Section 321 allows low-value eCommerce shipments to enter duty free into the US, streamlining customs clearance processes and helping reduce international shipping costs. If you want to know about section 321 entry requirements then this article will help you.
CBP is conducting a Data Pilot to assist them in better targeting these shipments, which will test if requiring more advanced information and engaging non-traditional partners can boost security while supporting cross-border commerce.
1. Goods must be less than $800 in value
No matter if you’re an eCommerce seller or 3PL with international fulfilment centres, Section 321 presents significant cost-cutting potential. This de minimis allowance for shipments under $800 allows customs clearance more quickly and efficiently, cutting logistics costs dramatically.
However, to comply with customs regulations and determine the value of goods accurately, an appropriate method of valuation must be chosen. One such approach is transaction value valuation which uses the purchase price paid by your customer in their country of origin as the basis.
The Trade Facilitation Act of 2015 increased the de minimis threshold from $800 to $1,000, enabling more merchandise to enter duty free into the US market. You may claim Section 321 only once daily – no splitting orders into multiple deliveries to meet this limit is allowed as this helps avoid businesses using it to sneak high-value goods into the country without going through proper processes for entry or examination.
2. Goods must be made in a country other than the U.S.
Implementing the appropriate logistics and administrative guidelines helps your company avoid unexpected fees and penalties, and makes importing goods from lower cost countries more viable to ship directly to customers.
Documents must be prepared that demonstrate the value and origin of the goods being shipped, usually submitted through Entry Type 86 on an eManifest. This typically includes information like shipper/shippee details, consignee contact info, value of goods sold, harmonized tariff schedule (HTS) number and country of origin.
De minimis threshold is currently set at $800 USD and not all goods qualify for Section 321. Cigarettes, cigars and alcohol do not meet this eligibility criterion as do goods subject to government regulation, harsh chemicals or products subject to Countervailing or Anti-Dumping duties – although restrictions continue to change and allow more goods qualify. By adhering to these strict rules in your shipping processes you can save on international fulfillment costs while speeding up cross-border shipments.
3. Goods must be made for resale in the U.S.
Since 2016, when the de minimis value for Section 321 shipments was raised, eCommerce businesses had greater flexibility when it came to importing their products without incurring duties. But due to more products qualifying as Section 321 imports, counterfeit goods may slip through.
To protect consumers, the government is now requiring additional advance information about certain Section 321 entries, such as its origin and intended use within the US market, as well as whether or not it satisfies compliance standards set by regulatory bodies like FDA.
Consultations with a Customs Broker who is aware of these regulations can help maximize your money-saving potential with Section 321. Jet Worldwide works with partners that offer Express Consignment Clearance Facilities (ECCFs) nationwide that offer Section 321 Entry Type 86 clearance, streamlining the process for shipping companies. ECCFs reduce international fulfillment costs by expediting delivery times, decreasing shipping delays, and expediting merchandise directly to its destination more quickly.
4. Goods must be made in a country with a free trade agreement with the U.S.
As long as your shipments meet these criteria, they can be cleared through customs using an entry type known as 321 Type 86 to bypass duty and tax payments and save both time and money for your ecommerce business.
Section 321 makes it more economically feasible to import products from countries which were once too costly, helping you reduce international shipping costs while offering your customers competitive pricing.
As much as Section 321 reduces ecommerce shipping costs, it still requires additional consideration and logistics when clearing through Customs. Jet has partnerships that can facilitate expedited processing for 321 entries at Express Consignment Clearance Facilities (ECCFs) so your shipments reach their destinations quicker while staying compliant with U.S. Customs and Border Protection regulations – contact us to learn how this could improve your ecommerce shipping processes!