Consumer spending continues to be strong with global consumers cross border e-commerce purchases are playing an increasingly important role for continued economic growth from Canada.
Consumer Spending Globally via Cross Border e-commerce
The global strength in consumer spending, which represents 60% of the global economy and…..it is rising thanks to cross border e-commerce. Canadian online merchants report that over 20% of their online traffic is from international sources.
The "consumer class" in China, for example, is ground by over 35 million consumers per year.
Taking advantage of duty free parcel clearance processes to the EU and UK require lower cost direct shipping solutions.
Note: The content of this post and all Jet Worldwide content is for general information only.
Cross Border Trade Direct to the UK and EU
Cross border e-commerce is experiencing historic growth. From Canada, the "rest of the world" is the greatest opportunity for growth beyond the USA.
At Jet Worldwide, when we define cross border e-commerce as: Direct Order Cross Border E-Commerce. Individual orders being purchased and shipped direct to the consumer in another country.
Open Market for Cross Border E-Commerce
Below the headlines of a trade wars, countries are opening up the reality of e-commerce imports. The USA leads with way with and $800 US duty free threshold and Europe and the UK have duty free thresholds of €150 and £135 (respectively) with new mechanisms to manage VAT Payment.
Read about IOSS and VAT payment to the EU and VAT payment for UK ecommerce imports
E-commerce Direct to Consumers and Businesses
Following the lead from consumers, businesses are procuring parts and supplies more directly via efficient e-commerce processes.
The Value In Value Added Tax
As e-commerce shippers are aware, the bigger cost on imports in most countries is not duty but taxes. Australia, Europe, the UK and other countries have developed tax regiments that collect tax from online sellers (see above) that provide certainty for online orders.
International consumers expect to happier to know and pay VAT upfront - rather than being charged VAT plus administrative fee by carriers. VAT payment to European Union and VAT prepayment requirement for the UK.
What is Section 321? Shipping e-commerce to the USA via Canada
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. Canadian e-commerce sales benefit from this access. International ecommerce companies are looking for Canada USA cross border solutions to supplement their logistics flows to North America.
Most goods cleared via a section 321 informal entry are imported under Part 128 of the Code of Federal Regulations (CFR). 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.
Port of Entry and Method of Transport and USA e-commerce parcels
The e-commerce express and cargo individual parcel clearance is currently available mostly via air freight hubs and gateway cities. Major express facilities and hubs with advanced "section 321" processes include:
- FedEx, UPS and DHL Express hubs
- Independent ECCF facilities in Los Angeles, Miami, New York and Chicago
- Cargo clearance (CFS) facilities at major airport gateway facilities
- Border crossing from Canada (airfreighted to Canada and trucked to the border) and Mexico
- Contact our team to review parcel clearance possibilities to Canada and the US
Global Parcel Clearance: One region at a time
The biggest reason for customs issues is having a complete understanding by country and region. Targeted selling to a country (such a Japan) or region (such as Europe) helps e-commerce seller build high volume parcel export and import processes.
Secure e-commerce by Respecting intellectual property and cultures
The biggest reason for customs oversight is to control what is being imported. Securing a parcel supply chain includes ensuring the integrity of parcels and data being presented to the regulatory authorities.
E-commerce shipping volume searching for a solution
As economies recognize the power of the consumer to their economies, they are allowing direct order cross border global e-commerce will continue to grow. New parcel supply chain solutions are needed for beyond traditional carriers. Jet Worldwide has innovative e-commerce shipping solutions direct from Canada.
