Small Businesses Should Consider Shipping Directly from Canada to Their U.S. Customers to Eliminate Duty Costs

Small Businesses Should Consider Shipping Directly from Canada to Their U.S. Customers to Eliminate Duty Costs

A customs clearance entry into the U.S., known as Section 321 Clearance, can specifically help small businesses that sell and ship directly to U.S. consumers eliminate their duties and allow them to avoid steep increases to their cost of goods. This in turn would force them to either work on reduced margins or raise prices.

Smart small businesses are increasingly aligning themselves with fulfillment companies outside of the U.S. that can facilitate shipping directly to consumers in the U.S. under Section 321 customs clearance.

A leading company offering such duty program is Stalco, a Canadian-based logistics and fulfillment company with 25 years of experience in assisting U.S. companies with their distribution needs. The launch of Stalco’s program comes at a perfect time for online small business sellers preparing for the upcoming holiday shopping season.

Due to its large shipping volumes and strong carrier relationships, Stalco can guarantee the lowest possible pricing on shipping rates and the fastest delivery times available. Stalco also ensures same day order processing and the same transit times from Canada to the U.S. as you would experience from a U.S facility.

The Program allows for the fulfillment of U.S. direct to consumer orders from Canada and the elimination of duty on orders that are below the U.S. Customs De Minimis ($800 USD) when Stalco ships with Section 321 Informal Entry clearance process.

Stalco will validate that the products are Section 321 Clearance eligible and administer all import and export data and submission requirements. It will then take care of all import and transportation of inventory to its facility, store and pick, pack and ship customer orders (Canada, U.S., international) and manage all returns.

With this program, U.S. sellers have their inventory shipped from countries, such as China, directly to Stalco’s distribution center in Canada.

The key to the success of the program is Stalco’s same-day fulfillment process and its proximity to the U.S. border (only 1.5 hours away). Stalco sends trucks to the U.S. on a daily basis and inducts packages with major carriers like USPS, DHL and UPS. This gives clients the same delivery services, costs, and transit times as a U.S. based fulfilment company.

At the following URL https://hts.usitc.gov/, one can enter the appropriate HTS or HS code to get an estimated duty rate for various products.

The important consideration is to use a reputable logistics and fulfillment company outside of the U.S.: direct to consumer retailers of products sold to U.S. consumers are in most cases able to completely eliminate U.S. duty costs. Direct to consumer retailers interested in eliminating duty costs should work with an out of country fulfillment organization with experience in this category that understands the necessity to be flexible and agile while meeting the challenges inherent in small businesses.