Now more than ever, ecommerce businesses are focusing on reducing logistics costs to increase revenue. However, keeping expenses down while shipping products from overseas is challenging due to high customs, import duties, and taxes.

Streamlining your ecommerce supply chain, cutting costs, and complying with US Customs and Border Protection regulations can seem daunting. That’s where Section 321 comes into play.

Section 321 allows low-value shipments to bypass taxes and duties, making it more affordable to ship products to the US.

In this guide, we’ll explore how Section 321 works, how you can benefit from it, and how HSO Network can assist you.

**Note: This article is for informational purposes only and does not constitute legal advice.**

### What is Section 321?

Section 321 is a US Customs and Border Protection (CBP) shipment type that permits goods to clear US customs tax and duty-free. This provision exempts low-value shipments from taxes and duties if they meet the de minimis threshold of $800 or less.

Section 321 allows goods below the de minimis value to bypass duties and taxes upon import into the US, simplifying the customs process with less paperwork. This not only helps businesses reduce international shipping costs but also speeds up the cross-border shipping process.

As a result, Section 321 can provide ecommerce businesses with a competitive edge and reclaim revenue previously spent on taxes and duties.

### 3 Key Points About Section 321 for Ecommerce

Section 321, part of the Tariff Act of 1930, helps ecommerce businesses save on importing costs for shipping products to the US. While it allows brands to bypass taxes and duties and their shipments to clear more quickly with less paperwork, it has complex guidelines and regulations.

Here are some important rules and conditions to be aware of:

1. **US Customs Laws and Regulations**

There are various laws and regulations to know when leveraging Section 321. For instance, there is a duty exemption for goods produced at less than $800 in fair retail value in the country of shipment. Additionally, some goods are restricted by administrative ruling, such as:

   - Products requiring customs inspection (e.g., harsh chemicals or cleaning supplies)

   - Goods under the Countervailing or Anti-Dumping Duty

   - Products regulated by agencies like FSIS, USDA, NHTSA, CPSA, or FDA

   - Cigarettes, cigars, and alcoholic beverages

   You must also provide proof of items’ retail value, and every shipment must include consignee names and addresses.

   The de minimis threshold was raised from $200 to $800 by the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA).

   If your goods exceed $800, Section 321 may not be suitable. Instead, consider Delivered Duties Paid (DDP) shipping or in-country fulfillment.

2. **Imports from China**

The US and China have been at odds over economic trade, resulting in US-specific import duties, known as "301 China" or "Section 301," on goods originating from China.

   This has cost importers billions in taxes, increasing tariffs on many products like food and beverages, household items, sporting goods, and personal care items.

   Fortunately, Section 321 overrides Section 301 if the items shipped meet the de minimis value.

3. **Limited to One Shipment Per Day**

To comply with Section 321, businesses can transport low-value shipments across the US border at minimal cost but must adhere to the daily restriction of one shipment per person (i.e., the brand or company) per day. To avoid penalties, ensure your carrier or freight shipping partner does not make multiple Section 321 claims on the same day.

### How Section 321 Can Benefit Your Ecommerce Shop

If you store inventory with a third-party logistics (3PL) company with US-based fulfillment centers, Section 321 can significantly reduce importing expenses, lowering international fulfillment costs. Here are some benefits of Section 321:

1. **Overall Lower Costs**

Section 321 allows ecommerce businesses to manufacture products overseas and import them to the US duty and tax-free. For example, if you manufacture low-value items in China, your shipment might qualify to be exempt from Section 301 tariffs.

2. **Faster Shipments**

Although proof of value is required, Section 321 reduces the paperwork needed to import products and clear customs. Using the electronic filing system, eManifest, speeds up the shipping process and eliminates delays caused by shipments held up at customs, resulting in faster order delivery to customers.

3. **Competitive Edge**

Saving on international shipping costs enables you to enter the US market more affordably and offer better shipping rates for US-based customers. Bulk shipping products to a 3PL’s fulfillment center in the US allows you to ship products domestically, reducing shipping costs and last-mile delivery times.

### How HSO Network Can Assist with Section 321 and Customs Requirements

Saving costs is crucial for your business, and understanding international shipping and trade laws, such as Section 321, can help you cut back on duties and fees, ultimately saving money.

HSO Network offers Section 321 from our warehouses in Canada and Mexico. By importing your inventory into our Section 321-compliant warehouses, we’ll ship orders directly to your US customers, maximizing revenue and keeping logistics costs down.

If you choose our non-bonded warehouse in Toronto, Canada, you pay Canadian duties upon entry and then file a duty drawback to recoup the costs. With our bonded warehouse in Tijuana, Mexico, you never pay duties to bring your inventory into Mexico.

Not sure which option is best? Our Section 321 experts can help determine the best strategy for your brand and customers.

HSO Network provides more than just Section 321 fulfillment. We offer numerous capabilities to help your brand scale internationally and save on fulfillment costs.

### HSO Network Partners with Brands Globally

Cross-border shipping is complex, but you don’t have to navigate it alone. HSO Network is an international fulfillment provider partnering with brands globally.

If Section 321 isn’t right for your brand, we offer international shipping capabilities to help you reach your customers, no matter their location. HSO Network can ship to over 250 destinations worldwide.

Additionally, HSO Network offers Delivered Duties Paid (DDP) shipping options from our US and UK fulfillment centers, providing customers with a smooth, duty-free delivery experience.

### Access to an Exclusive International Fulfillment Network

HSO Network has a global network of over 50 fulfillment centers in the US, Canada, Europe, the UK, and Australia. We offer best-in-class ecommerce fulfillment and shipping services to help you reach customers worldwide seamlessly.