How Can Section 321 Help Your Business?

If you are a company manufacturing in Mexico, then you do not need to take advantage of this US customs policy.  But, if you plan to import goods into Mexico from Asia or other continent, and the goods are completely finished, then perhaps 321 can help your business succeed.  In fact your 3PL or fulfillment alone will save you money on most of the west coast of the USA.

An example would be a Chinese company that sells goods via amazon in the USA.  USA imposes a tariff of 20 percent on their goods.  In some situations this company can send their goods to Mexico, and then fulfill to the end user which will bypass the 20 percent tariff.  Not too mention storage and fulfillment fees are generally extensively less in Mexico in the USA so the gain to the business is substantial.

Sound too good to be true?  Its not.  That being said of course certain parameters must apply.  This is not a loophole, it is simply an advantage that can be gained under section 321.  

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1. Duty Exemption for Low-Value Shipments:

   • Section 321 exempts shipments with a fair retail value in the country of shipment of $800 or less from duty. This means that for smaller shipments, a brand can import goods without incurring customs duties, reducing overall costs.

2. Streamlined Customs Clearance:

   • Section 321 allows for expedited customs clearance procedures for qualifying shipments. This can result in quicker processing times, reducing the time goods spend in transit and minimizing associated holding and storage costs.

3. Cost Savings for E-commerce Businesses:

   • E-commerce businesses that often deal with small-value transactions can benefit significantly from Section 321. Duty-free entry for low-value shipments can enhance the competitiveness of U.S. brands in the global marketplace, encouraging international sales.

4. Reduced Administrative Costs:

   • With fewer duties and fees to calculate and process for low-value shipments, brands can save on administrative costs related to customs compliance. This includes costs associated with managing customs paperwork and ensuring accurate tariff classifications.

5. Improved Customer Experience:

   • Brands can pass on the cost savings to consumers, potentially making products more affordable for international customers. This can contribute to a positive customer experience and increased competitiveness in global markets.

6. Faster Inventory Turnover:

   • Quicker customs clearance and reduced administrative burdens can contribute to faster inventory turnover. This is particularly beneficial for businesses with perishable or time-sensitive goods.