Exporting Duty-free to the US under Section 321

E-commerce has become the new way of shopping, and with each day, small packages cross the US-Canada border, reaching millions of eshoppers. In 2019, the US imported $319.4 billion in Canadian goods, and the value from cross border ecommerce retail is increasing by the minute. Here is how Canadian companies and their US customers can eliminate all import duties and taxes under the American trade law, Section 321, also know as De Minimis Value Entry.

Section 321 in a Nutshell

For an American to qualify for the exemption of duties, often referred to as Section 321, your shipments must be worth $800 USD or less. The original law allowed a maximum De Minimis threshold of $200 until a $600 increase was established in February 2016 with the Trade Facilitation and Trade Enforcement Act (TFTEA). The shipments must be imported by one US consumer on a single day. In other words, section 321 only allows to one duty-free shipment of $800 or less shipped to one US consignee per day.

Filing for Section 321

Your De Minimis shipment can enter the US without formal entry or eManifest filing. And if you have more than one low-value shipment, they cannot be consolidated if the total value exceeds $800. However, if a carrier exports merchandise to the US and only some qualify for section 321, then an eManifest is required for each shipment.
To file for section 321 on an eManifest, you must:

• select the section 321 shipment type on the ACE eManifest;
• have a shipment control number (SCN);
• state the following: shipper, value of goods, commodity, and country of origin; and
• submit the eManifest to the US CBP.

No entry number will be provided by the US CBP since your shipments enter the US without formal entry.

Products that qualify and are exempt from De minimis Value Entry

Since July 2017, these goods can be shipped to the US duty-free:

• beauty products
• tableware
• coffee and tea
• non-medical, radiation-emitting devices
• biological samples for laboratory testing
• dry foods (excluding ackees, pufferfish, raw clams, raw oysters, raw mussels, and foods packed in airtight containers stored at room temperature

However, the following goods cannot enter the US under section 321:

• products that require inspection for release, regardless of their retail value
• goods subject to Anti-Dumping Duty (ADD) and/or Countervailing Duty (CVD)
• products regulated by the following Participating Government Agencies (PGA):
  • Food and Drug Administration (FDA)
  • Food Safety Inspection Service (FSIS)
  • National Highway Transport and Safety Administration (NHTSA)
  • Consumer Product Safety Commission (CPSA)
  • US Department of Agriculture (USDA)

Let us handle your U.S. order fulfillment from Canada

With our various Canadian warehouses and our order fulfillment experts, we can help you fulfill orders and ship to your US customers from Canada saving you huge amounts on duties and taxes. Speak with one of our representatives today who will guide you through the process.
Contact us and find out how we can help you with your section 321 inquiries.