How to Use Section 321 as Your Competitive Advantage

Section 321
November 16, 2020
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Since the introduction of President Trump’s import tariffs, it has become extremely expensive to import Chinese goods into the country.

While this may not sound like a huge issue for individual citizens, it is having a serious impact on small businesses across the nation — which is affecting the economy in a negative manner.

See, over the last decade, numerous American businesses have made a profit by importing high quality Chinese goods at a very low price point. They then sell them onto consumers at a slightly higher price point.

Which is a pretty savvy business model, if you ask me.

However, as any small business owner will tell you, the recent import tariffs have made this significantly more challenging. This has consequently increased the cost of various goods across the nation, reducing consumer spending.

All of which has obvious implications for those small businesses, while simultaneously having downstream effects on the American economy.

But never fear, because we have found a solution.

The Section 321 Advantage

How to Use Section 321 as Your Competitive Advantage 1

Source: https://unsplash.com/photos/66NaCdBrkCs

Many people remain unaware that US customs will allow the importation of goods with a fair retail value of less than $800 into the country if that shipment is imported by one person on a single day.

These shipments are commonly known as Section 321 shipments, and they offer the key to avoiding import tariffs as a small business.

However, there are a couple of things that do need to be considered when seeking classification as a Section 321 — with the big one being that you cannot simply order more than 800 USD worth of goods and then break it up into smaller shipments.

Multiple orders (collectively valued at 800 dollars or more) that come from the same location, under the same order number, or are being delivered to the same person, cannot be classified as a Section 321.

Over the last couple of years small businesses have found a way to work around this.

In fact, since the rise of the recent pandemic, the use of this particular exemption has rapidly skyrocketed as American consumers become increasingly reliant on e-commerce businesses to purchase products.

And now you can do the same.

Canadian Fulfillment and Section 321

How to Use Section 321 as Your Competitive Advantage 2

Source: https://unsplash.com/photos/C2keINMOhIE

Since the introduction of Trump’s tariffs people have been trying to establish a way to reduce the cost of importing goods from China — because, if they manage to do it successfully, it means they can keep their business afloat.

Which is the entire reason why Canadian fulfillment companies entered the market.

Canadian fulfillment companies provide a service that removes import tariffs and duties by using Section 321 to the advantage of small businesses. 

These companies are located in Canada but have distribution centers quite close to the US border. And you can organize to have your large shipments of Chinese goods delivered straight to them.

Once they have received them, they break up your order into individual items and ship them to customers on your behalf under the Section 321 classification — completely eliminating import tariffs in the process.

As a small business owner, this can have an extremely positive effect on your business.

Before anything else, this allows you to get your products at a lower price. These savings can then be passed onto your consumers. Over time, this can cause a significant increase in your business growth — leading to a substantial increase in net income.

All of which means more money in your pocket in the long run.

And before you ask, YES, I can confirm that this entire process is completely legal.

While it may seem like a questionable way to navigate import tariffs, there is nothing deceptive about it. As such, you can be certain that you are not doing anything wrong by seeking Canadian fulfillment.

Canadian Fulfillment Companies

How to Use Section 321 as Your Competitive Advantage 3

Source: https://unsplash.com/photos/0h-Kc2-wZt4

The big thing I want to touch on here is that when it comes to selecting a Canadian fulfillment company, you need to do your research, because some are much better than others.

The following companies are some of our favorites:

Stalco

Our company of choice is honestly Stalco.

These guys have been in the industry since 2018, have a distribution center that is merely 90 minutes away from the Canadian-American border, and have a same day fulfillment policy, which ensures your customers receive their orders in a timely manner.

They also have a bunch of positive reviews from customers, which should fill you with confidence.

InterFulfillment

Interfulfillment is another Canadian fulfillment company that focuses on improving your customer service experience.

When you organize a contract with InterFulfillment, you get allocated a manager. This means that one person will address all your needs directly, and that you have a direct line of communication if any issues need to be addressed.

As a bonus, they also offer personalized software integration with your business, which means that you can sell your items through your normal methods and they will receive them automatically.

Of course, you have to pay extra for those niceties. While this does come at a higher cost, it does provide a sense of assurance that some other companies simply cannot provide. 

ShipHype

Lastly, we have ShipHype

This is another Canadian-based company that has made a splash in the industry of late.

Like Stalco, they provide a service solely designed for American companies (large and small) that get their products from overseas, and are paying too much on import tariffs as a result.

ShipHype offers 2-day shipping to 95% of people located in the USA.

Final Remarks

The important tariffs introduced over the last few years have wreaked havoc with small businesses across the country. This has negatively affected consumer confidence in the market, causing a substantial decline in spending.

But no more.

With the inception of Canadian fulfillment companies, you can now get your imported goods classified as a Section 321. This slashes the cost of importation, putting money in your pocket and increasing the success of your business.

And of course, when you are choosing a Canadian fulfillment company, make sure you do your due diligence. You do not want the fulfillment process impacting your business in a negative manner rather than a positive one.

 

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Nyago Michael Emmanuel

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