Simplified duty fee import for e-commerce parcels
A growing number of Asian and European E-commerce retailers are seeking to develop direct import processes to the USA. The need for e-commerce parcels import solutions are the result of internet technologies enabling a direct connection between the buyer and seller. Duty free section 321 type 86 clearance is possible for ocean freight parcels.
Many traditional logistics professional are surprised by the the incredible reality of duty free access for most on-line purchases of $800 USD or less.
The low value duty free threshold of $800 to the US is often referred to as a Section 321 entry type. See below for a history of the increased low value threshold to the USA.
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International sellers and online merchants need to develop best in class shipping solutions to the USA. This simply involves air freight to major ports of entry, section 321 duty free clearance and strategic injection points to the USPS.
Jet assists retailers and online merchants can gain control. lower costs and improve delivery times by taking their parcel logistics processes in house. Jet provides transparency, industry insights and decades of experience to your logistics team.
READ ABOUT POSSIBLE CHANGE FRO LOW VALUE USA ENTRIES
Following the lead from consumers, businesses are procuring parts and supplies more directly via efficient e-commerce processes.
Most e-commerce merchandise imported into the U.S. by one person on one day having a fair retail value not exceeding $800 will be eligible for Section 321 entry duty free clearance. (See exceptions below).
Single parcel import for online e-commerce via USA for CBP Section 321 type 11 and new Section 321 type 86 are the new strategic import processes
* See below for update on new type of Section 321 entry for 2020
The regulations in the USA recognize the need for efficient parcel clearance primarily through a process referred to as Section 321 entry.
The duty free "de minimus threshold" of $800 US provides great opportunities for cross border e-commerce parcel import.
"Section 321” is a subcategory informal entry, allows the duty-free entry of a shipment valued less than $800 that is imported by one person on one day, with minimal attendant documentation requirements.
The term “Section 321” is derived from this provision’s statutory source, 19 U.S.C. § 1321(a)(2)(C).
Contact our team for information on setting up high volume parcel import processes via Express Consignment (ECCF) and cargo processes.
READ MORE: UNDERSTANDING DUTY AND HOW THEY ARE CALCULATED
Many products cannot be imported using section 321 regardless of value. Commodities regulated by U.S. Customs and Border Protection (CBP) or other government agencies (including APHIS,TTB, FDA, EPA, Fish and Wildlife) often require examination and/ or a formal entry.
Anti-dumping/countervailing entries as well as quota-class merchandise are not eligible for Section 321 entry
Jet works with partners who can provide Section 321 entry clearance via an Express Consignment Clearance Facility / ECCF. These US Customs approved facilities are subject to complex regulations (Part 128 of the Code of Federal Regulations) and allow for streamlined processes. ECCF's provide efficient processing for shipments valued up to $2,500.
US customs brokers, even if nationally permitted, are often not able to provide ECCF clearance across multiple ports in the USA.
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The key drawback to Express (ECCF) clearance is that US Customs and Border Protection (CBP) charges a $1.07 per shipment fee. When dealing with potentially tens of thousands of shipments per day, this fee can be significant. Although Jet provides express and cargo possibilities, we recommend using express facilities.
At some ports, most notably Cincinnati, cargo clearance works well but ECCF processes remain a more secure method of parcel importing. As the general value of merchandise increases, the $1.00 per shipment becomes less of an issue.
Jet Worldwide helps International e-commerce retailers develop high volume USA parcel import processes using multiple ports of entry employing simplified duty free clearance processes.
Section 321 Entry Requirements and Product Restrictions:
As mentioned above, items requiring inspection as a condition of release, regardless of value, merchandise subject to Anti-Dumping / Countervailing duty (ADD/CVD), and certain products regulated by the following Partner Government Agencies (PGAs), may not qualify under Section 321:
Under new "type 86" Section 321, clearance of other government agencies will be possible for low value shipments.
Section 321 Daily Restrictions:
It is important to remember that the $800 value applies to shipments of articles imported by one person on one day. Goods sent as gifts from a person in a foreign country or accompanying personal or household use of a person arriving in the U.S. are not imported using Section 321 entry.
Importers are restricted to benefiting from duty free Section 321 entry for a single transaction per day. Goods requiring "other government agencies" are not permitted under section 321. See note below on "type 86" entry.
Carriers may make a Section 321 claim in conjunction with their eManifest filing, subsequently reducing the amount of paperwork on such low value transactions.
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:
READ MORE: CERTIFICATION OF ORIGIN AND WHEN IT IS NEEDED.
It is important that e-commerce parcel importers use customs brokers who are familiar with manifest pre-notice requirements, Section 321 entry and express consignment regulations.
Traditional customs brokers are not familiar with high volume parcel import processes and commonly recommend transitional formal entry processes. We advise building a strong communication and integrate control of your parcels to ensure low cost efficient clearance vai Section 321 entry and informal entry for parcels valued between $800 and $2,500.
Section 321entries and the $800 de minimis are a game changer for international parcel importing.
Section 321 de minimis entry process for Section 321 low-valued shipments in ACE through the development of a new informal entry type “86.” This opens up possibilities for all customs brokers to access section 321 processes.
The new section 321 processes present both opportunities for e-tailers who wish to import directly from China, Korea, Asia, France, UK, Europe.... and from anywhere!
Jet's solutions provide you an opportunity to lower your costs by developing secure, low cost Section 321 clearance at multiple ports of entry in across the USA.
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.
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