Benefits of Section 321 Entry for DTC Brands

Shipping logistics can make or break an eCommerce business. Customs duties, import taxes and fulfillment costs all impact fulfillment costs significantly.

Section 321 entry permits online retailers to bypass costly formal entry processes; however, this method has its limitations.

Businesses must use an ACE-approved customs broker and submit a Section 321 informal entry in ACE with Entry Type 86 as the Entry Type ID.

Avoiding Duties and Taxes

As a business, utilizing section 321 entry can provide enormous cost-cutting benefits when importing from China. This is especially relevant given the US-China trade war’s impact, which has increased costs by increasing tariffs (commonly known as “Section 301 China”).

Shipping goods through section 321 entry speeds up their clearance at the border, cutting costs and expediting the process. This saves money which you can pass along to customers with competitive pricing strategies.

Red Stag Fulfillment uses one customs broker partner exclusively for all their Section 321 entries to streamline our workflow and expedite clearance of low value eCommerce shipments quickly. This ensures an audit trail. To avoid unnecessary confusion and speed up clearance times for low value shipments, Red Stag Fulfilment utilizes this approach with all their orders that qualify under Section 321.

Speeding Up the Importation Process

Section 321 can help eCommerce merchants reduce shipping costs or small businesses compete more effectively against larger players in the market, but to do so effectively it’s critical that they work with an experienced customs consultant familiar with its unique rules and regulations.

Also, to reduce unnecessarily high penalties, you should submit only one Section 321 claim per day and ensure your carrier follows all administrative guidelines; such as not claiming too many low-value items together in one shipment or failing to comply with other requirements like proof of valuation.

GeTS’ ACE eManifest solution offers 24/7 customer support, automated Section 321 entry filings and seamless integration with existing systems – making it an efficient way of processing imports with little manual data entry involved, saving both time and money while opening up opportunities to import products that wouldn’t make sense otherwise.

Streamlining the Shipping Logistics

Adopting efficient shipping practices helps businesses reduce international customs duties, import duties and freight costs to secure profits while making shipping faster and more affordable. There are various factors which influence expected shipping expenses which must be taken into consideration before arriving at any conclusion regarding expected costs.

Importing goods presents many obstacles, chief among them navigating the intricate rules and regulations set out by US Customs and Border Protection (CBP). CBP has various laws and guidelines which must be observed to avoid costly penalties.

CBP has made importing low-value shipments easier for businesses through the Section 321 data pilot launched in 2018. This program analyzes information gathered from informal entries to reduce clearance time for merchandise entering the United States and identify high-risk products to improve CBP’s ability to verify compliance with import laws, ultimately benefiting business operations while streamlining ecommerce fulfillment processes.

Saving Money

Claiming section 321 entry can save businesses significant sums in fees and clearance times, opening up opportunities to import goods that were once not profitable or practical – providing DTC brands more leverage in competing effectively in US markets.

DTC apparel and footwear brands that utilize this program stand to gain another significant benefit: being exempted from incurring tariffs of 301-303 that resulted from China’s ongoing trade dispute with the United States – costing importers billions more in higher tariff costs due to these tariffs.

Noting the restrictions associated with section 321 entries is key, including the avoidance of alcohol and tobacco products, those subject to government regulations, or those subject to countervailing or anti-dumping duties. Therefore it’s best to use an experienced ACE eManifest filing service such as theirs so your submissions will arrive correctly and on time.