When it comes to shipping goods across the border, there are a lot of roadblocks to overcome. Fortunately, section 321 entry requirements can make the process easier and save your business money.
Goods valued under $800 USD can enter the US duty and tax-free under this provision. This is especially helpful for eCommerce businesses, as they often sell items that fall within this value range.
1. Value of Goods
Section 321 allows businesses to import low-value merchandise with a de minimis value of $800 and clear them duty-free. This can save eCommerce companies money on import fees and taxes.
This provision also speeds up the clearance process and reduces the amount of paperwork that is required. However, there are some limitations that businesses should keep in mind.
For example, Section 321 entry requirements require that goods be clearly marked with the retail value of each shipment and the recipient’s name and address. This can be difficult for eCommerce companies to do on their own, so it’s best to work with a customs broker who can help with this.
2. Country of Origin
Importing goods under Section 321 entry requirements can be a great way for businesses to save money on international shipping costs. It can also help your brand to grow and become competitive in the U.S. market, which is 10x larger than Canada’s.
The savings a business can make from importing goods under section 321 entry requirements can be a significant source of revenue and profit. It also allows brands to offer their customers more competitive pricing and faster shipping.
The US Customs and Border Protection (CBP) has rolled out a pilot program that allows online marketplaces to submit shipment-level information directly to CBP in advance of arrival. This information will help the agency identify low-value shipments that may be eligible for release under Section 321.
3. Country of Manufacture
Section 321 allows goods to be imported duty-free if they are valued at $800 or less. This international trade regulation is designed to benefit global e-commerce and manufacturing without compromising customs and border protection.
While many goods are eligible, a few restrictions exist. These include alcoholic beverages, cigars, cigarettes, harsh chemicals and products that are under government regulation.
Those items that fall under these categories should be declared in the declaration to ensure compliance with the de minimis value. If you’re unsure about the restrictions, speak with an experienced customs consultant.
CBP recently introduced a test of an informal entry type known as “Type 86.” This entry type supports release from manifest and filing to increase efficiency in low-value Section 321 shipments. However, it’s important to remember that these shipments still need to be declared for any merchandise processing fees or taxes owed to partner government agencies like the FDA or USDA.
4. Number of Shipments Per Day
Section 321 entry requirements provide an opportunity for businesses to import low-value goods duty free into the United States. This can help ecommerce companies to cut costs, reduce shipping time and eliminate delays in customs clearance.
Using this provision, businesses can respond to fluctuations in demand caused by e-commerce sales without sacrificing inventory levels or product quality. However, it is important to note that there are some restrictions that must be followed in order to use Section 321.
First, shipments must have a value of $800 or less and be filed on an ACE Manifest. They must also not be one of several lots covered by a single contract or order, which would exceed the value of $800.
5. Formal Entry or Informal Entry
Section 321 allows for the importation of goods with a value of $800 or less into the United States for personal use. Businesses and individuals that have low-value shipments can take advantage of this process to avoid paying customs duties and taxes on their importing shipments.
For example, if you’re an eCommerce business that regularly ships inventory from China to the U.S., Section 321 can help you save significant money on importing expenses. This can be a big boon for businesses that are looking to expand into the US market, which is 10x larger than Canada’s.
There are two types of entry under Section 321 – formal entry and informal entry. Formal entries are considered high-value shipments and require a surety bond. Informal entries are low-value shipments that don’t require a bond and can be entered at any commercial port.