One of the many reasons our customers love partnering with us is our ability to help them master Section 321. And no, it's not just international or Chinese brands that can take advantage of this provision. In fact, our CEO Izzy Rosenzweig frequently discusses how American brands can benefit from De Minimis. So, how can you determine if Section 321 is right for your business? Here are a few indicators: ???If you're already selling to U.S. customers As an e-commerce or DTC brand primarily shipping to the USA, you might be paying duty fees that could be avoided. Some of our customers have saved up to 15%-20% in tariffs and duties by leveraging Section 321. ???If most of your customer orders are under $800 To benefit from De Minimis, the value of each item(s) must be $800 or less. As long as your customer orders fall within that threshold, you qualify to utilize Section 321. Keep in mind that some items are exempt from Section 321, such as products requiring inspection, those subject to Countervailing or Anti-Dumping Duty, items regulated by agencies like the FDA, and cigarettes or alcohol. ???If you're looking to save money on taxes and duties Import taxes and duties for American brands can range from 5%-20%, and for apparel, they can go as high as 30%-40%. That’s a significant amount of money that could be reinvested into your business. De Minimis can effectively eliminate these extra costs, benefiting not only larger enterprises but also SMBs. ???If you're looking for faster shipping and clearance into the U.S. Section 321 shipments require minimal customs paperwork, resulting in a much faster clearance process. As long as your goods comply with the rules and regulations, your packages will be approved quickly, ensuring they reach your customers faster. Interested in learning more? Check out a full breakdown here: https://lnkd.in/gfkwMRpf
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Join UPS, U.S. Commercial Service and World Trade Center Denver for this FREE, in-person event on Wednesday, April 10 ?? #ECOMMERCE #LOGISTICS: SMB GROWTH AND CROSS-BORDER TRADE Registration required ? https://lnkd.in/gJiAXe7y Engage with industry-leading supply chain logistics experts to acquire valuable insights on scaling your business through e-commerce and international trade. ? Navigating Cross-Border E-commerce Logistics Hurdles ?? ??Regulatory Compliance: Each country has its own set of regulations governing imports, exports, and ecommerce transactions. These regulations may include restrictions on certain products, packaging requirements, labeling standards, and compliance with consumer protection laws. ??Customs Duties and Import Taxes: Cross-border ecommerce shipments are subject to customs duties and import taxes imposed by the destination country. The calculation of these duties and taxes depends on factors such as the declared value of the goods, the product category, and any applicable trade agreements. ??Tariff Classification: The classification of goods for customs purposes can be a complex process, as products are assigned specific tariff codes that determine the applicable duty rates. Ecommerce sellers must accurately classify their products to ensure compliance with customs regulations and avoid potential penalties or delays in clearance. ??Shipping Costs and Timeframes: Shipping costs and delivery timeframes vary depending on the shipping method, carrier, destination country, and package dimensions. Ecommerce businesses must carefully consider these factors when determining shipping options for cross-border orders. ??Address Verification and Format: Validating international addresses and ensuring they are formatted correctly according to local standards is essential for successful delivery. Incorrect or incomplete address information can lead to delivery failures and additional costs for ecommerce sellers. ?? Please don't hesitate to comment, like, or share with your network those who might benefit from this event. Also, feel free to contact me via LinkedIn InMail or send me an email at [email protected]
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Key Factors That Determine De Minimis Thresholds When it comes to international shipping for your ecommerce business, understanding the factors that determine de minimis thresholds is undoubtedly crucial. These values are not randomly assigned and actually rely on several key elements. The variability of de minimis thresholds across different countries can significantly affect your import costs and, subsequently, the final price of your goods.? The Country's Customs Regulations?? Each country has its own?rules and regulations regarding importation, which distinctly influence the de minimis thresholds. Some countries have a high threshold to encourage foreign trade and facilitate smoother transactions, while others maintain a low value to protect local industries or collect import duties.? The Type of Goods Imported?? The de minimis value can also be dependent on the type of goods. For example, import of certain items like alcohol, tobacco, or items which a country deems sensitive, may have a lower or no de minimis value applicable. On the other hand, goods classified as personal effects or low-value items typically enjoy higher thresholds.? Trade Agreements?? Countries part of major trade agreements often have similar or matching de minimis thresholds. These agreements aim to simplify trade between member nations, creating a uniform environment for ecommerce businesses.? Government Policies?? Policy is often what determines the de minimis threshold. For instance, in times of economic uncertainty, a country may decide to lower its de minimis value to safeguard local businesses and boost domestic revenues through increased import duties.?
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Buying goods online coming from a non-European Union country just made easier for people. Ordering goods online that are dispatched from a non-EU country When you buy a product from a non-EU country, VAT is payable on your purchase irrespective of the value of the goods. In addition to VAT, you may also have to pay customs duties for goods above €150 and excise duty for specific goods. If the terms of sale do not specify another arrangement, the goods can be held by the customs authority at entry, pending the payment of duty and tax, amongst other reasons (if the goods are prohibited in the EU, for example). Customs duty is not due for goods, provided directly to the buyer when their value does not exceed €150, excluding transport and insurance costs. This relief does not apply to perfumes and toilet waters, tobacco or tobacco products and alcoholic products which are subject to special duty-free limits on the quantity provided. https://lnkd.in/dzJVPRin #innovation #management #technology #creativity #futurism #startups #marketing #socialmedia #socialnetworking #digitalmarketing
Buying goods online coming from a non-European Union country
taxation-customs.ec.europa.eu
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The end of the import duty exemption for #eCommerce orders below €150 in March 2028 means businesses will need to adjust to new #VAT rules, which could increase costs and administrative tasks for importing goods into the #EU ??. This change aims to create a level playing field and ensure fair competition. Preparing for this shift is crucial for maintaining compliance and managing expenses effectively: https://lnkd.in/d9iWcUni
Exemption on import duties to end in 2028
https://ecommercenews.eu
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Full credit to Miles Vartan for this excellent piece on the likely reduction to the LV De Minimis Exemption for shipments entering the USA. Shippers will need to consider this, especially in the eCommerce landscape. If you're shipping to the US and need guidance on making this work for your company, please do get in touch #ecommerce #exporters #importers
Thought Leader in Customs Compliance & Risk Management. On a Mission to Make Business Simpler & Easier and Improve Commercial Performance for Import/Export Manufacturers, Freight Forwarders and Logistics Companies.
?? U.S. Tightens Regulations on Low-Value DTC Shipments Under $800 De Minimis Exemption ?? Major changes are coming for all e-commerce businesses shipping direct to U.S. consumers under the $800 de minimis threshold. For years, this exemption has allowed duty-free imports for small packages, but recent steps by the Biden administration signal a significant shift. ?? Key Updates: - The U.S. is denying duty-free exemptions for goods subject to tariffs (Section 301, 232, 201), impacting items like textiles, steel, and solar panels. - Enhanced screening for illicit products like precursor chemicals for fentanyl. - New disclosure requirements for packages under $800, including product tariff codes, to streamline U.S. Customs and Border Protection's identification of risky imports. ?? Why Now? Since 2015, when Congress raised the de minimis exemption to $800, low-cost imports—especially from platforms like Shein and Temu—have surged. In 2023 alone, over 1 billion packages entered the U.S. under this exemption. The reform is driven by fairer competition concerns, as U.S. manufacturers, especially in textiles, claim the system unfairly favours untaxed imports. ?? Impact on Businesses: - Tariff enforcement will now affect previously exempt goods like clothing, steel, and more, leading to significant pricing changes for sellers. - Increased compliance costs for overseas platforms, potentially disrupting their low-cost, fast-shipping business models. - Better regulation of goods aims to target unsafe imports and level the playing field for U.S. manufacturers. ?? What’s Next? These new rules are still open for public comment, but businesses need to prepare now. Importers may face delays, pricing adjustments, and greater scrutiny on shipments. Is your e-commerce business ready to navigate this new regulatory landscape? Now is the time to adapt your strategy, explore new logistics options, and ensure compliance. #ecommerce #exporters #importers
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Certificate of Origin (COO): *Definition:* A document verifying the country of origin of goods, issued by a recognized authority or organization. *Purpose:* 1. Confirms goods' origin for customs clearance 2. Supports trade agreements and tariffs 3. Ensures compliance with regulations 4. Facilitates international trade *Types:* 1. Non-Preferential COO: General COO for all exports 2. Preferential COO: For goods eligible for reduced tariffs under trade agreements (e.g., NAFTA, EU) 3. Electronic COO (e-COO): Digital version *Key Components:* 1. Exporter's name and address 2. Importer's name and address 3. Goods description (HS code, quantity, weight) 4. Country of origin 5. Certificate number and date 6. Issuing authority's signature and stamp *Issuing Authorities:* 1. Chambers of Commerce 2. Export councils 3. Government agencies (e.g., customs, trade ministries) 4. Authorized private companies *Benefits:* 1. Simplifies customs clearance 2. Reduces tariffs and duties 3. Enhances trade compliance 4. Supports supply chain transparency *Example:* *Certificate of Origin* *Exporter:* ABC Textiles, USA *Importer:* XYZ Garments, Canada *Goods:* Cotton fabrics (HS code 5209.42) *Country of Origin:* USA *Certificate Number:* COO-2024-001 *Date:* 2024-09-25 *Issuing Authority:* US Chamber of Commerce *Image Example:* [Insert image of a Certificate of Origin document] *Requirements:* 1. Accurate goods description 2. Verified country of origin 3. Compliance with regulations 4. Authentication by issuing authority *Digital Certificates:* Many countries now issue electronic Certificates of Origin (e-COO), streamlining the process and reducing paperwork.
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Big changes coming to the #eCommerce industry. Here's what you need to know ??: On Sept. 13, 2024, the Biden administration announced proposed changes to reform Section 321. #Section321 or the de minimis program allows shipments valued at US$800 or less to enter the U.S. duty-free with minimal import documentation, when imported by one person in one day. A key reason for the exemption is that the cost of administering the laws of small imports exceeds the benefits of taxing the goods and requiring formal entry. Over the past decade, de minimis shipments has increased from $140m to more than $1b annually. The reform could impact up to 40% of all U.S. imports, including 70% of textile & apparel from China. The proposed reforms to Section 321 of the Tariff Act are complex, but here are the key points you need to know: 1. Tightening the $800 De Minimis Rule:? - Goods subject to Section 301 (China tariffs), 201 (safeguard), and 232 (steel and aluminum) duties may no longer qualify for duty-free entry. 2. Increased Data Requirements: - Importers will need to provide 10-digit tariff classifications & identify who's claiming the exemption. 3. Stricter Safety Regulations: - The Consumer Product Safety Commission will require Certificates of Compliance for all imports, including low-value shipments. 4. Possible Textile Exclusion:? - Potential exclusion of textile products from the exemption (not explicitly proposed but mentioned). For e-commerce businesses, this means: - Higher costs for previously duty-free items - More complex customs processes - Possible supply chain disruptions Looking ahead.. Here's how I see the industry evolving: 1. Diversified Supply Chains: Businesses will spread their risk by sourcing from multiple countries. We’ve seen a big growth of B2B marketplaces over the last 5 years which may start to see further growth. 2. Rise of Nearshoring: We'll likely see more companies moving production closer to home. This could reshape global manufacturing landscapes and create new regional hubs. 3. Tech-Driven Compliance: The most exciting! Expect a boom in AI and blockchain solutions for supply chain management and customs compliance. What's Next? While these changes aren't immediate, they could be implemented in as little as 60 to 120 days and come as soon as Q4 this year. HERE’S the #kicker! Is the U.S. Customs and Border Protection, already stretched thin to handle the increased volume of formal and informal entries. While enforcement will be challenging, these reforms could significantly reduce the number of de minimis packages, especially those from China. Plus, big players like Shein have the leverage to push #manufacturing prices down, giving them a significant advantage in adapting to these changes. It's the smaller brands that will face the brunt of these reforms and may struggle to compete with rising costs. How are you preparing for these changes? What opportunities do you see hidden in these challenges?
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Full credit to Miles Vartan for this excellent piece on the likely reduction to the LV De Minimis Exemption for shipments entering the USA. Shippers will need to consider this, especially in the eCommerce landscape. If you're shipping to the US and need guidance on making this work for your company, please do get in touch. ================ ?? U.S. Tightens Regulations on Low-Value DTC Shipments Under $800 De Minimis Exemption ?? Major changes are coming for all e-commerce businesses shipping direct to U.S. consumers under the $800 de minimis threshold. For years, this exemption has allowed duty-free imports for small packages, but recent steps by the Biden administration signal a significant shift. ?? Key Updates: - The U.S. is denying duty-free exemptions for goods subject to tariffs (Section 301, 232, 201), impacting items like textiles, steel, and solar panels. - Enhanced screening for illicit products like precursor chemicals for fentanyl. - New disclosure requirements for packages under $800, including product tariff codes, to streamline U.S. Customs and Border Protection's identification of risky imports. ?? Why Now? Since 2015, when Congress raised the de minimis exemption to $800, low-cost imports—especially from platforms like Shein and Temu—have surged. In 2023 alone, over 1 billion packages entered the U.S. under this exemption. The reform is driven by fairer competition concerns, as U.S. manufacturers, especially in textiles, claim the system unfairly favours untaxed imports. ?? Impact on Businesses: - Tariff enforcement will now affect previously exempt goods like clothing, steel, and more, leading to significant pricing changes for sellers. - Increased compliance costs for overseas platforms, potentially disrupting their low-cost, fast-shipping business models. - Better regulation of goods aims to target unsafe imports and level the playing field for U.S. manufacturers. ?? What’s Next? These new rules are still open for public comment, but businesses need to prepare now. Importers may face delays, pricing adjustments, and greater scrutiny on shipments. Is your e-commerce business ready to navigate this new regulatory landscape? Now is the time to adapt your strategy, explore new logistics options, and ensure compliance. #ecommerce #exporters #importers
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After reading the details of the CARM discussion, which is anticipated to take into force on October 21st, there are still a lot of issues that need to be resolved. Please refer to the Alan Dewar quote below for more details. Will it be implemented successfully? ?? What are your thoughts? #CBSA #CARM
CARM - Canadian Apparel Federation - Incredible Webinar! Bob Kirke assembled a diverse knowledgeable panel with ‘hands-on experience’ consisting of George Reid, Sarah Marcotte, CCS, CTCS , Dave Pentland, Amy Rose & Candace Sider Insights that you can only get by collaborating with hands-on industry experts!! For those of you who missed it.....here is summary... The webinar focused on the Canadian Border Services Agency (CBSA)'s new revenue model known as CARM (CBSA Assessment and Revenue Management), with particular relevance to the apparel industry. Key points discussed: CARM Overview and Implementation: CARM aims to modernize the customs duty and tax payment system by replacing the outdated paper-based process with a digital platform, the CARM Client Portal (CCP). The system will simplify managing and paying duties but requires importers to register and comply with new procedures. A major shift will be the mandatory direct security requirement for importers, who can no longer use their broker’s bond for import duties. Cutover and Transition Period: A critical transition begins on October 4, 2024, when the current system will go dark, followed by the full CARM rollout on October 21. There’s concern that importers are not fully ready for this change. Many small importers rely heavily on brokers and may be unprepared for this new responsibility. Challenges with Registration and Business Numbers: Obtaining business numbers has become slower, with non-resident importers facing additional hurdles. Brokers are limited in their ability to assist beyond a certain point. Security and Bonds: Importers will need their own security bond for "Release Prior to Payment" privileges. The bond system is still largely manual, which can delay the process by months. Adjustments and Blanket B2s: A significant challenge is the lack of streamlined mass adjustments for post-CARM transactions. Importers who rely on blanket adjustments may face a cumbersome manual process. Duty Relief and Drawbacks: The system for handling duty drawbacks and diversions (important for high-duty industries like apparel) is underdeveloped, raising compliance concerns. Integration with U.S. Customs: Unlike the gradual rollout of the U.S. ACE system, Canada’s CARM implementation is viewed as abrupt, with uncertain compatibility with U.S. systems. Importers’ Readiness: While the system is designed to facilitate a direct relationship between CBSA and importers, many, especially smaller players, are unprepared. There’s a risk of disruption, but the panel remains hopeful that trade won’t come to a complete halt post-October 4. In conclusion, while CARM presents modernization, it brings new challenges, particularly for small businesses and non-resident importers. Registering on the CARM portal and preparing for security bond requirements are critical next steps for importers.
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CARM - Canadian Apparel Federation - Incredible Webinar! Bob Kirke assembled a diverse knowledgeable panel with ‘hands-on experience’ consisting of George Reid, Sarah Marcotte, CCS, CTCS , Dave Pentland, Amy Rose & Candace Sider Insights that you can only get by collaborating with hands-on industry experts!! For those of you who missed it.....here is summary... The webinar focused on the Canadian Border Services Agency (CBSA)'s new revenue model known as CARM (CBSA Assessment and Revenue Management), with particular relevance to the apparel industry. Key points discussed: CARM Overview and Implementation: CARM aims to modernize the customs duty and tax payment system by replacing the outdated paper-based process with a digital platform, the CARM Client Portal (CCP). The system will simplify managing and paying duties but requires importers to register and comply with new procedures. A major shift will be the mandatory direct security requirement for importers, who can no longer use their broker’s bond for import duties. Cutover and Transition Period: A critical transition begins on October 4, 2024, when the current system will go dark, followed by the full CARM rollout on October 21. There’s concern that importers are not fully ready for this change. Many small importers rely heavily on brokers and may be unprepared for this new responsibility. Challenges with Registration and Business Numbers: Obtaining business numbers has become slower, with non-resident importers facing additional hurdles. Brokers are limited in their ability to assist beyond a certain point. Security and Bonds: Importers will need their own security bond for "Release Prior to Payment" privileges. The bond system is still largely manual, which can delay the process by months. Adjustments and Blanket B2s: A significant challenge is the lack of streamlined mass adjustments for post-CARM transactions. Importers who rely on blanket adjustments may face a cumbersome manual process. Duty Relief and Drawbacks: The system for handling duty drawbacks and diversions (important for high-duty industries like apparel) is underdeveloped, raising compliance concerns. Integration with U.S. Customs: Unlike the gradual rollout of the U.S. ACE system, Canada’s CARM implementation is viewed as abrupt, with uncertain compatibility with U.S. systems. Importers’ Readiness: While the system is designed to facilitate a direct relationship between CBSA and importers, many, especially smaller players, are unprepared. There’s a risk of disruption, but the panel remains hopeful that trade won’t come to a complete halt post-October 4. In conclusion, while CARM presents modernization, it brings new challenges, particularly for small businesses and non-resident importers. Registering on the CARM portal and preparing for security bond requirements are critical next steps for importers.
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