Relations between Chinese manufacturers and American businesses are becoming increasingly complicated. Since 2010 China has been the world leader in manufacturing, and as of 2019, they were responsible for 28.7 percent of global manufacturing.
It’s no wonder that American businesses continue to explore goods produced in China to resell. With a wide variety of low-cost products, buying from China is beneficial to their economy and that of the United States.
Unfortunately, trading with China comes at a cost.
The Effects of the Trade War
The United States and China continue to fight to be the lead world manufacturer. This ongoing struggle for the number one spot has resulted in both countries placing heavy tariffs on goods imported from either country.
These heavy fees make it expensive for American entrepreneurs to import Chinese goods to the point that it is no longer cost-effective. Thankfully, there is a solution.
Canadian Fulfillment
Canada, thus far, is on good trading terms with both the United States and China. That means that they don’t have to pay exorbitant fees for imported goods from China, and the United States can import goods from Canada without the heavy tariff.
With that in mind, a new statute was instituted in 2019 that allows US business owners to ship goods from China to Canada and then have them forwarded to addresses in the United States, thus bypassing the heavy fees.
This statute is known as Section 321 and is especially beneficial to eCommerce businesses in the United States.
How Does Section 321 Work?
Section 321 allows eCommerce businesses to import goods that originated from China from Canada as long as the merchandise is valued under $800. This US Custom and Border Protection statute exempts these goods from any customs duties or taxes.
What Is a Canadian Order Fulfillment Company?
If you own an eCommerce business, a Canadian order fulfillment company is essential in purchasing goods from China. They are third-party companies based in Canada that receive your goods from China and store them in their warehouses.
From there, they handle all the logistics, including shipping products directly to your customers in the United States.
Canadian fulfillment means that you save money on tariffs and get orders processed and shipped all in the same day as if they were already in the United States.
Can Canadian Fulfillment Help Your Business?
If you have an eCommerce business and you’re ready to take advantage of the variety of affordable goods in China, then you’ll want to make full use of Section 321. How do you take advantage of this statute and start working with Canadian fulfillment companies?
For starters, you’ll want to understand all the conditions and best practices that relate to Section 321. If not, it can make the process more tedious and even lead to shipment delays or punishments.
If you’re just starting to work with a Canadian fulfillment company, you’ll want to keep the following in mind so you can get the most out of section 321 and avoid any complications.
Be Aware of the Daily Limit
Section 321 can only be claimed by importers once a day, and the total worth of the goods must be under $800. If you have more than $800 worth of goods you want to import, you won’t be able to ship them over the US border all at once.
Thankfully, a Canadian fulfillment company can handle all the delivery operations for you, so you won’t need to worry about how much you ship and when. This helps eCommerce businesses save money on tariffs, import duties, and other fees.
Skip Unnecessary Shipping Costs
Rather than figuring out all the logistics yourself of receiving eCommerce shipments from China, then overseeing border crossing yourself and shipping items to your US warehouse, you can use a Canadian fulfillment company to simplify the process.
Partnering with a fulfillment company means your goods are shipped directly to their warehouse in Canada and then to you or your customers.
Focus on Other Important Aspects of Your Business
There are aspects of your business that thrive when you directly oversee them. And then there are things like shipping, housing, custom laws, and other logistics that are stressful and take away from other vital parts of growing your business.
Rather than try to tackle it all, partnering with a Canadian fulfillment company and leveraging Section 321 can give you back your time while still taking advantage of the booming Chinese market without paying hefty fees.