Section 321 Fulfillment
Eliminate US Import Duty + Tariff Fees
Although it may sound impossible, you can avoid paying U.S. import duties + tariffs on shipments if the order value is under $800 USD. Even products from China can enter the U.S. duty free from Canada.
Section 321 is a US Customs low value customs clearance program that provides an excellent opportunity for US-based companies to fulfill their E-Commerce orders from a Canadian warehouse, so no US import duty or tariffs are paid. The Section 321 US Customs Clearance regulation exempts goods worth $800 USD or less from US import duties and tariffs, making it easier and more affordable for businesses to ship small packages to their US customers from a Canadian warehouse. Without the right partner, shipping US orders directly from Canada can be difficult, expensive, increase shipment transit times, and unnecessarily complicate your supply chain. Strader Ferris can help you navigate Canadian fulfillment of US ecommerce orders to help eliminate potentially millions of dollars per year of costly US import duties and tariffs.
Benefits of Section 321 for US Companies
Strader Ferris can fulfill hundreds of individual orders per day from Canada and ship them over to our US warehouse where we hand the shipments over to FedEx, UPS, and USPS. Your customers won’t even know the shipments originated in Canada.
Plus, through a special Canadian government program called duty drawback, you won’t pay any Canadian duty on products that imports in from overseas. In the end, you won’t pay any US or Canadian import duty or tariffs on orders with a value under $800 USD.
How Section 321 Works
1 -
Ship your ocean or air freight inventory from overseas to Canada instead of shipping it to the U.S. to avoid paying U.S. import duty.
2 -
Your customers in the U.S. place an order and SFI fulfills it from our Canadian warehouse and ship it over to our U.S. warehouse right across the border.
3 -
Shipments are transferred on SFI trucks with the customs clearance managed by SFI.
4 -
Any Canadian import duty is refunded to you when your orders ship to the U.S. In the end your product becomes totally void of any Canadian or US import duty.
Benefits of Using SFI for Section 321
Importing to Canada from Overseas: SFI will help you arrange ocean or air shipments from overseas to our Canadian warehouse locations.
Cost Savings: By taking advantage of the Section 321 exemption, US companies can save money on import duties and tariffs, which can add up to millions of dollars over time.
Compliance Simplification: Strader Ferris will manage all Canadian and US customs clearance and regulations to make sure your supply chain is safe and secure.
Reduced Fulfillment Costs: The US dollar is valued at $1.00 USD = $1.35 CAD, so that means you get a great discount on your Canadian 3PL costs.
Integration: SFI will manage integration between our warehouse management systems and your online platforms (Shopify, Sage, Magento, SAP. Etc.)
Your Very Own Ecommerce Fulfillment & Section 321 Experts
We are one of the few companies in Canada that owns and operates all aspects of the Canadian and U.S. operations necessary to make shipping section 321 shipments a success.
- Canadian & U.S. customs brokers
- Canadian & U.S. warehouses
- Cross Border trucking fleet connecting our U.S. & Canadian warehouses
Having all these assets in place makes us dependable and accountable, as we are not replying on 3rd party companies who might drop the ball.
SFI Section 321 Program
1
Import your goods to Canada with SFI
- Our convenient warehouse locations make it easy to import from overseas to Canada.
- We can help you with the ocean or air freight imports.
2
Goods are received and stored at SFI warehouse
- Your goods are received at SFI’s Canadian warehouses, inventory is controlled, tracked, and stored in our state-of-the-art warehouse management systems.
3
Send us your orders
- Your customer in the US places an order with you ( under $800 USD ) and SFI receives it from you via integration of your choice (EDI, Shopify integration, etc.), manually or via CSV batch uploads.
- SFI picks and packs the orders within 24 hours.
4
Order is sent across the border
- The order is sent across the border from our Canadian warehouse to our U.S. warehouse.
- Your customers will be unaware the shipment even came from Canada.
5
Order is delivered by US domestic carriers
- Once received at SFI’s U.S. warehouse the orders are given to USPS, UPS, FedEx, for final delivery to your customers.
Section 321 Duty Savings Example
The below example is based on a handbag shipping from China to SFI’s Canadian warehouse where it will be shipped to SFI’s U.S. warehouse as a section 321 shipment.
Import from China to Canada
- Value for Duty: $100.00
- Duty Rate 18%: $18.00
- Through Duty Drawback or Duty Deferral = $0.00 duty paid in Canada
Import from Canada to U.S.
- Value for Duty: $300.00
- Duty Rate 18%: $54.00
- Through Section 321 = $0.00 duty paid in USD because the shipment is under $800 USD
Imagine saving all that money on every handbag you sell online.
Ship with Confidence
No Loss In Transit Time
You won’t have to worry about losses in transit time because orders are received, processed, and delivered to our U.S. warehouse from our Canadian warehouses within 24 hours. Shipments are transferred on SFI trucks with the customs clearance managed by SFI.
Legal Requirements & Compliance
Our experienced team of professionals will handle all the paperwork, from filing import documents to setting up duty deferral or drawback programs, we will make sure that everything is in place so you don’t have to worry.
Contact Us Today!
SFI CANADA
850 Sophia Street Prescott, Ontario CANADA K0E 1T0
198 Pearl St E, Brockville, Ontario Canada
SFI USA
808 Commerce Park Ogdensburg, New York USA 13669