What Is Section 321 Customs Entry?

Section 321 is a US Customs and Border Protection (CBP) rule that exempts low-value shipments from taxes and duties. This new customs entry type is intended to help CBP manage the flow of goods by creating greater visibility for low-value shipments entering the country, while improving border security.

Reduced Paperwork

Most ecommerce parcel shipments valued at $800 or less are eligible for section 321 customs entry, which allows them to clear through the US tax and duty free. This is a major win for eCommerce businesses, as it saves them countless hours of paperwork and eliminates costly import taxes and duties. The reduced paperwork associated with section 321 can be especially beneficial for online merchants with multiple warehouses and fulfillment centers. This is because they can ship inventory in bulk to these locations and avoid high duty taxes that apply to individual shipments. However, the reduced paperwork is not without its drawbacks. For one, it’s crucial to understand the limitations of this shipment type. Currently, most goods can qualify for a Section 321 Type 86 filing, with a few exceptions: products subject to Anti-Dumping / Countervailing Duties (ADD/CVD), merchandise regulated by the Food and Drug Administration, Food Safety Inspection Service, National Highway Transport and Safety Administration, Consumer Product Safety Commission, and the United States Department of Agriculture; or shipments that require inspection before release.

Streamlined Process

When shipping goods into the US, there are many factors that must be taken into account. These include international customs, taxes and import duties that can affect expected shipping costs. Using efficient shipping practices can save companies money in the long run and help them secure profit, especially with international shipments that often cause delays in the process. Section 321 customs entry is a tool that eCommerce companies are relying on to avoid these issues and keep their supply chains moving forward. In September 2019, CBP conducted a test of a new entry process known as the “Entry Type 86 Test.” This test allows Customs brokers and self-filers (an owner or purchaser of a Section 321 low-value shipment) to electronically submit de minimis entries with a limited data set through the Automated Broker Interface for these types of shipments. While this new process may seem to only apply to shipments under $800, it can help businesses import goods that would have otherwise not made sense for them. This can lead to lower shipping costs for their customers and give them a competitive edge in the market.

Reduced Costs

Using section 321 customs entry can help businesses save money by eliminating duties, taxes and fees. Moreover, it helps alleviate supply chain delays and reduce logistics costs. This law allows businesses to import goods that are worth $800 or less without having to go through the formal customs clearance process. However, there are some restrictions placed on the type of items that can be imported under this law. Additionally, the law only permits one shipment per person to be filed under this rule. Therefore, if a business does not follow this rule properly, they could face charges and penalties. CBP has launched a pilot program that allows self-filers and customs brokers to submit de minimis entries under an informal entry type known as “ACE Entry Type 86”. This new process allows for ecommerce packages entering the United States to be cleared by CBP quickly.

Faster Clearance

Getting rid of the fees and paperwork associated with international shipments can significantly improve a company’s bottom line. It can also provide a competitive edge, as it proves that you’re quick to ship products to customers. Businesses must follow certain guidelines to ensure that their imports are cleared quickly. This can include keeping shipments in a single place, ensuring they aren’t delivered multiple times in one day and verifying that they have all of the required documentation. This can be done through Section 321 customs entry, which allows the release of goods valued at $800 or less. Importers must also make sure that the shipment does not contain goods that are considered dangerous or illegal, as CBP can refuse to release them under this stipulation. In addition to removing fees and paperwork, Section 321 customs entry can save your business money. It can also allow you to save on shipping costs, which can help you grow your business in the United States.