Clearance as easy as 321? Online sellers should become familiar with direct clearance options to the USA including express, cargo and type 86 Section 321 entries.
With recent regulatory changes, the importation of e-commerce parcels to the USA is undergoing radical change. Simply put: E-commerce companies are updating their supply chain to import individual orders under $800 directly from their Asian suppliers. They will bypass their existing ocean + road + distribution centre and ship direct from Asia to their customer.
Section 321 entry type in the USA allows for efficient high volume duty free parcel import to the United States. This can be accomplished via four entry types:
Contact Jet's logistics team for information on shipping to the USA via Canada
Disclaimer: The information in Jet Worldwide online content, including this post, is for general information only and is not intended to, constitute legal and/or tax advice. Producers, shippers, exporters, importers should confirm their processes with their customs brokers, carriers and regulating authorities. All liability with respect to actions taken or not taken based on the contents of this site are hereby expressly disclaimed. The content on this posting is provided “as is”; no representations are made that the content is error-free.
Using an Express Consignment Clearance Facility / ECCF, retailers benefit from express handling and clearance.
Most facilities that have an ECCF also have access to cargo clearance.
Using traditional brokerage clearance systems, retailers can take advantage of type 86 entries.
Many retailers are choosing to ship their goods via Canada to take advantage of truck border crossings to the USA. The goods can either be transported in bond direct from the arrival airport to the border or imported and warehoused in Canada. Many are choosing to import the goods to Canada that benefit from Canadian duty free entry under CPTPP (which Canada is a member of).
Beneath the headlines of trade wars is the reality of duty free access for most on-line purchases up to US$800.
The low value duty free threshold of $800 to the US is often referred to as a Section 321 entry type (see below). Most goods being imported to the USA are done so using this type of entry.
Clothing, fashion, household goods, electronics and other non-restricted goods valued under $800 can be imported duty free to the USA.
The goods can be entered using simplified 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 cleared prior to arrival) even during the peak holiday season.
Most e-commerce parcels valued under $800 USD can be imported directly to the USA without duty and tax!
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:
•Integrators 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)
•Contact our team to review parcel clearance possibilities to Canada and the US
The parcel clearance processes in other major airports - including DFW, IAH, ATL - are less clear. It is likely true that section 321 type processes exist at other ports but - if they exist - they would be exceptions somehow established with local CBP Port Directors. Similarly, there are no clear methods for processing e-commerce parcels under section 321 that are imported via ocean freight facilities.
There are credible rumours of some being able to clear section 321 parcels various ports of entry where the processes are not generally known. If true, the beneficiaries of these processes understandably prefer not to share the "how to."
No charge initial expert consultation: Contact info@jetworldwide.ca
Cross Border Parcel Logistics of Individual orders
Jet works with retailers who can take advantage of direct transport of individual orders directly from Asian suppliers. The new system involves duty free importing of potentially thousands of individual daily orders direct from Asian suppliers. A critical element of this cross border parcel logistics platform is being able to clear orders up to $800 duty free.
Jet Worldwide helps International e-commerce retailers develophigh volume USA parcel import processes using multiple ports of entry employing simplified duty free clearance processes.
Section 321 as easy as 1-2-3 ?
With the recent passing of a new law, it is possible to clear most items valued under $800 using a simplified entry process known as “Section 321.”
"Section 321” is a subcategory informal entry, allows the duty-free entry of a shipment valued less than $800 that is imported by one person on one day, with minimal attendant documentation requirements.
The term “Section 321” is derived from this provision’s statutory source, 19 U.S.C. § 1321(a)(2)(C).
Jet helps companies explore the variety of methods to clear orders up to $800 duty free using a simplified “section 321” process. We help companies uncover best practices using multi port express clearance (via an Express Consignment Clearance Facility - E.C.C.F) and/or lower cost cargo entry processes.
In addition to the "type 11" section 321, customs is testing a "type 86" section 321 entry. This new type of section 321 will allow greater use consolidated parcel entries, the ability to clear outside the ECCF environment and include other government agencies.
Opportunity or Challenge for US Retailers?
The new section 321 processes present both opportunities and challenges to retailers. New solutions require outside the box thinking as the traditional ecosystem - that includes US Customs Brokers - is being disrupted. We believe the opportunity to lower over all costs and react fast to market demands presents a great opportunity for retailers.
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