Canadian Fulfillment: An American Shipping Strategy

Would you like to save big money bringing goods into the United States? You can. With one simple strategy: Section 321. Let’s look at how this small statute can have a huge impact on your tariff costs.

Want to Bring Shipments into the U.S. for Free?

If you’ve got a company that sources goods from across the world you probably know a few things: duty rates vary according to both country and products, and these costs can be significant. And if you import from China into the United States, well, there’s a good chance you’ve been hit by increased tariffs caused by the recent trade tensions between the two countries.

But a Section 321 solution can help you steer clear of the ramifications of the US-China trade war, even if you’re bringing goods into the U.S. How? There’s a handy little statute named Section 321. It allows you to bring goods into the United States for free (really, like free for free). With some caveats — one big rule is that a shipment can’t have a value of over $800 to qualify for Section 321 status. But you buy in bulk, right? So how can a bargain on small shipments help you?

The Strategy of Thinking Small

The problem that you and many businesses face is that they simply can’t buy large quantities of products from around the world and ship them to the United States at affordable rates. The US tariffs at the border are just too high. But Canadian tariffs are much more reasonable, even considered cheap compared to US rates. 

So the answer is clear: you buy goods at low prices and then ship those goods in bulk to Canada. With your shipments safely stored in Canada, a Canadian fulfillment company can then separate the loads into smaller shipments that are valued at under $800 in order to bring them across the border into the United States. From there, a US shipping carrier can bring the goods to you.

True, you won’t get all of your goods at once. And there are some basic rules and protocols that need to be followed, but these small hurdles are more than worth the while given the amount of money you’ll save by not paying US tariffs. If that shipment volume and pace works for your business, you’ve got yourself a great strategy. That is if you find the right Canadian fulfillment company to handle your Section 321 needs.

What Should You Look for in a Canadian Fulfillment Company?

Proximity to the border is one good criterion. Section 321 experts like Stalco that are located close to the US-Canadian border are a good choice to get your goods into the U.S. more rapidly. Plus going with a long-established company is also a good plan as they have long-standing relationships with the major carriers in the U.S. for delivery south of the border.

A Few Things to Keep in Mind

To be sure that a Section 321 strategy is right for you, you should do a little homework. If the goods you’re bringing in require an inspection by customs before they enter the country, they do not qualify for Section 321 status. Nor can you get 321 clearance for goods that are regulated by a few different US agencies. These include the U.S. Department of Agriculture, Food and Drug Administration, and the Consumer Products Safety Commission, to name a few. But a good Canadian fulfillment company can handle all of these details.

So, stop paying high tariffs at the US border. Start saving with a Section 321 strategy.