Traditional supply chains are being disrupted as e-commerce technologies and section 32 import processes come to dominate. Large bulk ocean shipping and inland transport to USA warehousing can be supplemented via efficient - duty free - high volume parcel import processing.
Shipping single orders directly from supplier
Using high volume e-commerce parcel clearance processes, e-commerce companies avoid the (retail or distributor) middleman and send directly to their American customers.
The higher unit costs associated with air/ parcel delivery is often more than offset by:
- A higher margin (retail vs wholesale)
- Lower inventory and warehousing costs
- Lower duty costs
Build best in class e-commerce shipping solutions to the USA via Canada: Contact Jet's Canadian Logistics Team.
Disclaimer: The information in Jet Worldwide online content, including this post, is for general information only.
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 and benefit from duty free entry.
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.
Types of Section 321 Entries:
There are four main point types of Section 321 entries:
- Express Consignment Clearance (ECCF) / CFR Part 128
- Cargo Clearance using express processes (Container Freight Station or CFS)
- Type 86 Section 321 via traditional broker interface (ACE)
- Canada USA Cross Border
High Volume Parcel Clearance
Traditional customs brokers are most often not familiar with express consignment regulations (Part 128 of the Code of Federal Regulations).
Traditional American customs brokers are used to clearing a large freight or container containing a couple commodities. E-commerce brokers are able to clear thousands of different commodities on a consolidated entry.
Jet helps those who are looking to diversity away from the traditional supply chain model and develop greater internal logistics expertise.
Watch our Video: Section 321 explained
Section 321 to the USA via Jet Worldwide
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