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Take Advantage of Section 321 & Eliminate Duty Fees With ShipHero Fulfillment

ShipHero Fuflillment’s Duty Relief Program helps you eliminate duties and improve your bottom line.

ShipHero’s team will work with you to import your goods to Canada and help you determine the best duty deferral or duty drawback plan for your brand, and then, that’s it. ShipHero does the work!

With ShipHero Fulfillment You Can:

  • NSave Up to 20% on Duty Fees
  • NLower Your Landed Costs
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How Section 321 Works

It may seem crazy to think you can eliminate duty fees on imported goods, but it’s possible.

There are two major steps:

  1. First, you adjust your supply chain to ship your goods to Canada. This makes you eligible for Duty Deferrals or Duty Drawback programs, as well as Canada’s more generous Free Trade Agreements.
  2. Second, your customers in the U.S. place an order (U.S. consumers are entitled to have up to $800 USD shipped to them daily and duty-free with Section 321). Once those orders are delivered to the US customer, your duty drawback is issued.

But … How?

Here’s How it Works

1

Import your goods to Canada with ShipHero Fulfillment

  • ShipHero has 2 warehouse locations in Canada (Vancouver and Toronto) ready to receive your orders.
  • By importing your goods to Canada you become eligible for a duty deferral or drawback programs.

2

Goods are received and putaway at ShipHero Warehouse

  • Goods are received by ShipHero.
  • Products are putaway and marked into inventory so your customers can buy them.

3

Customer places an order

  • A customer places an order (of $800 USD or less).
  • Because of Section 321, U.S. customers are entitled to have up to $800 USD in goods shipped to them per day from Canada.
  • ShipHero Fulfillment Canada picks, packs and labels (with U.S. domestic final mile carriers) that order the same day.

4

Order is sent across the border

  • That same day, the order is sent across the border from Canada to the United States.

5

Order is delivered to the domestic carrier of choice

  • Once in the U.S., the order is delivered to USPS, UPS, FedEx or another domestic carrier for final mile delivery.

6

Order continues its journey and ends up with the customer

  • Domestic carrier is responsible for the final delivery to your customer.
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ShipHero + Section 321 = Savings!

How Section 321 Saves Brands Money

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Duty Fees Eliminated

By taking advantage of Section 321 and shipping from Canada, all duty fees are eliminated or reimbursed, directly impacting your bottom line.

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No Loss in Transit Time

Because ShipHero’s Warehouse locations in Canada are close to the border, we offer same-day fulfillment, so there’s no loss in transit time.

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No Increased Shipping Costs

With ShipHero, shipping from Canada to the U.S. won’t increase your costs because you’ll still be using domestic shipping rates.

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Meet Compliance and Legal Requirements

By working with ShipHero’s Fulfillment experts, your organization will handle duty elimination legally and responsibly.

 

Real Savings to Your Bottom Line

Duty fees are a variable that has to be accounted for when calculating landed costs. And different countries have different duty fees based on trade agreements that can be tricky to navigate.

However, by taking advantage of Canada’s various International Free Trade Agreements and lower duty rates, you can either lower or even eliminate the duties through Duty Relief Programs.

Here’s an example:
Import to Canada

  • One pair of shoes imported from China to Canada
  • Value for Duty: $12.00
  • Duty Rate 18%: $2.16
  • $2.16 Savings (for just 1 pair of shoes!) through Duty Drawback or Duty Deferral

Imagine getting that money back for every pair of shoes you import.

We are eCommerce Fulfillment & Section 321 Experts

If you’re ready to save money with ShipHero’s full-service Fulfillment Solution and take advantage of Section 321, we’d love to speak with you!

If you’re new to ShipHero Fulfillment, please click HERE to schedule a call with our Section 321 Fulfillment Experts today!

If you’re an existing ShipHero Fulfillment client and would like to know more about Section 321, please click HERE to contact the Support Team.

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 for the full Terms & Conditions

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