07/01/2024

Utilizing Section 321 Solutions

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Section 321 is a provision within the Tariff Act of 1930 that allows for the duty-free entry of certain low-value shipments into the United States. Section 321 allows for goods to clear through US Customs and Border Protection on an ACE Manifest. Originally intended to expedite the clearance process for mail and courier shipments, Section 321 has gained popularity with the rise of eCommerce, with many shippers discovering its value.

The Section 321 solution allows shippers the opportunity to access their US customer base from strategic shipping points in Canada However, goods must meet the following criteria to be eligible:

  • Orders are destined for a United States address
  • Each individual order is valued under $800 USD

By utilizing Section 321 solutions, in tandem with Canadian duty drawback benefits, shippers can ultimately:

  • Reduce overall duty and tax burden
  • Reduce importing costs on certain products
  • Speed up their cross-border shipping

“The use of Section 321 has helped fuel the growth of small and medium-sized eCommerce businesses who leverage international markets in their supply chain,” said Steve Syverson, Sr. Director of eCommerce Solutions at NFI. “I encourage companies who fit the eligibility criteria to connect with their 3PL providers. It’s a win-win for competitiveness and efficiency.”

As a leading North American 3PL, our team helps customers understand and comply with trade regulations, including those pertaining to Section 321 solutions. With warehouse locations across the United States and Canada, NFI helps streamline solutions for shippers cross-border.

“We help many customers of ours take advantage of the benefits of Section 321, by directly lowering their cost per unit. This has been an increasingly popular feature for US eCommerce companies looking to reduce their cost. By having a Toronto facility for Section 321, you are able to service 50% of the Canadian population in 1 day, along with 60% of the US population in the North East within 1-2 days,” said Kyle Resnick, Senior Director, Business Development. “Shippers benefit from daily pick-ups from their facilities to inject midnight goods into their US courier hubs to align with morning deliveries.”

In addition to our warehouse locations, our global logistics, eCommerce, and engineering teams collaborate to ensure our shippers are compliant. We also partner with a customer broker who is able to help claim all the duties back. The team then stores the data required for completing the K32 Duty Drawback and ensures compliant records of your imports and exports to aid in claim filing processes if a shipper wishes to undertake this portion themselves.