Importing inventory can be a bad combination of expensive and stressful, but with ShipMonk’s Section 321 services, ecommerce business owners can maximize their savings while minimizing stress levels. How, you ask?
A growing ecommerce business needs to take on the globe strategically. If you have “going international” on your expanding business itinerary, Section 321 is a must. It’s one of the industry’s best-kept secrets to get through customs quickly, and save on import duties and tariffs while being 100% compliant with the United States Border and Customs Patrol (CBP). So get set; we’re about to discover the wonder of Section 321 and go over the great ways this ecommerce order fulfillment service can benefit your brand.
What is Section 321?
No one likes paying duties and tariffs, but that’s not a problem with Section 321 services! Section 321 is a US shipment type that allows ecommerce businesses to bypass the duties and tariffs that are typically associated with shipping internationally. This ecommerce order fulfillment service will let shipments quickly clear customs and save your company exponentially on import fees by going through our Mexico fulfillment center.
Benefits of Section 321
1.) Save on Import Duties
Your ecommerce business can drastically reduce or even eliminate inventory import fees for products that are a part of Section 321 CBP-compliant shipments.
2.) Optimize Freight Shipping
Like our other 11 state-of-the-art fulfillment centers, our ShipMonk’s Tecate, Mexico fulfillment center is strategically located near key transport hubs (in this case the Ensenada port and the US/Mexico border) to provide optimal profit and flexibility.
3.) Leverage Fulfillment Possibilities
In addition to the benefits that come with keeping your inventory just miles from the US/Mexico border, when you partner with ShipMonk on Section 321 services, you can take advantage of our advanced 3PL platform to quickly and accurately fulfill orders, manage your inventory and warehouse operations, and harness our integrations and automations for maximum efficiency.
4.) Pass on Paperwork
Pesky paperwork is a headache-inducing hassle that comes with shipping internationally. You don’t have to be slowed by filing the right documents or navigating government regulations though. When using ShipMonk’s Section 321 services, we handle all that for you.
Steps to Section 321 Order Fulfillment
1.) Import Your Goods
Send your inventory to the Port of Los Angeles or Port of San Diego. From there, it’s shipped to our Mexico fulfillment center where it can be stored tax-free for up to 18 months.
2.) Sync with the ShipMonk System
We all want to be on the same page for how much inventory is in the Mexico fulfillment center for international orders, so you’ll want to sync your business with our 3PL platform. This advanced tool with 75+ integration options will allow you to easily manage orders and inventory within each ShipMonk fulfillment center.
3.) Time to Pick, Pack, and Ship
Once a customer places an order that can best be filled by the international inventory in our Mexico fulfillment center, our experienced team members will pick, pack, and ship ordered items to the US, meeting your specifications (tax and duty-free).
The orders that were filled at our Mexico fulfillment center will be sent out for delivery utilizing the shipping service (ground, 2-day, etc.) that you selected. Thanks to ShipMonk’s Virtual Carrier Network (VCN), we’ll utilize the best shipping carrier option and our extensive network to ensure goods get to their final destinations as quickly and safely as possible.
How Will You Save Money?
In addition to 100% reduction on import duties and tariff fees, by utilizing Section 321 services, ShipMonk allows ecommerce business owners to save significantly on different goods as compared with what they’d pay for standard US imports. Specifically:
- +25% savings on apparel
- +20% savings on home goods
- +20% savings on electronics
- +20% savings on luggage
Who Qualifies for Section 321?
The number one qualifier for Section 321 services is that your shipment must be valued at less than or equal to $800. Additionally, you can only send one shipment to one address per day. Multiple shipments are not allowed and may be subject to a fine.
Who Doesn’t Qualify for Section 321?
Although Section 321 is an excellent choice for most ecommerce businesses, there are a few exceptions. Section 321 does not apply to goods that are:
- Subject to Anti-Dumping Duty (ADD)
- Subject to Countervailing Duty (CVD)
- In need of special **required** inspection
- Regulated by Participating Government Agencies (PGAs), like the Food and Drug Administration (FDA) and the U.S. Department of Agriculture (USDA)
How to Claim Section 321
Naturally, this process is easier when you partner with a 3PL like ShipMonk. However, whether you are attempting Section 321 on your own or are enlisting the aid of our specialized Mexico fulfillment center, claiming Section 321 requires the party involved to submit an eManifest specifying that a US shipment is on its way. This eManifest includes:
- Type of good(s) in the shipment
- Quantity of products being shipped
- Origin of shipment
- Total value of shipment
- Shipping consignee (who is financially responsible for receiving the shipment)
Importing in an Affordable Way
Don’t stifle your company’s global growth; scale with an international fulfillment partner. Utilizing Section 321 services and our Mexico fulfillment center can open up a huge, profitable market for you. As mentioned, as long as shipments are valued under $800, Section 321 gets you 100% reduction on import duties and tariffs. Additionally, our Mexico fulfillment center is optimally located just a few miles from the US border so your orders reach customers quickly.
As ShipMonk has expanded across the US and internationally to Canada and two branches in ShipMonk Europe, we’ve strategically located all our fulfillment centers near key borders and ports so your shipments reach their destinations as fast as possible.
Are you ready to get started with Section 321 or ShipMonk in general? Contact us today to learn how our order fulfillment services can help your ecommerce business go global as efficiently and profitably as possible!