Containers versus parcels: The Cross Border e-commerce clearance challenge.

Cross border e-commerce is challenging traditional supply chains that are unfamiliar with individual parcel clearance processes. Clearing one - or several ocean containers - usually involves a single entry to US customs. The entry cost - usually less than $100 - represents a small fraction of the value of the goods being imported.

The challenge for e-commerce is to find a way to clear individual parcels for a low cost per shipment.


International retailers are implementing high volume parcel section 321 duty free entry type 11 and type 86 to the USA.

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Ship to the USA

Retailers need to challenge - and rethink - their traditional logistics processes and implement direct order cross border processes. Direct cross border processes enable European and Asian retailers to fulfill their American customer's order directly from their overseas suppliers.

See note below on Section 321 type type 86 entry.

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Using Section 321 type 86 entries, e-commerce merchants can clear e-commerce orders shipped via individual parcels shipped via ocean freight. Contact our team for information on clearing ocean freight shipments via duty free section 321 processes.

Traditional methods of clearance are being replaced by individual parcel clearance processes. These processes require specialized knowledge in express regulations: Specifically Part 128 of the Code of Federal Regulations.

Contact our team to explore the

development of high volume direct order parcel import processes to the USA

 

The process of direct parcel import greatly simplify the clearance process and allow for duty free importation with a greatly reduced regulatory burden. Most retailers now utilize Formal CBP Entries which require record keeping and potential revisions 5 years after importation. Section 321 entries and consolidated informal CBP entries have a greatly reduced regulatory burden.

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Duty collection versus the duty of ensuring security for parcel imports

US Customs and Border Protection's (CBP) greatest concern has shifted from duty collection to ensuring the integrity of the items being imported.

Recent forfeitures of illegal substances have increased CBP's concern over the integrity of postal and express parcels being imported to the USA. Retailers need to set up direct supply chains that not mixed with less secure parcels.

This is especially true for high volume parcel flows being imported from cross border e-commerce carriers.

 

At Jet Worldwide, we are advising large retailers to avoid e-commerce third party carriers and to develop their own direct import processes using approved Express Consignment Operators.

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CBP requires companies to have integrated control over their package imports to the USA. In simple terms, it means simply declaring what is being imported and using the transaction value as the value upon import. As Section 321 entries are duty free for items up to $800, this requirement is simple and clear. No H.S. codes and commodity specialists are needed!

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UPDATED PARCEL IMPORT PROCESSES IN 2022?

US customs / CBP is conducting tests to authorize a new Section 321 de minimis entry process by creating a new entry type (entry type “86” ) through their automated (ACE) system. The ACE Entry Type 86 will create a way to submit low-valued shipments without an ECCF (see ECCF explanation below). It will also be away to clear low value shipments that are subject to approval of other government agencies such as the Food and Drug Administration (FDA).

Customs has been working on "one window clearance" processes that incorporates the requirements of other government agencies. In customs parlance, they are referred to as "Partner Government Agencies" or PGA's. Type 86 extends the "one window clearance" processes to include low value section 321.

Jet Worldwide helps retailers - and their logistics department - understand the high volume parcel import processes to access the American consumer market. Contact our team for consultation and advice.


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