Duty-Free Import with Section 321

Section 321 fulfillment FAQs

• What is Section 321?

  Section 321 enables ecommerce businesses to ship directly to consumers while avoiding significant duties and taxes typically incurred with international shipping. By leveraging ShipMonk’s Mexico or Canada fulfillment centers, businesses can streamline customs clearance and dramatically reduce import fees.

• Is Section 321 fulfillment legal and compliant?

  Yes! Our Section 321 services are 100% compliant with the United States Border and Customs Patrol (CBP).

• What are the benefits of Section 321 fulfillment?

  Importing inventory can be both costly and complex, but ShipMonk’s Section 321 services help ecommerce businesses save more while reducing hassle. By using these services your brand can:

  • Drastically reduce or even eliminate inventory import fees for products that are a part of Section 321 CBP-compliant shipments.
  • Benefit from our experts taking care of filing the right documents and navigating government regulations so you don't have to.
  • Take advantage of optimized freight shipping via ShipMonk’s Mexico and Canada fulfillment centers, which are strategically located near key transport hubs and the border.
  • Harness ShipMonk's advanced 3PL software to quickly and accurately fulfill orders, manage inventory and warehouse operations in a one-stop-shop platform, and utilize integrations and automation for max efficiency.

• Does Section 321 eliminate duties and tariffs?

  With Section 321 services, ShipMonk almost entirely eliminates US import duties and tariff fees for ecommerce merchants.

• How does Section 321 work?

  After manufacturing, ecommerce businesses simply import their overseas inventory to ShipMonk’s Mexico or Canada fulfillment center. The inventory syncs with ShipMonk’s 3PL platform so stock levels are always visible and updated. When an order for your brand comes in that can best be filled by the MX or CA facility, our trained team picks, packs, and ships it to the US. From there, your customers receive their orders without any import taxes or fees, just like a regular domestic shipment.

• Is Section 321 fulfillment safe?

  The ShipMonk Mexico and Canada facilities that handle Section 321 fulfillment are massive, clean, and secure. It’s just like all of ShipMonk’s US fulfillment centers, totally operated by us exclusively for our clients. With security guards, perimeter checkpoints, alarm systems, and high employee standards, business owners can rest easy knowing their goods are secure.

• Are there any restrictions when using Section 321 fulfillment?

  There are a few restrictions when utilizing this service. Shipments must be valued at less than or equal to $800. Companies can only send one shipment to one address per day. Multiple shipments per day are not allowed and may be subject to a fine. Additionally, 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)

• What types of businesses can use and benefit from Section 321?

  Every kind of ecommerce brand that imports from overseas manufacturers and does business in the US can benefit from Section 321 because of the massive reduction on import duties and tariff fees. At a glance, here are just some additional saving averages broken down by a few key classes of goods:

  • +25% savings on apparel
  • +20% savings on home goods
  • +20% savings on electronics
  • +20% savings on luggage

• How do I integrate my store for this fulfillment opportunity?

  Simply sync your business with ShipMonk’s 3PL platform to ensure all your inventory is up to date; that way orders fulfilled out of our Mexico or Canada facility are accounted for. This advanced tool with 100+ integration options will allow you to easily manage orders and inventory in Mexico or Canada AND all other ShipMonk fulfillment centers.

• Where does Section 321 fulfillment take place?

  Section 321 is operated out of ShipMonk’s state-of-the-art Mexico or Canada locations— secure facilities just miles from the US border.

• Where are the Mexico & Canada facilities located?

  ShipMonk Tecate, Mexico is located at:
  Calle Los Olivos No. 6500 Int. 1-F
  Parque Industrial El Bajio
  Tecate, B.C, Mexico, C.P. 21503

  ShipMonk Toronto, Canada is located at:
  1 Hereford St., Suite 20
  Brampton, L6Y 0B3, Canada

• What do the Mexico and Canada facilities look like?

  All ShipMonk facilities are huge, secure, organized spaces where your goods are optimally slotted for efficient order fulfillment. These spaces combine the best ecommerce order fulfillment technology and automation with the care of our experienced 3PL team members to pick, pack, and ship goods 4X faster than the industry average with 99.9% accuracy.

• If using Section 321, what port do I import my goods to?

  Like our other state-of-the-art fulfillment centers, ShipMonk’s Mexico and Canada fulfillment centers are strategically located near key transport hubs. When using our Section 321 services for Mexico, you would send your goods to the Ensenada port in Mexico just a few miles from our facility and the US/Mexico border. When utilizing our Section 321 services for Canada, you would ship your inventory to the Port of Vancouver if coming from Asia or the Port of Toronto if coming from Europe. This allows your goods to reach customers quickly, thus increasing satisfaction and decreasing shipping times.

• Are Mexico and Canada the only places I can use Section 321?

  Currently, ShipMonk’s Mexico and Canada facilities are the main hubs for Section 321 services.

• How hard is it to get my goods to ShipMonk Mexico or Canada?

  It’s not hard at all! Just coordinate with your manufacturer to have your selected number of SKUs sent to our Mexico or Canada facilities the same way you would have it sent to any of our other fulfillment centers, which are all privately operated by ShipMonk specifically for our direct clientele, unlike a 4PL setup.

• How often can my business use Section 321?

  If you qualify for Section 321 fulfillment, your brand can continually use the service as long as each shipment is valued at less than or equal to $800. The one stipulation is that brands can only send one shipment to one address per day. Multiple shipments per day may be subject to a fine.

• How do I declare Section 321 on my goods/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 or Canada fulfillment centers, claiming Section 321 requires that the party involved submit an eManifest specifying that a US shipment is on its way. This eManifest must include:

  • Type of good(s) in the shipment
  • Quantity of products being shipped
  • Origin of shipment
  • The total value of the shipment
  • Shipping consignee (who is financially responsible for receiving the shipment)

• Will Section 321 shipments have slower transit times?

  Quite the contrary, when you manufacture overseas, using Section 321 services will allow your goods to reach US customers much faster! Once goods are sent from our Mexico or Canada facilities to one of our US fulfillment centers we’ll use ShipMonk’s extensive network of shipping carriers and services to optimize your delivery times. The average delivery time from when a package leaves the facility in Mexico or Canada to when it reaches the end customer is typically between 3 to 6 days

• Does Section 321 fulfillment increase my shipping costs?

  The exact opposite. Your ecommerce business can drastically reduce or even eliminate inventory import fees for shipped products that are a part of Section 321 CBP-compliant shipments. Our ecommerce clients who manufacture internationally see an average tax savings of 25% when shipping goods to the US through Section 321.

• How does Section 321 affect imports from China?

  Goods being imported from China fall within Section 321. While trade with China is often in flux in terms of specifics, at present, Section 321 overrides Section 301, which is a regulation that typically sets tariffs on shipments coming from China.

• How can ShipMonk help my business get started with Section 321 fulfillment?

  If your brand has everything it needs to be a thriving global business but is being held up by costs and complications caused by manufacturing overseas, ShipMonk can help you “stress less and grow more,” as our company mantra dictates. We can set you up with this easy and affordable way to tackle international imports. Section 321 is a reliable and legal way to manage international importing costs that has made a huge difference in the bottom line of the brands we’ve helped harness it. Contact one of our client support Happiness Engineers today to begin eliminating import taxes, duties, and customs complications with our premier order fulfillment services.

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