Eyeing the USA market to scale your e-commerce business? Bypass import fees and improve cash flow with Section 321 fulfillment of Customs and Border Protection.
Make your e-commerce aspirations come true. Discover how Locad can help you reach customers in the US through our warehouses in Canada & Mexico at a fraction of cost and shipping time!
A ticket to take your e-commerce business to the US, Section 321 is a provision in the U.S. Customs and Border Protection (CBP) regulations that allow e-commerce brands for the duty-free importation of goods with a value of up to $800 per shipment.
Section 321 entry allows businesses a speedy and cost-effective way of importing qualified goods into the United States duty-free through our warehouses in Canada and Mexico.
✅ Eliminate delays at customs
✅ Give your customers competitive pricing
✅ Enter a new market without heavy costs
✅ Reduce paperwork and move fast
Locad’s dedicated warehouse in Tijuana, Mexico caters to end-to-end fulfillment of Section 321-compliant orders to shoppers in the US.
With our strategically located bonded warehouse:
Used cross functionally, it refers to the provision in U.S. customs regulations that allows for the duty-free importation of goods valued equal to or less than $800 for personal use or commercial purposes.
By leveraging de minimis fulfillment, e-commerce brands can achieve faster customs clearance and faster shipping, allowing for quick response to market demands and action enhanced customer satisfaction. This approach enables economical product offering expansion to enter a new market, particularly for small and medium-sized enterprises with minimal financial risk, ultimately contributing to improved profitability, growth, and long-term scaling.
Grow your e-commerce brand by expanding into the world’s biggest consumer market with Section 321 fulfillment, fuelled by Locad.
Section 321 fulfillment serves as a vital tool for e-commerce brands to effectively increase their market presence, optimize their supply chain, and drive sustainable growth in the competitive US e-commerce landscape.
Import goods into the US duty-free if each shipment is valued at $800 or less. Lower your costs, which can significantly boost your profit margins.
Tap into one of the world's largest consumer markets. Drive higher sales volumes and contribute to overall business growth.
Deferred payment of import duties and taxes, improves cash flow. Allocate financial resources more effectively, investing in marketing, and product development.
With efficient inventory management, reduce holding costs and improve profit margins. Analyze real-time demand, minimizing stockouts and overstock situations.
With Section 321 fulfillment, store your inventory closer to the US with Locad’s bonded warehouse in Mexico. This proximity enables quicker shipping and enhancing customer satisfaction, which can lead to repeat business.
Section 321 fulfillment simplifies the customs process by reducing the amount of paperwork and regulatory compliance required. This results in quicker customs clearance and fewer delays.
Differentiate your brand in the marketplace with Section 321 shipments. This can strengthen your competitive position over non-compliant brands by offering lower prices and faster shipping.
Save on costly import duties and taxes, with the best practices for Implementing Section 321 Fulfillment. Make way for enhanced profit margins that can be reinvested into marketing, product development, or scaling operations!
– Understand Regulations: Staying updated with the latest Section 321 regulations helps in avoiding non-compliance related fines or delays.
– Proper Documentation: Keep accurate track records and documentation to prove that each shipment qualifies for CBP Section 321 entry.
– Track Order Values: Monitor the value of each shipment to ensure it does not exceed the $800 threshold of Section 321 DeMinimis. Using inventory management tools like the Locad Logistics Engine helps with this.
– Choose the Right Partners: Working with fulfillment providers like Locad who are familiar with Section 321 regulations can help you ship to your customers in the US seamlessly.
– Regular Communication: Keep lines of communication active with your fulfillment partners to ensure smooth processing and compliance.
– Use Advance Software: Like the Locad Logistics Engine, the chosen software should integrate with preferred e-commerce marketplaces to automate and manage Section 321 compliance and reporting.
– Monitor Performance: Set regular assessments regarding the impact of Section 321 fulfillment on your profitability and adjust your strategies as needed.
– Stay Informed: Stay up-to-date with changes in regulations or market conditions that could affect your 321 fulfillment entry.
By effectively leveraging CBP Section 321 fulfillment into e-commerce growth strategy, your online business can operate more efficiently and profitably. The combination of reduced costs, streamlined operations, and the ability to adapt quickly to market changes makes it a powerful tool for enhancing your competitive edge and expanding your market reach to customers in the US.
Leverage your position in the US market with a step-by-step guide on how to get your e-commerce brand 321 Fulfillment ready.
– Value Threshold: To effectively leverage 321 fulfillment, brands must analyse their position in the US market and ensure the value of each shipment must be valued at $800 or less to qualify for Section 321 entry. Shipments exceeding this value will not be eligible for duty-free entry under this provision and shall be subjected to additional taxes and tariffs.
– Shipment Definitions: The CBP Section 321 applies to shipments sent from a foreign e-commerce brand to a U.S. buyer. Each shipment must meet the $800 limit and cannot be consolidated with other shipments to exceed this limit.
Here are some important definitions related to Section 321 fulfillment:
1. De Minimis: Refers to a legal term meaning “of minimal importance.” In context of Section 321 fulfillment, it refers to goods valued at $800 or less that can be imported without incurring duties or taxes.
2. Customs Clearance: Refers to the process by which imported goods are allowed to enter a country after meeting the needed requirements. Section 321 shipments often experience expedited customs clearance as an added advantage.
3. Duty-Free: Under Section 321, eligible goods can be imported without the obligation to pay customs duties or tariffs.
4. Value Threshold: Refers to the maximum allowed value for goods to qualify for Section 321 de minimis entry, which is currently set at $800.
5. Exemptions: Refers to a set of goods under specific categories which may not qualify for the de minimis treatment, such as tobacco or other prohibited items.
6. Import Declaration: Refers to a formal statement made to customs authorities that provides information about the nature of the goods being imported, including their value and purpose.
Understanding these definitions is essential for seamlessly navigating Section 321 fulfillment and optimizing your e-commerce growth strategy.
– Legal and Regulatory Compliance: As a pilot to your brand’s expansion strategy, consider setting up a U.S.-based entity or working with a U.S. business partner to simplify operations and compliance and avoid any legal errors.
– Obtain a U.S. Importer of Record (IoR) Number: Importer of Record refers to a unique identifier assigned to the entity for the importation of goods into a country. This is crucial to ensure all duties, taxes, and fees are paid and that the imported goods comply with all applicable laws. It is advisable to get a U.S. Importer of Record (IoR) Number through a U.S. partner or a third-party service provider such as Locad.
– Product Compliance: To effectively enter the U.S. market, ensure that the products comply with U.S. regulations, including safety, labeling, and any industry-specific standards. It is integral to note, the incoming products should also not infringe any U.S. trademarks or patents to avoid any intellectual property breach.
– Evaluate Capabilities: Ensure the select fulfillment partner can handle your product types, manage inventory, and execute efficient shipping strategies. Locad ensures your e-commerce brand gets the most out of the 321 fulfillment entry and helps you expand to new markets with ease.
– Consider a Customs Broker: Engage with a customs broker who has a deep understanding of the Section 321 de minimis and can help ensure that shipments meet compliance requirements and streamline the entry process.
– Manage Order Values: Plan and structure your shipments to stay within the $800 limit per shipment. Strategizing this might involve splitting larger orders into multiple shipments. This can be facilitated with Order Management Softwares like Locad Logistics Engine to track the shipment values and ensure compliance with the limit set.
– Select Shipping Methods: Choosing cost-effective shipping methods that balance cost and delivery speed. Locad partners with economical last mile carriers that are experienced with Section 321 fulfillment.
– Forecast Demand: With efficient Order Management Systems like the Locad Logistics Engine, leverage the efficiency of market research to forecast demand and manage inventory levels effectively. This ensures operating at optimal inventory levels to ensure the supply is met without overstocking. With market expansion comes great cost, and forecast demand can help in effectively saving costs on freight to the ports.
– Adjust Inventory: Regularly review and adjust inventory based on sales trends and seasonality to avoid overstocking or stockouts.
– Prepare Accurate Documentation: To ensure compliance with Section 321 Fulfillment, its integral for each shipment to include accurate invoices and proof of value to support the duty-free claim under Section 321 entry. E-commerce brands must keep detailed records of all shipments and their values for audit purposes and regulatory compliance.
– Monitor Regulations: Regularly check for new updates to U.S. customs regulations and Section 321 requirements to ensure ongoing compliance and to avoid any errors. With the constant change in political landscape, a business’ best interest is in to be up-to-date with the changes and make sure to keep their engine running!
– Localize Your Marketing: Adapt to U.S. Market by tailoring your marketing and promotional roadmap to the U.S. audience. Keep an eye out for local trends, preferences, and regulatory requirements in your marketing campaigns. This ensure your e-commerce brand gets the right foot in the door to launch and expand to a new market, while sustaining a long term presence.
– Build Brand Awareness: By digitizing your brand’s presence, you can invest in building a strong online presence through e-commerce platforms, social media, and digital marketing tailored to U.S. consumers.
– Track Performance: Analyze results and monitor sales performance, customer feedback, and fulfillment strategy to assess the effectiveness of your Section 321 fulfillment scope. This can help e-commerce brands re-direct efforts towards scaling ahead.
– Optimize Operations: Use insights from performance data to continuously improve your fulfillment processes and customer experience.
By leveraging Section 321 fulfillment, global e-commerce brands can enter the U.S. market with reduced import costs and streamlined operations. Proper planning, compliance, and effective partnerships are key to making the most of this opportunity.
Let Locad handle your Section 321-compliant orders. From storing your inventory in our bonded Mexico Warehouse to shipping to customers in the United States of America.
Enabling brands to go from East to West with Locad. Navigate 321 fulfillment with
Through the Locad Logistics Engine, get a single view dashboard to manage and upload your 321 compliant inventory.
With Locad’s real time inventory updates, stay on track with replenishments to ensure you’re never out of stock in your new market!
Central order processing through the Locad Logistics Engine. Connect to multiple marketplaces and seamlessly cater to incoming orders.
Fulfill orders on time and effectively!
Pack your orders with Locad’s value added services which are 100% compliant with 321 fulfillment.
Club or Split orders to qualify for the minimum value ($800) and print labels to effectively ship orders from Mexico to the US.
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