ShipHero Fulfillment is Making it Easy for US Brands to Save Money Shipping From Canada
ShipHero Fulfillment is proud to announce that we can now help eCommerce brands save money by taking advantage of Canada’s Duty Deferral and Duty Drawback programs and USCBP’s Section 321. When combined with our fulfillment expertise, this will directly impact brands’ bottom lines and save them money – often as much as 20%!
What is Section 321?
Section 321 is a law that is part of the US Customs and Border Protection. It allows for individual US customers to purchase goods up to $800 USD per day and have it shipped from Canada into the United States duty free.
How This Helps Brands
Canada incentivizes eCommerce brands to import their products through Canada by offering duty deferral and duty drawback programs. These programs reimburse or waive all duty fees paid on imports. This can result in a lowered landed costs of up to 10-20%!
How Section 321 Works
An eCommerce company that imports products from overseas would normally have them shipped from their country of origin and then sent to the United States. Once they arrive in the United States, they will be subject to customs review and import fees.
In recent years, these import fees (duties) have increased when importing goods from certain Asian countries. For example, shoes imported from China have a duty of 48%. The same shoes when shipped and imported in Canada have a duty of anywhere from 0-20%. Huge savings!
Obviously, just this savings alone would be enough justification for brands to take advantage; however, all duties paid in Canada can be submitted for deferment – which in this case means reimbursement.
So, any duties paid on these shoes from China sent to Canada would be reimbursed. Yes!
Why Section 321
It may seem like adding an extra step to the fulfillment process could cause trouble, especially with customers and their shipping expectations. If that savings isn’t enough, here are the other reasons why to use ShipHero Fulfillment with Section 321:
- No impact to shipping timelines
Due to ShipHero’s warehouse locations in Canada that are near two of the largest cities in the country, products can still be sent in a timely manner to anywhere in the U.S.
- Port congestion relief
U.S. Ports are still feeling the squeeze of Q4 2021. Canadian ports in general have more room, meaning there will be less delay in receiving your products and getting them to the warehouse.
- Better international relations
Canada has forged less contentious relationships with many Asian countries that eCommerce brands rely on for their products.
- Canada and the U.S. have a strong relationship
It is possible to use Section 321 by importing goods to Mexico as well. However, relations between the U.S. and Mexico tend to be more strained than relationships with the U.S. and Canada.
Why ShipHero Fulfillment is the Answer to Section 321
We are your top choice for Section 321 because ShipHero Fulfillment is going to do all the work for you! Filing custom forms, distributing inventory, fulfilling and shipping orders from Canada to the U.S., ShipHero will handle all of these steps. In short, clients get the benefit of saving money, and the same turnaround time just for using ShipHero. Yes!
On top of that, clients get ShipHero’s full-service Fulfillment Solution with easy-to-understand pricing, including no zone shipping rates in the U.S., no hidden fees and best-in-class onboarding.
“We knew as soon as we brought these Canadian facilities on board, that we could directly help our clients save money,” Aaron Rubin, Founder and CEO of ShipHero said. “This type of savings can have a significant impact on eCommerce brands of all sizes. That’s why ShipHero is willing to do what amounts to a lot of paperwork. Because we know brands will save.”
ShipHero Fulfillment is the Full-Service Solution Clients Need
With supply chain woes still plaguing the industry and inflation on the rise, any type of cost-savings in the eCommerce industry is a necessity. ShipHero Fulfillment clients will easily get ahead of their competition by taking advantage of ShipHero and Section 321 today.
If you’re new to ShipHero Fulfillment, please schedule a meeting today with our fulfillment experts to learn more about how we can help you get your orders picked, packed, and delivered with our fulfillment service. No setup fees, simply pay as you go. ShipHero works to ensure that organizations invest in the solutions that match their needs, to improve productivity, revenue, and success.
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Disclaimer: This page is solely for informational purposes and does not constitute legal advice. Programs are regulated and approved by the Canada Border Services Agency (CBSA) and U.S. Customs and Border Protection (CBP) and are subject to change. Please click HERE to read the full Terms & Conditions.