E-commerce merchants are increasingseeking direct airfreight options to the USA and looking at US customs Clearancesolutions for their high volume parcel flows.
The main points to consider when shipping online orders to the USA:
- Required documentation for parcels shipped to the USA
- How valuation affects clearance
- Shipping options for online orders to the USA
Jet Worldwide provides logistics expertise (as evidenced by our industry leading blog articles) and global parcel shipping solutions: Including shipping to and from the USA.
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1. Required documentation Section 321 items shipped to the USA
US customs processes for online orders have been streamlined. All international parcel shipments to the USA from must be accompanied by an invoice for customs clearance. Customs clearance is the umbrella term for the various stages of getting your goods across the American border. It can involve US Customs and Border Protection but also "other government agencies" such as the Food and Drug Administration or Fish and Wildlife. The key data points required for an invoice for customs include:
Date of shipment
- Name, address and telephone number of shipper
- Name, address and telephone number of consignee
- Detailed description of the item(s) being sent
- Value of the item(s)
Note: For online orders, the invoice data can be directly transferred consolidated informal entries to US Customs and pre-alert requirements via API interfaces. Contact Jet Worldwide for assistance with your customs paperwork for your parcel to The US.
Paperwork for “Other Government Agencies”
There are over 40 US government departments that have unique requirements necessary for your goods to clear customs. Goods that require other government / partner agencies typically cannot be cleared via Section 321 processes.
2. How valuation effects clearance to the USA
Customs entries can be broadly defined in 3 categories:
- Under USD 800: Most shipments valued under USD 800 can be imported duty-free.
- Over USD 800 but less than USD 2,500: Informal entry
- Over USD 2,500: Many importers prefer to have such shipments cleared by their designated customs broker.
Note: When shipping to the USA from Canada, many shipments are subject to approval of other government agencies and - regardless of value - require a formal entry. For food items to the USA, please see note above regarding "prior notice requirements." Contact Jet Worldwide for information on restricted items to the USA.
3. Common Carrier options for shipping parcels to the USA
The main options for sending parcels to the US from Canada include
- Postal options
- FedEx/ UPS (including their postal options
- Shipping direct to the USA for USPS or in-store pickup
Sending with local Post options to the USA
Lowest-cost option for small “packets” to the USA.
This service is by far the best value for small shipments and most post offices offer a version of this service. The international postal packet services are valid for goods up to 2 kg and can include surface, air and “packet tracker” options. The packet option’s low cost is due to traditional Universal Postal Union rules that have been adapted for the cross border e-commerce packets.
Postal Clearance versus Commercial Clearance
The postal clearance processes traditional advantage over commercial clearance has largely dissipated with the new section 321 processes outlined above. In fact the USPS Global Direct Entry option is a hybrid product that gives international sellers low cost last mile postal delivery following commercial clearance (see below).
Delivery to the USA via FedEx Canada and UPS
FedEx and UPS dominate the market for delivery to the USA and offer access via their impressive air express networks. Along with the local post, FedEx and UPS are well known options from overseas locations. Their market dominance can mean higher pricing and inflexible processes.
Delivery to the USA via FedEx, UPS and DHL US mail options
Fedex and UPS -along with DH - offer hybrid options of bulk import with final mile delivery via the USPS Parcel Select option. These options ideally integrates air transport within their respective networks, section 321 clearance and final mile delivery by the USPS.
Connecting Directly with the USPS from international locations
As mentioned international sellers can connect directly with the USPS for shipments to the USA via their Global Direct Entry. Shippers have to arrange for their own airlift and clearance but benefit from a direct USPS relationship and unique service options. Contact Jet’s for an initial consultation on setting up direct shipping processes to the USA
USPS Last Mile Delivery
The US Post office remains the lowest cost last mile delivery solutions used by Amazon, FedEx, UPS and DHL via their Parcel Select service. There are also independent resellers of this and other USPS final mile delivery options. Once the goods are cleared, it is really just a matter of gaining access at the lowest cost.
Multiple Ports of Entry to the US
Even with a consolidation of only 100 kg, it often makes sense to develop routings via various ports of entry based on available air cargo capacity and final destination.
Multiple Port, multiple methods
The continued disruptions in volume and capacity, international retailers are seeking to diversify their processes and building in additional capacity for resilience. This includes repositioning capacity via multiple ports, adding visibility by being in more direct control of clearance processes and enabling the use of express processes.
How can Jet Worldwide help?
At Jet Worldwide, our mission is to connect people, parcels and businesses around the world. We can work either your independent consultant to help you understand the regulations and introduce you to the most credible vendors.
The opportunity for e-commerce merchants to gain control of their parcel supply chain from Asian suppliers direct to their US customer is a game changer.
