Businesses importing merchandise can find several advantages with section 321 entry. Not only does this save eCommerce companies money on shipping costs, but it also simplifies Customs and Border Protection (CBP) processing and approval.
However, there are certain rules to remember when using Section 321 entries. For instance, filing for Section 321 does not automatically make a shipment duty-free.
Lower Costs
Shipping goods across the border can be a lengthy, tedious and expensive process. But if your items qualify for Section 321 entry, you can expedite customs clearance and reduce import costs.
Section 321 entry is an opportunity for ecommerce businesses to import goods duty and tax-free into the United States, making it simpler to ship items that wouldn’t normally make economic sense to import. By saving on shipping expenses, your brand can pass savings onto customers in the form of lower prices.
Goods that are ineligible for de minimis shipment under Section 321 include alcohol, tobacco products and goods regulated by the FDA or USDA. They may not qualify if they are subject to import quotas or require federal excise tax payment. Furthermore, there are numerous other complexities and restrictions when importing low-value shipments under Section 321.
Simplified Process
Shipping to the United States can be costly and time-consuming, but section 321 entries help simplify the process. Not only do they save you money by avoiding taxes and duties, but they also eliminate delays caused by packages being held up at customs.
This section allows goods valued at $800 or less to be imported into the US without the need for formal entry and duty payment. This can be a huge boon for eCommerce businesses that need to import products regularly.
Section 321 entries can be made by either the owner or purchaser of a shipment, or by a customs broker acting on their behalf. Recently CBP tested an informal entry type under Section 321, known as Entry Type 86, that will enable importers to clear more low-value shipments without paying duties and taxes.
Time-Saving
eCommerce brands can benefit from section 321 entry as a cost-effective way to reduce expenses and streamline shipping processes. By saving money on import duties and taxes, these savings can be passed along to customers in the form of a lower price point.
Furthermore, you’ll be able to bypass the extensive paperwork associated with traditional imports. This saves time and keeps you competitive in the market.
Another significant advantage is that Section 321 entry relies on CBP’s Automated Commerce Environment (ACE), which was specifically created to expedite import clearance and compliance. ACE is a free portal that facilitates communication between trade companies, government agencies, and CBP.
However, there are some key restrictions to Section 321 entry. You can only file one shipment per day and the goods must not exceed $800 USD in value.
Compliance
As an eCommerce business, you may be searching for ways to reduce import expenses and boost shipping speed. One of the best solutions available is Section 321 entry.
If your low-value shipments fall under $800 USD, Section 321 can help alleviate the burden of duties and taxes. It allows goods to be shipped across the border without payment for necessary fees or taxes – leading to significant cost savings for your business.
However, you should be aware of the daily restriction placed on Section 321. Under this law, you cannot receive more than one shipment per day from one carrier or freight shipping partner.
To guarantee your business is in compliance with this provision, it’s essential to communicate regularly with your logistics team – including carriers, freight forwarders and customs brokers. Make sure your import/export filing is consistent and create an audit trail for audit purposes.
