High Volume Parcel Import to the USA for online orders

Express, Cargo and single entry section entries for duty free import to the US and Canada.

We are updating this blog as e-commerce companies express renewed interest in using Express Consignment Carrier Facilities / ECCF for their e-commerce parcel imports to the USA. We also thought it useful to provide more details. ECCF's continue to be a key resource for high volume E-commerce shipments to the USA (or any high volume USA parcel imports).

 

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Ship to the USA


E-commerce companies are increasingly interested in using simplified, duty free "section 321" clearance for e-commerce parcels imported to the USA that are valued as much as $800! Many are trying to take advantage of the new low value threshold by sending their Fulfillment by Amazon (FBA) shipments via ECCF and CFS facilities.

Chinese, French, Italian - and international companies around the world- can contract directly with the US Postal Service (USPS) via their Global Direct Entry. Jet assists companies to develop duty free Section 321 type 11 and type 86. ECCF clearance across the USA for direct entry for USPS delivery.

Contact our team for a free initial consultation on high volume on line order clearance to the USA.

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The USA is Most Open Market for Cross Border E-Commerce!
Below the headlines of a trade tensions, many are surprised of the reality of duty free access for most on-line purchases up to US$800 USD (referred to as "section 321" informal entry type 11)
  1. Clothing, fashion, household goods, electronics and other non-restricted goods valued under $800 can be imported duty free to the USA.
  2. The goods can be entered using simplified clearance processes that do not require and an H.S. Code.
  3. US customs/ CBP offers express clearance processes that ensure timely clearance within hours of arrival at the port of entry (and often cleared prior to arrival) even during the peak holiday season.
Put another way, most orders valued under $800 USD can be imported directly to the USA without duty or tax.

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What is Section 321?

US Customs allows most individual orders valued under $800 USD to be entered and cleared duty free into the USA. This entry type is known as a Section 321 Informal Entry. Using this entry type, importers can consolidate all their qualifying orders under one entry without H.S. Codes and benefit from duty free entry.

SECTION 321: TYPE 86
For companies who have clear understanding of H.S. Codes for their products, a consolidated Section 321 Type 86 is the way to go. Using a type 86 entry, companies can benefit from duty free clearance without the cost of an express consignment clearance facility.

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International e-commerce orders to the USA can be shipped via Canada.

Contact Jet's Canadian Logistics team for details.


Express Consignment Carrier Facility/ E.C.C.F. Explained:

Express Consignment Carrier Facilities / ECCF's are essentially bonded warehouses that are able to handle express high volume parcel flows into the USA. Integrators operate versions of E.C.C.F's with the added function of being able to operate as hubs.

The processes for high volume parcel importing to the USA using Express Consignment processes are defined in the Code of Federal Regulations, Part 128 (CFR 128).

Independently owned ECCF's exist at key ports of entry including JFK, LAX and ORD. International couriers and high volume parcel shippers to the USA (including high volume e-commerce parcel flows to the USA) can access these facilities for cost efficient clearance and domestic injection.

For parcel shippers to the USA, there are three main options:

  1. Send parcels to the USA within the postal parcel system
  2. Import parcels through theintegrators networks (FedEx, UPS, DHL)
  3. Send directly to the USA via ECCF, CFS, Section 321 type 86 entry
  4. Connect with USPS final mile delivery solution

For many parcel shippers to the USA, the FedEx / UPS systems suffice. Their integrated networks are efficient and reliable. However, their dominance in the US market often makes it difficult to negotiate the low cost necessary to compete in the e-commerce marketplace.

CFS or ECCF

Some Container Freight Stations (CFS) provide similar clearance capability but without the CBP customs reimbursement fee.

Port of Entry and Method of Transport matter for e-commerce parcels
The e-commerce express and cargo individual parcel clearance is currently available mostly via air freight hubs and gateway cities. Major express facilities and hubs with advanced "section 321" processes include:
  • FedEx, UPS and DHL Express hubs
  • Postal hubs (with different "postal clearance" processes rather than Section 321)
  • Independent ECCF facilities in Los Angeles, Miami, New York and Chicago
  • Cargo clearance (CFS) facilities at major airport gateway facilities
  • Border crossing from Canada (airfreighted to Canada and trucked to the border) and Mexico

The parcel clearance processes in other major airports - including DFW, IAH, ATL - are less clear but becoming more possible - if not yet generally known.
 

Note: The official term for an ECCF is Express consignment carrier facility but often the terms "Express Consignment Clearance Facility" and "Express Consignment Courier Facility" are used interchangeably when referring to an ECCF.


The postal networks have steadily increased in their effectiveness and increasingly being used by e-commerce companies sending to the USA.

DHL Global Mail, UPS and FedEx Smart Post are the among the largest customers of the US Postal Service. Following ECCF clearance, customs can send directly with the USPS Parcel Select or via resellers.

Cross - border e-commerce sellers can now contract directly with the USPS via their Direct Global Entry Service. Orders can be processed with USPS labels direct from origin and cleared into the USA via high volume parcel clearance processes.

 

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The quality of service in the postal network has steadily improved and the "postal clearance processes" are less intensive (easier) than the commercial clearance requirements. However, postal clearance can be unreliable, especially during the critical holiday season and new regulations continue to lessen the clearance advantages enjoyed by the post office.

The role of an ECCF for High Volume Parcel Flows to the USA:

E-commerce companies with high Volume parcel flows to the USA can take advantage of domestic ground systems in the USA by utilizing strategically located ECCF's. Beyond the ground networks of FedEx and UPS, the most cost effective solution is the Parcel Select Program from USPS.

The United States Postal Service (USPS) offers low cost parcel delivery through its Parcel Select Program. The program allows companies to access the USPS delivery network at a discount that is related to how close the point of injection is to the final delivery point. Proof of the programs effectiveness is that fact that FedEx and UPS utilize Parcel Select themselves!

Even for high volume parcel importers to the USA, it is best to utilize a company that resells USPS Parcel Select Services. Resellers of Parcel Select have the necessary volume and expertise which is difficult to replicate. They also offer return programs.

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ECCF + Postal Delivery

Combining the use of an ECCF with a postal delivery provides a unique, cost effective solution. Doing so also provides more control and options for the reverse logistics processes. USPS is offering Global Direct Entry for USPS last mile solutions to the USA.

How to Access an Express Consignment Carrier Facility/ ECCF:

The system works as follows:

  • Arrange for air freight line-hauls to ECCF's.
  • Establish a method to transmit manifest data/ electronic manifest to meet “Air AMS” requirements.
  • Arrange with a US customs broker who specializes in high volume parcel import to the USA.
  • Establish methods of domestic distribution (integrator, USPS, or regional carrier)

Most important in the process of accessing an ECCF is to find the right US Customs Broker. High volume parcel flows to the USA are best handled by brokers who are familiar with Express Consignment regulations and who have access to an ECCF.

Broadly speaking, customs clearance can be broken down into the following categories:

  • Low value/ Under $800 (section 321)
  • Informal Entry ($801 to $2,500 in value)
  • Formal Entry (over $2,500 in value)
  • Entries requiring “other government agencies”

Customs brokers experienced in high volume parcel import utilize the e-manifest data (mentioned above) as the basis for their customs entry. Finding brokers who understand high volume parcel clearance processes is difficult.

By far the most common entry type for E.C.C.F's are "Section 321" which allow most items to be submitted on a consolidated manifest. Shipments on a section 321 type 11 entry do not require H.S. Codes and are not assessed duty.

Consolidated Entries:

The business model of most customs brokers is based on a fee per entry: One shipment = 1 Entry. Brokers who understand Express Consignment are able to prepare consolidated entry for shipments valued under $2,500 and base their fees from parcel volumes.

Depending upon the mix of commodities in the high volume parcel flows to the USA, this usually means that over 95% of the shipments can be pre-cleared and available for domestic distribution the same day as flight arrival.


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