Ecommerce entrepreneurs always have growth in mind; it drives their choices, visions, and budgets in all aspects of business. As success comes, a big part of ecommerce brand growth comes down to handling international issues related to expansion, manufacturers, and imports. Sadly, those three ecommerce buzzwords may also trigger the negative connotations of customs, duties, and tariffs, which can suck the wind out of your scaling plans. But not when you utilize ShipMonk’s 3PL services!
We’ve structured our industry-leading enterprise to give your ecommerce brand its best chance at global success, and a new component of that is Section 321. This gem of a fulfillment solution has a lot of layers to explore, so we’ve put together this FAQ to help smoothly and concisely guide you through the ins and outs of this international import service that ShipMonk offers to its ecommerce clients.
Section 321 Basics
If you haven’t heard of Section 321 fulfillment, don’t worry! This is actually a pretty well-kept secret in the ecommerce industry that only the most innovative ecommerce insiders are taking advantage of. Let’s talk a bit about the basics of this international order fulfillment solution.
Q: What is Section 321?
A: Section 321 is a US shipment type that allows ecommerce brands to bypass the duties and tariffs that are typically associated with shipping internationally. This ecommerce order fulfillment solution will let shipments quickly clear customs and save your company exponentially on import fees by going through ShipMonk’s Mexico fulfillment center.
Q: Is Section 321 fulfillment legal and compliant?
A: Yes! Our Section 321 fulfillment services are 100% compliant with the United States Border and Customs Patrol (CBP).
Q: Where does Section 321 fulfillment take place?
A: Section 321 is operated out of ShipMonk’s state-of-the-art Mexico location—a secure Tecate facility just miles from the US border.
Q: Does Section 321 eliminate duties and tariffs?
A: With Section 321 services, ShipMonk almost entirely eliminates import duties and tariff fees for ecommerce brands.
Benefits of Section 321 Fulfillment
You’re surely starting to realize that Section 321 fulfillment is an ecommerce fulfillment solution that comes with a lot of benefits. Now let’s address those directly.
Q: What are the benefits of Section 321 fulfillment?
A: Importing inventory can be a bad combination of expensive and stressful, but with ShipMonk’s Section 321 services, ecommerce brand owners can maximize their savings while minimizing stress levels. By using Section 321 services your brand can:
Drastically reduce or even eliminate inventory import fees for products that are a part of Section 321 CBP-compliant shipments.
Benefit from ShipMonk’s Section 321 experts filing the right documents and navigating government regulations so you don’t have to.
Take advantage of optimized freight shipping via ShipMonk’s Mexico fulfillment center, which is strategically located near key transport hubs and the border.
Harness ShipMonk’s advanced 3PL software to quickly and accurately fulfill orders, manage inventory and warehouse operations in a one-stop-shop platform, and utilize integrations and automations for max efficiency.
Q: What types of businesses can use and benefit from Section 321?
A: Every kind of ecommerce brand that imports from overseas manufacturers and does business in the US can benefit from Section 321 because of the massive reduction on import duties and tariff fees. At a glance, here are just some additional saving averages broken down by a few key classes of goods:
+25% savings on apparel
+20% savings on home goods
+20% savings on electronics
+20% savings on luggage
Section 321 How-to’s
Now that you’ve learned the amazing benefits of Section 321 fulfillment, you’re naturally curious about the ins and outs of how it works. It’s actually not that complicated and we want to prove that by teaching you just how easy taking advantage of this service through our 3PL can be, and how the different aspects of Section 321 can fit with your ecommerce brand.
Q: How does Section 321 work?
A: After manufacturing, ecommerce brands simply import their overseas inventory to ShipMonk Mexico. The inventory syncs with ShipMonk’s 3PL platform so stock levels are always visible and updated. When an order for your brand comes in that can best be filled by the Mexico facility, our trained team picks, packs, and ships it to the US. From there, your customers receive their orders without any import taxes or fees, just like a regular domestic shipment.
Q: How do I declare Section 321 on my goods/claim Section 321?
A: Naturally, this process is easier when you partner with a 3PL like ShipMonk. However, whether you are attempting Section 321 on your own or are enlisting the aid of our specialized Mexico fulfillment center, claiming Section 321 requires that the party involved submit an eManifest specifying that a US shipment is on its way. This eManifest must include:
Type of good(s) in the shipment
Quantity of products being shipped
Origin of shipment
Total value of shipment
Shipping consignee (who is financially responsible for receiving the shipment)
Q: How do I integrate my store for this fulfillment opportunity?
A: Simply sync your ecommerce store with ShipMonk’s 3PL platform to ensure all your inventory is up to date; that way orders completed out of our Mexico fulfillment center are accounted for. This advanced tool with 75+ integration options will allow you to easily manage orders and inventory in Mexico AND all other ShipMonk fulfillment centers.
Q: How safe is Section 321 fulfillment?
A: The ShipMonk Mexico facility that handles Section 321 fulfillment is massive, clean, and secure. It’s just like all of ShipMonk’s US fulfillment centers, totally operated by us, and exclusively for our clients. With security guards, perimeter checkpoints, alarm systems, and high employee standards, business owners can rest easy knowing their goods are secure.
Q: How does Section 321 affect imports from China?
A: Goods imported from China fall within Section 321. While trade with China is often in flux in terms of specifics, at present, Section 321 overrides Section 301, which is a regulation that typically sets tariffs on shipments coming from China.
Q: How often can my ecommerce brand use Section 321?
A: If you qualify for Section 321 fulfillment, your business can continually use the service as long as each shipment is valued at less than or equal to $800. The one stipulation is that brands can only send one shipment to one address per day. Multiple shipments per day may be subject to a fine.
ShipMonk’s Mexico Fulfillment Center
ShipMonk operates out of 12 strategic locations around the world, but our Mexico fulfillment is the key to our 3PL being able to offer these fantastic Section 321 fulfillment services. Get to know more about our Mexico fulfillment center and its role in Section 321 now.
Q: Where is the Mexico facility?
A: ShipMonk Mexico is located at:
El Bajio Industrial Park, Carretera,
Tijuana – Tecate Km140, Parque Industrial El Bajio,
21503 Tecate, B.C., Mexico
Q: What does the Mexico fulfillment center look like?
A: All ShipMonk facilities are huge, secure, organized spaces where your goods are optimally slotted for efficient order fulfillment. These spaces combine the best ecommerce order fulfillment technology and automation with the care of our experienced 3PL team members to pick, pack, and ship goods 4X faster than the industry average with 99.9% accuracy.
Q: Is Mexico the only place I can use Section 321?
A: Currently ShipMonk’s Mexico facility is the main hub for Section 321 services. However, ShipMonk is always expanding services to better meet client needs, so keep an eye out for more international developments in the future.
Q: How hard is it to get my goods to ShipMonk Mexico?
A: It’s not hard at all! Just coordinate with your manufacturer to have your selected number of SKUs sent to our Mexico fulfillment center the same way you would have them sent to any of our other fulfillment centers, which are all privately operated by ShipMonk specifically for our direct clientele, unlike a 4PL setup.
Other Important Enquiries
The best ecommerce brand owners need to do due diligence on all areas that affect their business. We get it! So we’ve anticipated additional questions and some concerns you may have with the below portion of our Q&A.
Q: Are there any restrictions when using Section 321 fulfillment?
A: There are a few restrictions when utilizing this fulfillment solution. Shipments must be valued at less than or equal to $800. Companies can only send one shipment to one address per day. Multiple shipments per day are not allowed and may be subject to a fine. Additionally, Section 321 does not apply to goods that are:
Subject to Anti-Dumping Duty (ADD)
Subject to Countervailing Duty (CVD)
In need of special **required** inspection
Regulated by Participating Government Agencies (PGAs), like the Food and Drug Administration (FDA) and the U.S. Department of Agriculture (USDA)
Q: Will Section 321 shipments have slower transit times?
A: Quite the contrary, when you manufacture overseas, using Section 321 services will allow your goods to reach US customers much faster! Once goods are shipped out of our Mexico facility we’ll use ShipMonk’s extensive network of shipping carriers and services to optimize your delivery times. Total, from when a package leaves the Mexico facility to when it reaches an end customer, the average delivery time is 3 – 6 days.
Q: Does Section 321 fulfillment increase my shipping costs?
A: The exact opposite. Your ecommerce brand can drastically reduce or even eliminate inventory import fees for shipped products that are a part of Section 321 CBP-compliant shipments. Our ecommerce clients who manufacture internationally see an average tax savings of 25% when shipping goods to the US through Section 321.
Q: If using Section 321, what port do I import my goods to?
A: Like our other 11 state-of-the-art fulfillment centers, ShipMonk’s Tecate, Mexico fulfillment center is strategically located near key transport hubs. When using our Section 321 services you would send your goods to the Ensenada port in Mexico just a few miles from our facility and the US/Mexico border. This allows your goods to reach customers quickly, thus increasing satisfaction and decreasing shipping times.
The Most Important Question of All!
Q: How can ShipMonk help my business get started with Section 321 fulfillment?
A: If your ecommerce brand has everything it needs to be a thriving global business but is being held up by costs and complications caused by manufacturing overseas, ShipMonk can help you “stress less and grow more,” as our company mantra dictates. We can set you up with this easy and affordable way to tackle international imports. Section 321 is a reliable and legal way to manage international importing costs that has made a huge difference in the bottom line of the brands we’ve helped harness it.
Contact ShipMonk’s ecommerce experts today to begin eliminating import fees, taxes, duties, and customs complications with Section 321, or to utilize any of our other premier order fulfillment services. You can also learn more about Section 321 fulfillment services through our short informational video and other articles; just click below.
