Duty Free US Ecom Fulfillment From Canada

The world of high-touch e-commerce fulfillment is a costly endeavour for any brand as consumers expect faster turnaround on their purchases in parallel with competitive retail prices. How can a brand strike such a balance? Through partnering with a 3rd Party Logistics provider well-versed in Section 321 of the US Customs Act & Canadian Duty Relief Program, like a52 Fulfillment, to implement Duty Free US Ecom Fulfillment from Canada.

Section 321 of the US Customs Act & Canadian Duty Relief Program are two independent programs from the United States & Canadian governments that when utilized together, can yield significant savings for brands with high duty rates fulfilling e-commerce for US consumers.

Section 321 of the US Customs Act is an amendment to Tariff Act of 1930 and at its core is the limit of which an order can enter the US duty & tax free. In 2015, this limit was increased from $200 to $800 USD, which covers the majority of consumer e-commerce orders for most brands.

In Canada, the Canadian Duty Relief Program allows companies to defer payment on duties for upwards of four years on inventory that’s shipping internationally. Effectively, this allows your distribution center to act like an FTZ or bonded facility without the inventory segregation. This program benefits both the company as well as the Canadian Customs as it alleviates duty drawbacks which are a costly and lengthy process on both ends.

Major US retailers and brands are already securing tens of millions in savings right to the bottom line. If you’re interested in learning more about pick & pack e-commerce fulfillment to the US from Canada, reach out to a 3rd Party Logistics Expert at a52 Fulfillment today.