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De minimis Shipping and Section 321 Customs Entry

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Having efficient shipping processes can be a huge advantage for businesses that want to save money and secure profits. Moreover, it can help speed up the delivery of goods to customers.

US Customs and Border Protection (CBP) has revamped its Automated Commerce Environment (ACE) platform to make it easier for shipments to be cleared quickly. This has helped many cross-border fulfillment providers save money and time on the processing of section 321 customs entry.

De minimis shipments

De minimis shipments are low-value goods that are eligible for section 321 customs entry. These shipments are exempt from taxes and duties, which helps businesses to gain access to the lucrative import market without the hassle of dealing with expensive fees and paperwork.

These shipments also help businesses to expand their business by enabling them to clear large volumes of low-value products. In fact, a recent study showed that de minimis shipments topped 771.5 million packages in the United States in fiscal year 2021.

Despite the benefits, de minimis shipments also pose challenges for businesses. For one, many partner government agencies (PGAs) do not provide exemptions from their respective requirements based on value, which can make it difficult for businesses to comply with these rules.

Another challenge is that the Section 321 de minimis value threshold is limited to $800 per day, which means that only a small number of shipments are eligible for the de minimis status. This can mean that companies are unable to take advantage of the de minimis status as often as they would like.

Automated data submission

The escalating volume of ecommerce shipments has put a lot of pressure on freight forwarders and customs brokers to streamline operations and boost the bottom line. This is particularly true for small-package ecommerce goods, which are processed as low-value, Section 321 Type 86 entries.

To maximize the potential of these shipments, it is essential to adopt the right solution that automates data submission and consolidates ACE EDI files for your high volume shipments. This will ensure faster clearance, reduce errors and costs, and enable your business to provide a streamlined customer experience.

ACE eManifest solutions from GeTS, a CBP-approved IT partner, make data integration easy and automated. This solution offers round-the-clock support and allows you to upload data via online, fax or email, or through current in-house systems integrated with the CrimsonLogic GeTS ACE EDI application.

Reduced bureaucracy

Bureaucracies can create inefficiencies, stifle innovation, and hinder the ability to respond to market trends. These inefficiencies can make businesses more rigid, less agile, and more likely to fail than those with an efficient operation.

Historically, governments have attempted to reduce bureaucracy by downsizing, reorganizing, and simplifying procedures. Under Presidents George Bush and Bill Clinton, federal agencies were systematically examined to identify areas that could be improved.

The results of these reviews have brought annual administrative burdens down by 12.3 billion euros – a 25% reduction since 2006. This has helped free citizens, businesses and administration bodies from compliance costs.

Section 321 customs entry is a great way for eCommerce brands to save money on shipping logistics, but it’s important to note that this de minimis exemption only applies to goods valued at less than $800. It’s also limited to one shipment per day, so if you’re shipping multiple products it may not be right for you.

Compliance requirements

Section 321 customs entry allows businesses to ship goods worth less than $800 in a single day, duty and tax free. This can be a significant financial boost to businesses who are experiencing temporary spikes in sales.

While section 321 customs entry provides a valuable solution for many e-Commerce businesses, it does come with its own set of compliance requirements. As such, it is important to know how to properly file your shipments and avoid any penalties or delays down the road.

The CBP is currently running a pilot program to streamline import data collection. The pilot aims to improve border security while also allowing CBP to more easily identify high-risk shipments that require examination upon entry.

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