High volume parcel import processes are increasingly being demanded by merchants wishing to send their e-commerce orders directly to the USA. Jet assists online retailers with higher volume to develop direct airfreight and duty free import processes to ensure lowest costs and secure time frames.
Importing parcels to the USA is a distinctly different process that many logistics experts are not aware of. The vast majority of customs brokers are familiar with the traditional clearance model of a single customs entry for a large shipment freight shipment. The successful importing of parcels to the USA involves being able to handle a multitude of shipments containing various commodities that are addressed to different consignees.
Our standard advise for all companies seeking to import parcels to the USA is to first look at the postal solutions directly from their country. Especially for companies with low volume parcels to the USA, postal delivery if often the best solution.
Essentially, parcel delivery to the USA can be used using the following basic methods:
1. Utilizing postal delivery from your country's post office
2. Sending with an American integrators FedEx or UPS
3. Sending direct to USA and then via low cost domestic delivery networks/ USPS
What is Section 321?
US Customs allows most individual orders valued under $800 USD to be entered and cleared duty free into the USA. This entry type is known as a Section 321 Informal Entry. Using this entry type, importers can consolidate all their qualifying orders under one entry without H.S. Codes (if using an ECCF or CFS) and benefit from duty free entry.
Read about potential new regulations for Section 321 entries
Most goods cleared via a section 321 informal entry are imported under Part 128 of the Code of Federal Regulations (CFR). As such, they are imported to facilities with port codes that define them as Express facilities or ECCF's. Many express operators are also able to clear via freight facilities (with section 321 processes) known as a Container Freight Station or CFS.
For importers who have H.S. codes, it may be best to use a Section 321 "type 86" entry. Using this entry type, goods can be imported via traditional methods using the Automated Broker Interface or ABI system.
Option 1: Sending parcels to the USA via international parcel post services
Advantage: Prices via local postal options often offer the lowest cost for shipping small parcels.
Disadvantage: The United Postal Union has increased the cost for international mail packets and the huge growth in volume is causing clearance delays.
Option 2: Shipping international online orders via FedEx or UPS
Advantage: FedEx and UPS have the most extensive private delivery services through out North America and -along with DHL - offer reliable international service.
Disadvantage: The unit costs for the integrated carriers can be significant particularly as it relates to surcharges (which are much less negotiable even for larger volume shippers).
Alternatively, FedEx, UPS and DHL offer access to the USPS via their postal subsidiaries.
Option 3: Send parcels directly to the USA to access domestic networks
Advantage: Obtain more control of the shipping and clearance process and have access to low cost domestic deliveries. Shippers can better customize shipping options to include a mix of Section 321 express clearance (ECCF) , cargo clearance (CFS and Type 86) at targeted ports of entry for most efficient routing, and a host of other customized options.
Disadvantage: Minimum volumes are necessary and there is a cost of setting up the processes.
The process of setting up direct importing to the USA are a fundamental choice for large volume e-commerce shippers. Deploying multiple processes are necessary to secure direct order parcel import supply chains and to be able to expand the shipping options for buyers.
Jet Worldwide provides unbiased "inside information" on the best practices for high volume parcel import processes. Whether you wish to have advice on choosing the best ECCF facilities - or to develop your own ECCF facility - Jet Worldwide can assist in getting you the information you require. Contact our team for a confidential review.
For sending large volume parcel flows to the USA, a combination of three options is necessary to ensure uninterrupted delivery flows. The growth of e-commerce deliveries to the USA are opening up new options - such as sending directly to the USA - that are dependent upon high volume parcels to the USA to be cost effective.
As I have written about in previous blogs, the best way to clear parcels imported to the USA is to use an Express Consignment Clearance Facility (ECCF). This can also be combined with non-express container freight stations. Using an ECCF, companies who send parcels to the USA can usually have their parcels injected into a domestic delivery system the same day as arrival.
Having greater control and knowledge of the import processes is a critical advantage for international e-commerce companies sending to the USA. Many fulfillment centres in Asia can process shipments at a lower cost of US based fulfillment centres and most shipments valued under $800 can be cleared duty free on a simplified “manifest submission.” This type of entry is often referred to as a Section 321.
Above $800 but below $2,500, shipments can also be cleared using a consolidated entry but duty fees will be applied. Although, in most cases, the duty charges are not substantial and - anyway - should be known in advance by the e-commerce company before pricing the product online.
Once the parcels to the USA are cleared, shipments can be tendered to the delivery agent such as the US post office, parcel post delivery specialists, integrators and regional delivery services.
Note: Information in this post and all Jet Worldwide content is for general information only.
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