Practice efficient shipping logistics to ensure that your product will reach its destination on schedule, especially when shipping internationally, where there may be many laws and restrictions to keep in mind.
Customs City Global Solutions Inc’s Section 321 CBP system can save time by eliminating repeated data entry and double entry which often leads to errors.
Tax-Free Imports
Section 321 is a new customs entry type which enables low-value shipments to clear US customs duty and tax free. Ecommerce retailers that ship from domestic warehouses or fulfillment centers may take advantage of this process to save both time and money; however, certain rules must be observed in order to meet all the necessary criteria.
In February 2016, the de minimis value threshold was raised from $200 to $800 in an effort to enhance visibility of lower-value imports into the US and speed up clearance processes; however, most ecommerce importers cannot utilize this tool due to a one shipment-per-day limit under Section 321.
Hiring a customs broker can help your business navigate these restrictions and use this shipping option efficiently for its business needs. When selecting one, ensure they possess knowledge about all aspects of international customs (particularly Section 321) so they can optimize shipping practices while remaining compliant for an extended period.
Money-Saving Potential
Delays in shipping can cost eCommerce merchants both sales and money. By qualifying for Section 321 exemptions, eCommerce merchants can reduce shipping costs while keeping customers satisfied.
CBP launched a pilot test of a new entry process in September 2019, which allows owners, purchasers or their customs broker acting on their behalf to file informal Section 321 entries electronically in the Automated Commercial Environment (ACE) with limited data requirements – an entry type known as 86 that provides faster clearance processes for low-value shipments.
The 86 entry filing requirement is an ideal solution for online retailers with domestic warehouses and fulfillment centers, enabling them to file just one Form 86 form for orders from multiple customers that will all ship out as one package – saving both time and money in duty taxes – an invaluable benefit of using domestic fulfillment centers to expand their businesses without overextending themselves financially.
Time-Saving Process
Companies using warehouses or fulfillment centers in the US to ship imports can save considerable costs by shipping their shipments under Section 321. This is particularly advantageous for eCommerce sellers that can combine orders from multiple customers into one shipment to qualify under this rule.
Shipping under Section 321 does present its own challenges. There are certain requirements related to customs valuation that must be fulfilled; currently there are six methods of customs valuation; with transaction value being the most popular method.
Additionally, in order to claim Section 321, carriers must submit additional details to CBP such as shipper and consignee data, commodity description, merchandise value, country of origin etc. For this reason many shippers opt for customs brokerage services which allow electronic submission of this data – this helps CBP process shipments more rapidly at the border.
Customs Compliance
Customs compliance refers to ensuring all trade information about your product is accurate. This involves accurately classifying tariff classification, origin and valuation as well as declaring appropriate duty rates and declaring correct tariff compliance penalties, while creating a system for dealing with potential issues.
Good customs compliance practices allow traders to avoid expensive fines and penalties, uphold fair practices standards, ensure safe shipments and build customer trust by showing that they adhere to stringent regulations.
There are various resources available to you that can assist in understanding customs compliance regulations, beginning with your country’s customs authority website or trade organizations for further insight. It’s also vitally important that you find reliable customs brokers and freight forwarders to assist with remaining compliant – this will save both time and money in the long run – such as having experience handling customs audits or C-TPAT verifications as well as working closely with government agencies.