Section 321 and U.S. Customs: Elimination of Duties
You can completely remove your duty charges without affecting delivery times or costs by shipping your merchandise from outside of Canada directly to one of our distribution centres across the country, and having us then pick, pack, and ship your customer orders on a daily basis.
The Section 321 Customs Clearance, which permits US consumers to import up to $800 worth of products tax and tariff free, is essential to the program’s operation. TBX sends trucks to the USA on a daily basis, clearing US customs under Section 321 and then inducting parcels with all the main US carriers like USPS, DHL, UPS, and FedEX. This is due to TBX same-day fulfilment procedure and its proximity to the USA border (just 1.5 hours away).
The De Minimis amendments made in February 2016 are what gave rise to the method you can use to reduce your duty expenditures.
The De Minimis value criterion establishes the highest dollar amount of a shipment that can enter a nation tariff and tax free. The US increased the de minimis value from $200 to $800 in February 2016. When the sum reached $800, it was equal to the amount that US citizens may bring back into the country when flying there. As part of the issuance of section 321 exemptions, CBP (Customs and Border Protection) published the new de minimis value in August 2016.
Gains from Section 321
The largest and most evident advantage is that certain shipments are exempt from customs and taxes thanks to Section 321 Clearance. Shipments must be imported by a single US consumer on a single day and have a retail value of $800 or less in order to be eligible for the exemption.
The old Section 321 rules were in place before the De Minimis requirements were increased by $600 in February 2016, however they were only applicable to products with a maximum retail threshold of $200 or less. The number of shipments entering the USA with section 321 clearance has skyrocketed as a result of the phenomenal rise of online shopping and the increase in the de minimis of $800. In fact, Customs and Border Protection (CBP) statistics demonstrates that almost 2 million shipments are admitted into the US each day under Section 321 of the Immigration and Nationality Act.
In order to maintain the expedited customs clearance demanded by the private sector as well as any necessary enforcement measures for non-compliance, it is critical that Customs and Border Protection receive all Section 321 shipment details prior to the shipments arrival at the border. This is due to the enormous increase in shipments entering the USA under Section 321. A Section 321 Data Pilot Program was started to aid in this process.
Government organisations must choose the most effective technique to let the smooth flow of goods across the border while at the same time strict adherence to the laws, given the extremely fast-paced nature of the e-commerce industry.
In accordance with the current section 321 regulations, CBP is forcing businesses to provide information before the shipment actually arrives at the border. This is required in order to recognise high-risk products and make sure they meet US safety and security standards.
Regardless of the mode of entry into the United States, the Section 321 importing regulations are applicable. Carriers must specify the shipper’s name and address for Section 321 clearance into the United States.