FAQ: Section 321, Customs Clearance for Duty-Exempt Efulfillment

Is duty-free logistics possible?

Yes.

The main pillar to achieve tax-exempt custom clearance is possible by Section 321 Type 86. With the right customs broker and strategy, you can achieve a shorter processing time, heightened security, fortify your relationship with CBP, and of course, decrease logistics costs.

What is the Section 321 exemption?

Allows low-value shipments to enter the U.S. without having to pay the typical fees, tax, and duty associated with importation.

What are the requirements for Section 321 entry?

The shipment must not exceed $800 in value and must not be one of several lots covered by a single order or contract.

What is Section 321 daily restriction?

Allows low-value shipments to enter the U.S. without having to pay the typical fees, tax, and duty associated with importation.

Who else may qualify as “the one person”?

With respect to unsold merchandise, under the new administrative ruling, the owner of the merchandise (foreign seller) may also qualify as the “person” provided the owner’s identity is presented to CBP at the time of importation.?

Will an IOR number be required for Entry Type 86?

Providing an IOR number is conditional for Entry Type 86, subject to applicable Partner Government Agency (PGA) requirements.

Is a POA (Power of Attorney) required for brokers to file Entry Type 86?

Yes, for purposes of this test customs brokers must be authorized to conduct customs business on behalf of the owner, purchaser, or consignee of eligible shipments through a valid power of attorney.

Do duites, taxes and fees, apply to Entry Type 86?

No. Shipments qualifying for Entry Type 86 are not subject to duties, taxes and fees. If the shipment requires fee collection (e.g. agricultural fees), filers must file a Type 01 Consumption or Type 11 Informal entry.

What is the difference between informal processing Section 321 and Entry Type 86?

Currently, shipments qualifying for de minimis treatment are subject to the release from manifest process, which cannot be used for PGA regulated commodities. Entry Type 86 will instead allow filing through ABI and can be used for PGA regulated commodities.

Are there goods that are not permitted to be filed under Entry Type 86?

Yes. Goods subject to Antidumping/Countervailing Duty (AD/CVD), goods subject to quota, certain tobacco and alcohol products, and goods taxed under the Internal Revenue Code, are not permitted to be filed under Entry Type 86.

May an entry filed to Section 301 duties be allowed for Entry Type 86?

Yes, barring subsequent notice to the contrary, an entry that is subject to Section 301 that meets de minimis requirements may currently be filed as an Entry Type 86.

How can I identify which merchandise can be filed with Section 321??

Now, it is important to consider that not all goods are eligible to take advantage of Section 321 filing. Therefore, it is essential to approach your trusted customs broker to define and classify which products could represent great savings with Section 321. Generalizing, eligibility will depend on merchandise subject to other regulating agencies that may need to inspect and clear your goods such as the U.S. Food and Drug Administration (FDA), Food Safety Inspection Service (FSIS), National Highway Transport and Safety Administration (NHTSA), Consumer Product Safety Commission (CPSA), or the U.S. Department of Agriculture (USDA) for example.

What are the benefits of Section 321?

Businesses can now clear large volumes of low-value parcels and save on duties. This process is less complex, although it is limited to <$800 value per shipment. To reach an up-leveled customs clearance experience, specialized software allows thousands of entries to be processed within minutes. That’s why we vouch for this perfect solution to accelerate ecommerce growth!?

Can you clear Section 321 entry in any port of the United States?

Yes, ask your trusted customs broker how they do it! At G-Global, our remote filing capacity is an advantage to your logistics for fast clearance in any port, no matter where and when!

Check out the following resource on Section 321, provided by CBP for more understanding, here!