Section 321 Fulfillment: Effortless Duty-Free Imports

By leveraging the Section 321 exemption, ShipTop helps businesses lower duty and tariff expenses by importing goods into our Canadian fulfillment center and shipping individual orders to customers in the US. 

  • Duty-free imports to US
  • Cost savings per unit
  • Seamless customer experience
  • Duty drawback/K32 Filings
  • Competitive pricing advantage
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What is Section 321?

Section 321 of the U.S. Tariff Act is an exemption by Customs and Border Protection (CBP) that allows shipments under $800 to enter the US, duty-free. For DTC eCommerce brands, this provides an opportunity to lower duty and tariff costs for small shipments imported into the US.

What is the duty drawback program?

Through the Canada duty drawback program, businesses can apply for a refund or remission of customs duties on eligible imported goods, once they are exported out of Canada. Note: The goods need to be exported within four years of importation.

Section 321 fulfillment from Canada

Section 321 fulfillment is the process of fulfilling orders that qualify for duty-free and expedited clearance under U.S. Customs and Border Protection regulations. This involves optimizing the fulfillment process to meet Section 321 requirements, allowing for faster and more efficient delivery of low-value shipments from Canada to the United States.

How does the Section 321 Fulfillment Process Work?

01 Import Goods To Canada

Ship goods made outside of North American directly to ShipTop's fulfillment centers in Toronto or Vancouver.

03 Cross Border Shipping

Items are shipped across the border from Canada to the US and delivered via ShipTop's extensive network of U.S. carriers.

02 ShipTop Fulfills Your Orders

When a customer places an order, ShipTop picks, packs, and ships the order the same-day.

04 Duties Are Refunded

Any duties and tariffs paid in Canada are refunded through the duty drawback program.

The Benefits of Section 321 Shipments

Cost Savings

Section 321 gives you the potential for significant cost savings. By exempting import duties and taxes on shipments valued under $800, retailers can lower their total landed costs and transfer these savings to their customers. This can result in more competitive pricing, attracting a larger customer base and boosting sales volume, which ultimately leads to increased revenue.

Fast clearance and delivery times

Utilizing Section 321 minimizes the paperwork needed to import products into the U.S. and clear customs. This accelerates the shipping process and reduces the likelihood of delays caused by customs holds. As a result, orders can be picked, packed, and shipped from fulfillment centers on the same day they are placed online.

Enhanced Competitiveness

Utilizing Section 321 allows U.S. retailers to provide better shipping rates and more cost-effective products to their customers. By cutting down on international shipping expenses, retailers can draw in a wider customer base and extend their market reach. This increased competitiveness is crucial for thriving in the intensely competitive eCommerce environment.

Improved Supply Chain Efficiency

Section 321 simplifies the import process by reducing the need for extensive paperwork and intricate customs procedures for low-value shipments. This streamlined process lowers administrative burdens, enabling retailers to concentrate on their core business activities. By enhancing their supply chain, retailers can increase efficiency, cut costs, and allocate resources more effectively to drive growth.

Lower cost per unit

With 20% savings on duties and tariffs, you get to lower the cost per unit of your product. This amount can be invested elsewhere in your company, or passed on to the consumer.

International expansion

By adding inventory to fulfillment centers in Canada, you can also expand your distribution into a new market. For U.S. brands, this provides a chance to explore international growth in a smaller, yet similar market. Localizing in Canada also means faster delivery times for Canadian customers and reduced shipping costs.

Request a consultation and start saving.

Talk to our team today to see how ShipTop can help you take advantage of Section 321.

Frequently Asked Questions

Section 321 fulfillment refers to the process of handling and shipping orders that qualify for duty-free and expedited clearance under Section 321 of the U.S. Customs and Border Protection regulations. This allows for faster and more efficient delivery of low-value shipments from Canada to the United States. and more efficient delivery of low-value shipments from Canada to the United States.

There is no minimum cost requirement for goods to be eligible under Section 321. However, the retail value of the shipment must not exceed $800 to qualify for duty-free entry into the U.S.

 

Section 321 helps retailers save on import duties and taxes, reduce shipping times, and minimize paperwork. This leads to lower costs per unit, more competitive pricing, and improved customer satisfaction, ultimately driving sales growth.

Most consumer goods can be shipped under Section 321. However, there are restrictions on certain products such as tobacco, alcohol, and items requiring special permits. It’s important to check the specific regulations for your product category.

By reducing the amount of required paperwork and simplifying customs procedures, Section 321 speeds up the clearance process at the border. This allows for same-day picking, packing, and shipping of orders from fulfillment centers.