Building Best in Class  Cross Border E-commerce to the USA

The United States Postal Service (USPS) is transitioning from reliance on few mega carriers and Amazon to selling direct to the "rest of the market." This includes international e-commerce retailers who are selling direct to the US.

In this post we review the following things to consider when shipping online e-commerce to the USA.

• Section 321 duty free import processes to the USA
• Multiple Ports and of Entry Types
• Common options for accessing USPS Delivery
• Developing a competitive advantage with in-house logistics expertise

USA Section 321 Import plus last mile delivery via USPS

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:

• Section 321 Express Consignment
• Section 321 Cargo (Container Freight Station / CFS)
• Section 321 type 86
• Section 321 Canada / USA cross border

USA Section 321 Express Consignment

Using an Express Consignment Clearance Facility / ECCF, retailers benefit from express handling and clearance. While it is important to build in the capability in case of a general customs slow down or work stoppage), this method is costly (over $1 US per consignment customs reimbursable fee). Goods cleared via ECCF are subject to Part 128 of the Code of Federal Regulations.

USA Section 321 Cargo/ CFS

Most facilities that have an ECCF also have access to cargo clearance. The processes are essentially the same but without the customs fee mentioned above. Shippers often mix and match use of CFS and ECCF to balance the need for lower costs with faster clearance.

USA Section 321 Type 86

Using traditional brokerage clearance systems, retailers can take advantage of type 86 entries. The format requires application of HS codes. This system is available for all forms of conveyance but seem to be subject to a high level of inspection and delay.

USA Section 321 Canada to USA Cross Border

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).

Multiple Ports of Entries and Multiple Entry Types

As e-commerce transactions move more directly to cross border sales, retailers need to develop more independence from "all inclusive" offers and build custom solutions. The upfront costs can be amortized over the future order flows and easily scaled. Jet assists companies by lending our extensive industry expertise and transparency.

Building a "direct order cross border" e-commerce solution:

• Air Freight to targeted gateway cities
• Partnering with local brokers and facilities
• Accessing USPS facilities

Durable e-commerce supply chain solutions involves hybrid solutions using multiple ports (for lowest cost final mile delivery), multiple section 321 entry types (explained above), and innovative solutions via Canada.

Volume growth: Enabling new delivery channels

• Volume growth has given carriers the necessary density to develop low cost postal options
• Volume growth enables e-commerce shippers to deal directly with USPS Global Direct Entry
• International e-commerce parcel logistics is a critical differentiator for international online merchants.
• Jet Worldwide consults with e-commerce merchants for implementation of best in class import processes.

Accessing USPS Options

The USPS is the Preferred Last Mile Delivery for the USA and often the best way to access their services is via one of their partners:

• Directly (for example via Global Direct Entry or online postal sites),
• Parcel Select via FedEx, UPS, DHL and other USPS partners
• Extra-terrestrial postal services such as Ascendia and BPost
• Postal consolidators such as Pitney Bowes

The method of entry is a sort of arbitrage where shippers simply look for the best deal for accessing the USPS. Jet assists major international retailers assess the feasibility of diverting volume from local postal options (Vietnam post, China Post, Royal Mail etc) to direct USPS options.

Good News For Cross Border E-Commerce Shippers

As the volumes grow, new options are available for cross border e-commerce. Jet Worldwide provides solutions to and from the USA and Canada for shipping online orders direct to Japan, China, European Union and the UK.

Jet Worldwide helps international e-commerce companies develop the necessary in-house expertise to explore how to develop best in class cross border logistics processes.

info@jetworldwide.ca