Section 321 Shipments

NLS and Section 321: Optimize Your Direct-to-Consumer eCommerce Business

Section 321 is a valuable exemption in the Canada-U.S.-Mexico Agreement that allows small shipments to enter the U.S. duty-free. For direct-to-consumer (DTC) eCommerce retailers, leveraging this exemption presents an excellent opportunity to reduce your cost per unit by waiving or refunding import duties on items shipped from Canada to U.S. recipients, all while ensuring a seamless customer experience.

    How Does Section 321 Work?

    Section 321 begins when goods are shipped to one of NLS’s secure facilities in Canada.

    Our in-house duty and tariff experts handle the paperwork to ensure your merchandise is swiftly cleared through customs if necessary.

    Your goods are then added to our warehouse inventory. Then when a customer places an order, our dedicated team picks, packs, and ships the items.

    NLS prepares all necessary documents for U.S. Customs, and your items are shipped across the border and delivered using our extensive network of trusted U.S. carriers.

    Finally, any duties and tariffs paid in Canada are promptly refunded to you, further reducing your overall costs.

      US Section 321 

      NLS Experts Can Help With Section 321 

      NLS-team-photo

      If you’re familiar with the basics of Section 321 already but are uncertain about where to begin or how you can take advantage of the benefits for your Direct-to-Consumer brand.

      Our team of experts at NLS are here to help.

      We offer comprehensive knowledge on:

      • The Competitive Advantages of Using Section 321
      • The Section 321 Process Workflow
      • Getting Set Up for Section 321 Shipping
      • Important Rules and Regulations Pertaining to Section 321

      Our team of supply chain consultants works closely with your brand to understand the benefits of duty drawback and duty elimination, guiding you through the Section 321 process.

      We provide strategic planning and consultation to help your business significantly reduce or even eliminate import duty tariff costs while ensuring compliance with non-resident trade regulations.

      Key Benefits of Section 321 Shipping with NLS

      A robotic picker in an NLS warehouse ensuring order are picked and packed ontime and properly.
      • A smooth and efficient delivery experience as if it were fulfilled domestically.
      • Extensive knowledge of the U.S. and Canadian supply chain industry.
      • Established relationships with top U.S. carriers.
      • Help with developing a streamlined cross-border strategy tailored to your specific needs.
      • Save up to 20% on Duties and Tariffs.
      • Significantly reduce your shipping costs, positively impacting your bottom line.
      • Seamless Coast-to-Coast responsiveness.
      • Cater to customers from coast to coast with our multiple facilities across Canada.

      Is Section 321 Shipping Right For You?

      You need an expert eCommerce team.

      Our team supports you with strategic planning and consultation to help your brand set up US eCommerce fulfilment directly from Canada. This will enable you to leverage Section 321, which can reduce or eliminate your import duty and tariff costs.

      Your company sources finished goods outside of North America.

      With Section 321, you’ll ship products from our Canadian facilities to your consumers in the U.S., but the delivery experience will be no different than if it was fulfilled domestically.

      Your orders meet the requirements.

      In order to ship under Section 321, individual orders must be valued at less than $800 USD and weigh less than 50 lbs (22 kg).

      You want to save money and expand your network.

      With NLS’s U.S. relationships, you’ll be able to work seamlessly with carriers while to reach 80% of US consumers in under 3 days while saving up to 20% on Duties and Tariffs.

      Section 321 – Frequently Asked Questions

      Section 321 can seem complicated and hard to understand. But the entire process is actually completed in four quick and easy steps that save you money while delivering to your customers in an efficent timeframe.
        Domestic U.S. Delivery Labeling

        Orders are appropriately labelled for domestic U.S. delivery. All necessary documentation is then meticulously prepared for U.S. Customs, ensuring a hassle-free streamlined process.

        Parcel Scanning and Duty-Free Eligibility

        Next, parcels are scanned and consolidated for enhanced efficiency. From here your parcels are reviewed by customs. U.S. Customs reviews and releases all eligible parcels without any duty payable, allowing for easy clearance.

        Delivery and Customer Experience

        Your parcels will next arrive at a U.S. courier facility, ready for delivery. The delivery experience remains consistent with domestic fulfillment, ensuring customers receive their orders reliably and without delays, keeping that seamless customer experience.

        Duties Are Refunded

        With your parcels delivered, any duties paid in Canada are promptly refunded. You have now further maximized your cost savings while upholding your delivery standards.

        At NLS we specialize in true Omnichannel 3PL services

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        Retail

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        Wholesale

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        eCommerce

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        Inbound

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        Outbound

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        Reverse Logistics

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        Customer Specific Reporting

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        Robotic Fulfillment

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        Crossdock

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        Transload - Vancouver

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        Wholesale Western Canada

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        Mississauga Data Center

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        Same Day Order Shipping

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        Inventory Management

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        Value Added Services

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        Ticketing

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        Hanging
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        Repackaging

        Talk To An Expert and Get Started Today

        To explore how NLS can empower your business with the exact delivery times and costs as a fulfillment provider, while saving you up to 20% on duty and tariff costs, request a consultation with our experts today and unlock the full potential of your cross-border operations.

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        Omnichannel Logistics Solutions

        Direct to Consumer

        Our well-established retail relationships, transportation partnerships, and infrastructure provide clients with a significant advantage for reaching and serving consumers through wholesale, brick-and-mortar, and e-commerce channels.