Importing e-commerce parcels to the USA is a distinctly different process that are unfamiliar to most traditional logistics experts.
Jet Worldwide helps e-commerce sellers benefit from the advantages of cross border e-commerce processes.
What is a Section 321 Entry?
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.
Disclaimer: The information in this blog 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.
Section 321 Port of Entries
- Major air freight hubs including JFK, DFW, LAX and ORD
- Border Crossings from Vancouver, Toronto and Montreal
Section 321 Entry Types
Section 321 is a designated entry type for individual consignments valued under $800. The different types of section 321 include:
- Express consignment / ECCF: Goods imported using an ECCF are granted express clearance privileges and are subject to regulations outlined in Part 128 of the Code of Federal Regulations / CFR. Goods imported via express processes are subject to a per consignment fee mandated by customs to reimburse the cost for express processes.
- Cargo Clearance / CFS: Goods can be imported using express processes but without the per consignment fee (mentioned above). Goods are transferred to an approved Container Freight Station (CFS) and are usually cleared within 1 to 3 days of arrival.
- Type 86 Entry: For traditional brokerage processes that use automated connections to customs (ACE), section 321 type 86 can be used. The key difference is that HS codes are required for each item. An HS Code is not required for ECCF or CFS section 321 mentioned above.
- Canada/ USA Cross Border Clearance: This method is increasingly being used to take advantage of airlift to Canada and trucking cross border directly (usually) to a USPS facility.
Shipping parcels to the USA via international parcel post services
- Advantage: The Express Mail System - or EMS - has become much more competitive in recent years with improved tracking and transit times. Standard parcel services, such as e-packet - has become the preferred method for shipping to the USA.
- Disadvantage: Clearance of postal items has been unreliable with surge in volume and regulatory oversight - especially as it relates to security.
Shipping ecommerce parcels to the USA via FedEx, UPS
- Advantage: FedEx and UPS have the most extensive private delivery services through out the United States.
- Disadvantage: FedEx and UPS essentially control the US delivery market . As such, their services tend to be expensive and processes inflexible. But, they do offer access to the USPS via their postal divisions.
Shipping ecommerce parcels directly to the USA via Section 321 and USPS
- Advantage: Companies with high volume parcels to the USA are increasingly looking to set up their own "direct injection" import processes to the USA.
- Disadvantage: Minimum volumes are necessary and sending via direct injection to the USA.
Setting up direct section 321 import processes to the USA allows e-commerce merchants to gain control of their supply chain and offer a competitive advantage to their customers.
Jet Worldwide helps companies remain at the forefront of cross border e-commerce shipments to the USA and Europe. We recommend retailers have a hybrid of different options to best serve their customer's needs.
Having greater control and knowledge of the import processes is a critical advantage for international e-commerce merchants sending to the USA. Most e-commerce shipments valued under $800 US can be cleared duty free on using a "section 321 and ECCF" clearance.
Once the parcels to the USA are cleared at multiple ports of entry, shipments can be tendered for low cost ground delivery across the USA.
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