Navigating the End of Section 321: How SFI Can Support Your U.S. and Canadian Fulfillment Strategy

As the U.S. moves to eliminate de minimis (Section 321) duty exemptions on August 29, E-commerce businesses will face new customs and logistics challenges. Whether you’ve been shipping from Canada, Mexico, or overseas, now is the time to realign your fulfillment strategy. Strader Ferris International (SFI) offers a seamless cross-border solution—with warehousing on both sides of the border, reduced customs clearance costs, and the infrastructure to keep your U.S. and Canadian orders moving efficiently and compliantly.

🗓️ Before August 29: Your Section 321 Transition Checklist ▢ Review all U.S.-bound SKUs and shipping volumes ▢ Decide which products to move to U.S. warehouse stock ▢ Plan consolidated transfers from Canadian facilities to reduce costs ▢ Update customs documentation processes for the new rules ▢ Confirm timelines to prioritize orders before rules change Talk to SFI about your plan

What the End of Section 321 Means for E-commerce Brands

For years, Section 321 allowed businesses to ship goods valued under US$800 into the United States without paying duties, offering a significant cost advantage for cross-border E-commerce. Many Canadian and international brands built their U.S. shipping strategy around this exemption, keeping inventory in Canada and sending small parcels directly to American customers.

As of August 29, 2025, this pathway closes for all countries. Shipments of any value will be subject to applicable duties, and customs clearance will be required in every case. For businesses and brands that relied on Section 321, the shift will mean:

• Increased landed costs on every U.S.-bound order
• More complex customs documentation
• Longer clearance times if infrastructure isn’t adapted in advance

Learn more about SFI’s U.S. customs expertise

Challenges Canadian and Overseas Sellers Will Face

Without Section 321, many sellers will encounter:

• Eroded margins due to new duty costs on small shipments
• Administrative strain from additional paperwork requirements
• Delivery slowdowns if customs clearance isn’t streamlined

For Canadian brands, the challenge is particularly sharp. Shipments that once moved under de minimis will now require a more sophisticated approach that blends strategic warehousing with efficient customs compliance.

Explore Canadian customs solutions

SFI’s Dual-Warehouse Advantage

SFI operates strategically placed facilities in Ogdensburg, N.Y., just minutes from the Canadian border, as well as multiple facilities in Eastern Ontario. This dual-warehouse setup allows brands to:

• Maintain U.S. inventory for fast, duty-paid order fulfillment
• Keep Canadian stock close to home for domestic orders
• Move goods between warehouses using SFI’s owned trucks and customs brokerage

By shifting U.S.-bound SKUs into the Ogdensburg facility before August 29, brands can sidestep clearance delays and preserve their delivery promises.

Keeping Your U.S. Growth on Track

The end of Section 321 will bring real changes to cross-border E-commerce fulfillment. For many brands, this shift might mean higher costs and operational changes that require careful planning.

With warehouses on both sides of the border, an owned trucking fleet, and in-house brokerage, SFI is positioned to help businesses adjust their fulfillment strategies and maintain reliable service for their customers. By managing the logistics and compliance requirements, we can reduce the strain on your operations during this transition.

Contact SFI to prepare your fulfillment strategy before the new rules take effect.