How Section 321 Benefits Online E-Commerce Businesses

International shipping costs can be one of the greatest expenses for an ecommerce brand. From customs duties and taxes, efficient logistics are essential if companies want to keep costs at a manageable level.

Merchants with knowledge are taking advantage of Section 321 to reduce import fees and shorten delivery times for their customers. Find out how this program can benefit your business:.

Expedited Customs Clearance

Reduced paperwork makes 321 filing a cost-saving tool for online merchants, particularly e-commerce businesses with multiple warehouses or fulfillment centers that import inventory in bulk into the US before moving it as needed to different locations – thus avoiding high duty taxes on each individual shipment.

Although formal entry filing may not be required for this shipment type, certain qualifying information must still be included on a bill of lading or shipping manifest, and merchandise that falls under FDA or USDA regulation should also be declared.

Additionally, this shipment type is limited to one transaction a day and this restriction could prevent online businesses from taking full advantage of this money-saving benefit in the long run. When properly implemented however, section 321 could result in lower taxes, faster delivery times and increased customer satisfaction – but for best results work with an experienced customs broker who understands these unique regulations.

Lower Taxes

Section 321 offers an effective means for online businesses to sidestep tariffs imposed during their trade war with China. As long as shipments value below the de minimis threshold of $800, no customs duties will be imposed by customs officials.

This can speed up cross-border shipping by cutting down on customs paperwork – an exciting development for ecommerce brands seeking to expand internationally without incurring costly import duties.

De minimis limits were recently raised from $200 to $800, enabling more shipments to pass duty-free through border security. It should be noted, however, that any shipment eligible under Section 321 must still go through an intensive inspection by Customs and Border Protection or other PGAs upon arriving in the US in order to meet US and PGA regulations. If in doubt whether your product meets those criteria or requires more help in terms of compliance with section 321, speak with a licensed customs consultant for guidance.

Competitive Pricing

As any e-commerce merchant knows, shipping logistics can be complex and can have a dramatic effect on profit. Tariffs added onto orders from overseas suppliers can substantially increase shipping costs for US merchants; thankfully, section 321 allows qualified goods to enter the US duty free, providing businesses with opportunities to pass along these savings to their customers.

E-commerce brands looking to enter or reduce product shipping costs in the US market will find this an incredible asset. Currently, the de minimis threshold stands at $800 USD; most products imported duty free can now be imported. One restriction would be that multiple shipments cannot be claimed within one day – working with an experienced customs advisor is highly advised in these instances.

To apply for Section 321, shippers must file an ACE shipment using BorderConnect’s ACE cSV Upload feature. To complete this submission, they will need to enter information such as their shipper details and product description; country of origin; value as well as recipient names and addresses for processing.

Increased Customer Satisfaction

Operating an e-commerce business can be an immense challenge, from ordering products across borders to managing global logistics and sales channels. But with Section 321 making importation into the US easier for e-commerce businesses resulting in lower taxes and wider margins.

E-commerce businesses can take advantage of expedited customs clearance processes to offer competitively priced goods to their customers at lightning speeds, without incurring delays that compromise customer satisfaction and cause negative reviews and customer churn.

Relying on Section 321 to lower import costs is advantageous, but businesses must remain compliant with US CBP rules and regulations in order to take full advantage of it. This involves not filing multiple Section 321 claims per day as well as keeping all involved in shipping logistics up-to-date regarding the status of these claims via ACE eManifest submissions – failure to do so could result in costly penalties and delays.