimination Program is Section 321 Customs Clearance. By taking advantage of this exemption, B2C sellers can eliminate 100% of their duty costs without sacrificing delivery time or costs.
The Section 321 Data Pilot Program
To ensure the smooth flow of cross-border shipments, it is imperative that Customs and Border Protection receives all the Section 321 shipment details prior to the shipment’s arrival at the border. To assist with this process, a Section 321 Data Pilot Program was initiated. The program tests the viability of allowing shippers to submit all of the required documentation electronically before the shipment’s arrival at the border.
Under the current Section 321 rules, CBP is requiring that companies submit information in advance of the shipment’s actual arrival at the border. This is necessary to be able to identify high-risk products and ensure they comply with US safety and security requirements.
Conclusion
In conclusion, Section 321 is a US Customs and Border Protection clearance program that allows US consumers to import up to $800 worth of goods tax and duty-free. By shipping your inventory directly from China to a Canadian fulfillment center like Windsor Fulfillment, and taking advantage of Section 321 clearance, B2C sellers can eliminate 100% of their duty costs without sacrificing delivery time or costs.
To ensure the smooth flow of cross-border shipments, it’s critical that government agencies scope out the most efficient methodology to allow for the smooth flow of goods across the border while strictly adhering to the rules. With the Section 321 Data Pilot Program, shippers can submit all of the required documentation electronically before the shipment’s arrival at the border, facilitating the customs clearance process.
If you’re a business owner looking to expand your e-commerce operation into the US market, we highly recommend taking advantage of the Section 321 clearance program to eliminate duty costs and streamline the customs clearance process.