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 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:
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.
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.
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.
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).
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:
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
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:
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.
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.
info@jetworldwide.ca