The extensive customs process can take a huge toll on business operations. Fortunately, CBP has put in place a program that can help businesses save time and money while avoiding unnecessary fees on imports.
Section 321 enables goods valued below $800 to enter the US duty-free. Using this option can help businesses save thousands in profit and avoid costly fees.
Cost-effectiveness
Importing goods into the United States can be a costly process for businesses, particularly international shipments. However, shipping logistics can be optimized to save money and ensure quick deliveries to customers.
Using a customs broker to ship your products through section 321 can help your business save money by eliminating duties and taxes, as well as speed up your shipment process. The savings also translate into a better price passed on to your customers.
If you’re considering using section 321 for your next shipment, make sure that all your paperwork is in order. Providing accurate information will save you time and reduce the chance of having your shipment held up at customs.
It is also important to note that Section 321 comes with a daily restriction, limiting the number of shipments that a company can claim per day. This one-shipment-per-day restriction is vital to ensure that your shipments do not exceed the $800 de minimis value.
Time-saving
Section 321 is an important part of the ecommerce landscape and can help your business save significant time and money. It allows you to send goods across the border with significantly reduced costs and faster shipping times.
Unlike other imports, which are typically processed manually, shipments under this program are usually handled through CBP’s Automated Commerce Environment (ACE). This can drastically reduce paperwork and speed up customs clearance for your business.
In addition to speeding up the process, this can save you a lot of money on import duties and taxes as well. Moreover, your business may even be able to avoid certain Section 301 duties if your goods meet the de minimis value.
To ensure that your shipments are viewed as low-value imports, make sure you are accurately providing the appropriate information to CBP for each shipment. This can reduce the risk of cargo holds and seizures while allowing your business to expand in new markets.
Compliance
If you’re a business owner and you’re importing merchandise for your eCommerce store, it’s important to know the compliance requirements of section 321 cbp. These regulations can help you save a substantial amount of money and avoid delays at customs.
For a variety of goods, this exemption allows you to enter them into the United States without paying duties and taxes. However, there are some restrictions to this exemption.
In addition, there’s a limit on how many shipments a company can make in a single day. Making more than one shipment per day can result in severe penalties, which can be costly for a small business.
In September, the CBP rolled out a test for a new informal entry type under section 321 called “Entry Type 86.” This new option will provide a faster and less complex entry process for low-value shipments. This can save a significant amount of time and money for businesses who use it frequently.
Security
The Section 321 program is a public-private partnership designed to mitigate risk and expedite legitimate low value e-commerce shipments. Under Section 321, small packages valued at $800 or less can enter the United States tax and duty free.
However, this increased opportunity to import goods at a lower cost has tempted some e-commerce stores to take advantage of this policy. This posed a risk to the country’s national interest and revenue.
To protect the nation, CBP requires a foreign seller to present their identity in advance of importing a shipment. This helps the agency identify duty evasions, and other abuses, before a shipment is released.
This information is essential in helping CBP target and interdict high-risk shipments before they enter the U.S. It also helps to better position the agency to detect and respond to counterfeit products, consumer safety violations, and other threats.
In response to this increasing need, CBP launched the Section 321 Data Pilot in 2018. This voluntary test allows participants to transmit certain advance data elements related to de minimis shipments to CBP before the goods arrive. This information helped CBP assess risk, expedite clearances, and reduce the number of CBP holds.
