In working with many companies on international cross-border high volume parcel flows, find the lowest cost e-commerce delivery solution for companies sending to the USA. It is often less expensive to use a foreign post office than to send directly via USPS (using a USA gateway).
- The lowest cost delivery for parcels under 2 kg is via China Post
- The best China Post option is ePacket Service
See section below on shipping online orders TO China from the USA and Canada.
Disclaimer: The information in Jet Worldwide online content, including this post, is for general information only.
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The issue of below cost postal delivery from China came to the forefront in 2018. Americans, Canadian and European's complained about the cost of mailing a package from China being less than the cost to ship domestically.
The classification of China as a "developing country" was no longer true. Yet theUniversal Postal Union's (UPU) Postal Development kept China alongside "developing countries." As a result, China had lower "terminal dues." Terminal dues is a UPU term to describe the costs payable between post offices.
With importing countries (led by the US) insisting on changes, the Universal Postal Union held an "Extraordinary Congress" in 2019.
- The members voted down a proposal submitted by the United States and Canada, allowing each post office to set their own rates.
- The UPU passed a French-German compromise to allowing setting terminal dues of up to 70% of the domestic postage rate. Increases have been phasing in since 2021.
Diverting Ocean shipping to Shipping Online Order Direct
- Ocean shipping delays are impacting retailers - especially for US holiday season orders.
- Transit times from China to the USA have more than double to nearly three months in some cases.
- Industry experts do not expect the ocean shipping capacity will normalize until capacity comes on line in the next 2 years.
The increase cost of air versus ocean is offset by the duty free entry of section 321 and no domestic warehousing, lower inventory levels, and faster reaction to market trends.
Need USPS rates? Contact our team.
Understanding Section 321: Useful Video
There are several shipping options available for sending goods from China to the USA. The best option for you will depend on your specific needs and preferences, such as the type and size of the goods you are shipping, the speed of delivery you require, and your budget. Here are some common shipping options that you might consider:
- Air freight: This is the fastest shipping option with door to door integration with section 321 solutions and last mile delivery via USPS.
- Ocean freight: This is a slower but more economical option for shipping full container load (FCL) and less than container load (LCL).
- Commercial carriers such as FedEx, DHL, UPS and their partners.
- China post is generally the best option for shipping low volume of small shipments and personal items to the USA
The USA: The Most Open Market for Cross Border E-Commerce
Below the headlines of a trade war with China is the incredible reality of duty free access for most on-line purchases of $800 USD or less.
In fact, the higher general tariffs for Chinese goods are driving the growth in duty free parcel shipping.
The low value duty free threshold of $800 to the US is the Section 321 entry type. And a new "type 86" will expand the use of section 321 duty free entry to the USA.
The vast majority of goods from international e-commerce merchants importing to the USA:
- Clothing, fashion, household goods, electronics and other goods without restrictions with a value under $800 can import duty free to the USA.
- The goods enter using simpler clearance processes that do not require and an H.S. Code.
- US customs/ CBP offers express clearance processes that ensure timely clearance within hours of arrival at the port of entry (and often clear prior to arrival) even during the peak holiday season.
Put another way, most orders under $800 USD can be import directly to the USA without duty OR tax!
Following the lead from consumers, businesses are procuring parts and supplies more directly via efficient e-commerce processes.
SHIPPING AIRFREIGHT US from CHINA
Jet Worldwide helps companies send directly to the USA for duty free (Section 321) clearance of parcels through an Express Consignment Clearance Facility (ECCF) or Cargo (Container Freight Station). E-commerce shippers can now send direct to multiple ports across the USA for low cost final mile delivery via USPS ground.
Diverting Ocean shipping with New E-commerce Air Import
- Ocean shipping delays are impacting retailers - especially for US holiday season orders.
- Transit times from China to the USA have more than double to nearly three months in some cases.
- Industry experts do not expect the ocean shipping capacity will normalize until capacity comes on line in the next 2 years.
The increase cost of air versus ocean is offset by the duty free entry of section 321 and minimal domestic warehousing, lower inventory levels, and faster reaction to market trends.
Contact Jet's Canadian team for information on shipping to the USA via Canada.
As the United Postal Union adjusts pricing, most notably between China Post and USPS, international on line retailers are seeking solutions for sending e-commerce parcels directly to the USA. Advance Clearance processes allow for efficient duty free import processing for parcels sent to the USA.
Using advance high volume parcel import processing, retailers can import items duty free for direct delivery to their customers from their overseas suppliers. The USPS is offering Global Direct Entry and other solutions for international shippers shipping online orders to the USA.
Shippers can now produce USPS labels directly and send their shipments directly to the USPS via Express Consignment (ECCF) or CFS duty free Section 321 entry.
With new United Postal Union (UPU) terminal dues structure, companies are looking for ways to send directly to the USA themselves rather than via China Post. Using ECCF's at multiple ports of entry (LAX, JFK / NY, ORD, Chicago), shippers can benefit from faster transit times and low cost ground shipping via USPS, UPS, FedEx or America's regional carriers.
What is Section 321?
US Customs allows most individual orders less than $800 USD to import duty free into the USA. This entry type is known as a Section 321 Informal Entry (see below). Using this entry type, importers can consolidate all their qualifying orders under one entry without H.S. Codes and benefit from duty free entry.
Contact our team to discuss which method of parcel import is best for your company.
Why was sending from China so cheap?
The United States Postal Service (USPS) charges to China Post are within the United Postal Union rules.
With its 192 member countries, the UPU is the primary forum for cooperation between postal sector players. The mantra of the UPU includes a mission to ensure universal service everywhere within a domestic postal network.
Note: The need for "universal service" for letters is long since over.
The rates between postal authorities refer to “terminal dues.” In general, developing countries - or “transitional countries” pay lower terminal dues.
UPU “terminal dues” apply only to letters. However, the definition of letters include “bulky letters” or packets which are the majority of Asian e-commerce parcels.
The UPU estimates that 80% of “mail items” of e-commerce weight less than 2 kg and process in letter post streams. Countries with the UPU designationas “transitional countries” enjoy disproportionately low terminal fees.
New UPU Terminal Dues for parcels have significant increases since 2020. The increase in in cost to is the reason e-commerce merchants are looking for direct ECCF, CFS section 321 processes for Global Direct Entry to the USA.
Jet helps retailers who are seeking to adapt their logistics to include direct from supplier to customer: We specialize in helping retailer develop high volume e-commerce parcel import for thousands of individual orders.
Read our blog on importing e-commerce parcels via a express consignment (ECCF) or via Cargo (CFS).
Low-cost postal pricing continues to be a cause for controversy:
The delivery rate to transitional countries is often often below cost of the destination postal authority.
BUT... low cost postal pricing continues to help grow postal volumes:
- The large infrastructure left bare by mail volumes has found a new purpose in delivering small parcels
- The financial struggles of postal authorities would have been insurmountable with out the benefit of e-commerce parcels.
The USPS ePacket... costs a little bit more but with tracking
Being bound by the UPU rules relate to “mail / small packets”, the USPS developed a ePacket. Proviing tracking and better service but at a higher rate than the preferential terminal fee. Although the ePacket is outside the jurisdiction of UPS rules the preferential UPU preferential terminal fees matter.
The USPS refuses to disclose their ePacket pricing claiming it is "commercially sensitive" information.
Countries that have ePacket agreements with USPS include China, Hong Kong and Korea Post.
Merchants selecting the ePacket through Hong Kong Post are able to ship small packages weighing up to two kilograms (4.4 pounds) using co-brand shipping labels. Upon arrival in the United States, these packages receive First-Class Mail service with Delivery Confirmation service.
ePacket, e-Bay and Amazon
Amazon's rival, eBay, is benefiting tremendously from ePacket deals. Cross border trade is extremely lucrative for eBay and its (former) payment processing subsidiary PayPal. In fact, eBay has struck trilateral deals with the USPS and postal services in Asian countries including China, Hong Kong, and Singapore.
Nearly half of eBay sellers in China are using the ePacket service to ship to the U.S., with over 80% delivery in five to 10 days. The service offers up to a 50% discount comparing with comparable services.
Amazon, has been a vocal critic of the low cost ePacket service as it affects their US sellers.
Shipping E-commerce Orders direct TO China from the USA and Canada
Online sellers are finding incredible opportunities in serving Chinese online orders. Contact Jet's team for updates on shipping your online orders direct to China.
Check out our industry leading e-commerce blog on shipping to the USA: USA Express Consignment Clearance Facilities for sending e-commerce parcels import to the USA.
Note: The official term for an ECCF is Express consignment carrier facility but often the terms "Express Consignment Clearance Facility" and "Express Consignment Courier Facility" are interchangeable when referring to an ECCF.
Duty free Parcel clearance to the USA
With regulatory changes in March of 2016, it is possible to import many items up to $800 USD duty free. Via express consignment clearance processes, shippers to the USA can take advantage of section 321 entry for efficient consolidated clearance of parcels.
Sending Direct to the USA
Shippers of ePackets are have interest in establishing direct parcel import processes from China. Jet can help American, Chinese and European retailers set up parcel logistics processes for duty free imports. Having direct access via high volume parcel import processes gives retailers / e-tailers more control and more consistent delivery times.
Jet Worldwide can help you develop secure parcel import solutions to the USA via Express Consignment Clearance Facilities (ECCF's) and Container Freight Stations (CFS).
New type 86 entries are expanding the ability to clear under section 321 provisions to the US
Using Section 321 clearances via Express Consignment Carrier Facilities (ECCF's) allow cross border e-commerce merchants to bypass the traditional logistics flow. Using efficient high volume parcel clearance processes, American retailers can react faster to market trends and take advantage of duty free processes.
- Section 321 Entry Types:
- Section 321 Express Consignment
- Section 321 Container Freight Station CFS
- Section 321 Type 86 / ACE via auto. Broker Interface
- Section 321 cross border via Canada to USA (contact Jet's team)
Conclusion
ePacket will continue to define low cost e-commerce shipping from Asia but significant cost increases will continue. E-commerce merchants should develop alternative parcel flows that include the integrators and direct injection into high volume target countries.
With the increase in the low value threshold to the USA (section 321 de minimis) to $800, e-commerce companies are seeking duty free parcel import solutions to the USA. Jet provides express consignment clearance (via our ECCF's) across the USA.
Jet Worldwide’s recommendations for high volume parcel flows from Asia to the USA:
- Continue to take advantage of the ePacket pricing from the USPS for low weight parcels.
- Develop alternative high volume parcel flows into the USA for direct injection for heavier parcels and to protect against clearance and service delays of high volume postal networks.
