Section 321 Entry Requirements For Importers and B2B Businesses

Section 321 entry requirements for importers and B2B businesses offer a cost-effective solution by avoiding duties and taxes on low-value shipments. Furthermore, they speed up the shipping process by eliminating paperwork and customs processing delays.

However, there are certain section 321 entry requirements that must be fulfilled in order for your shipments to be cleared by customs.

1. Merchandise Value

If you're importing goods into the US market space, be aware of Section 321 entry requirements. This rule permits businesses to ship merchandise valued under $800 USD without having to go through costly formal entry procedures.

Though this law provides businesses with a great opportunity, there are certain guidelines that must be abided by in order to avoid penalties and charges. These include a daily limit of one shipment per company.

Furthermore, items requiring inspection, subject to Anti-Dumping/Countervailing Duty (ADD/CVD), or regulated by government agencies like the FDA or USDA are ineligible for eligibility.

Although it's essential to be mindful of these restrictions, Section 321 can still be an economical way to import goods into the US market space. Businesses that regularly ship products will find that claiming Section 321 on shipments helps save money on import duties while shortening shipping time for their customers.

2. Merchandise Description

Merchandise refers to products that are sold or given away free, such as calendars, stationery, magnets, wall art and more. They may be given away to members of the public (retail) or other businesses (wholesale).

Section 321 currently allows goods valued at $800 USD or less to enter duty-free. This exemption offers businesses the chance to reduce costs and simplify their logistics processes.

However, this option comes with a daily restriction that only permits one shipment to be filed under this program per day. Importers who fail to properly manage their Section 321 shipments could face severe penalties and fines as a result.

CBP recently announced the launch of a test program that will enable low-valued shipments, including those regulated by Partner Government Agencies (PGAs), to enter electronically into the Automated Commercial Environment (ACE). This initiative addresses the increasing volume of Section 321 low value shipments resulting from global shift in trade to an e-commerce platform; facilitate cross-border e-commerce; and offer Section 321 de minimis entry process for the first time.

3. Shipper and Consignee Data

When shipping goods overseas, international customs fees, taxes and import duties can be a substantial part of the total cost. Utilizing efficient shipping practices helps businesses avoid these fees and boost their profit margins.

The Section 321 Data Pilot allows participants to electronically transmit certain information about Section 321 shipments before they arrive in the United States, improving CBP's capacity to identify and target high-risk shipments. This will address national security concerns while streamlining customs clearance, promoting cross-border e-commerce activity and expediting transnational trade transactions.

This pilot will be conducted with eligible participants in e-commerce, such as carriers, brokers and freight forwarders; plus online marketplaces. Further details on eligibility requirements and application process can be found in sections II.C (Eligibility Requirements) and II.D (Application Process and Acceptance).

4. Commodity Description

A commodity description is the technical description of a good or service that allows it to be identified during the import/export process. This includes details regarding its raw materials and production stage, as well as any applicable uses (e.g., food or chemicals).

The Harmonized Commodity Description and Coding System is an international product nomenclature developed by the World Customs Organization that is used by over 190 countries to determine tariff rates and compile international commercial statistics.

This system serves as the cornerstone for trade negotiations, verifying quotas and origin rules, as well as statistical research and analysis. Over 98 % of merchandise traded internationally is classified according to this system.

North Carolina has chosen to utilize the UNSPSC Commodity Codes Protocol as a replacement for the NIGP protocol in their NC eProcurement tool. This transition is accomplished automatically through an automated mapping between UNSPSC codes and NIGP descriptions within NC eProcurement.

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