The growth of e-commerce cross border purchases continue and US consumers can purchase from overseas sites and get duty free delivery usually within a week or less.
A few facts about shipping e-commerce / online orders direct to the USA:
1. Section 321 duty free import is more accessible than ever
It is now a well known fact that most online orders shipped to the USA valued under US$800 can be imported duty fee. See section below on Section 321.
2. USPS remains the preferred last mile delivery solution but for how long?
Amazon is the undisputed leader in USA e-commerce transactions and their volumes are allowing for a growth in independent delivery agents. These agents or "DSP's" are now looking to join together to create an alternative delivery network. There are countless other projects driven by private equity but the USPS dominance in last mile delivery will likely continue over the next several years.
3. International sellers are increasingly shipping to the USA via Canada
Among the many ways to take advantage of duty free section 321 is to ship online orders to the USA via Canada. Goods can be shipped in-bond direct from a Canadian airfreight arrival or cleared and shipped from a warehouse. Goods from where Canada has a free trade agreement can be imported duty free to Canada, warehoused and- via section 321 cross border- shipped duty free to the US.- Goods made in Vietnam, for example, can be imported duty free to Canada in bulk. The individual orders can then be shipped to the USA and cleared via duty free section 321.
4. Sellers of higher value items may need a "part 128" specialist
While the US$800 duty free threshold covers the vast majority of imports, a full range of clearance options are needed to provide durable parcel supply chain solutions. It is possible to clear higher value items via express processes (C.F.R. Part 128), but such knowledge and capability is limited. Most customers brokers are not familiar with - or have access to - express and CFS processes.
5. Sellers should consider setting up their own direct shipping processes to the USA
The basics of setting up direct shipping is really quite simple: Airfreight, data and USPS. Airfreight capacity is expanding, data is ...well data, and using USPS can be accessed directly (Global Direct Entry) or via a reseller or partner (such as Pitney Bowes).
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. Goods can also be shipped via Canada for border import processes.
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.
