Reducing Costs for your E-Commerce Business: Section 321

 

Are you….

  1. Distributing products directly to consumers with e-commerce?
  2. Handling e-commerce orders that are less than $800 at retail?

  3. Shipping at least 50+ e-commerce orders per day?

  4. Paying duties on the products that you import?

 

 

Customs and Border Protections (CBP) offers a duty elimination program where imported products for direct shipment to an e-commerce consumer are exempt from all duties and fees, including China origin products. 

The only caveat is that when a client orders a product it should be less than $800.

 

                       

 

Establishing your Section 321 program in Mexico

1) The San Diego/Tijuana region is the most important e-commerce hub.

2) Warehousing and fulfillment costs are more competitive than in the US.

3) Major couriers (FedEx, UPS and DHL), maintain shipping operations in Otay Mesa for immediate next day distribution, in some cases.

 

Setting up a Section 321 program can take 60 to 120 days depending on the number of product SKUs.

 

To Succeed with a Section 321 Program You Need:

  1. A U.S. and Mexican Customs Broker

  2. A fulfillment warehouse partner in Tijuana, MX

  3. Transportation/Trucking Company

 

 

The Otay Mesa Chamber of Commerce in San Diego can provide you with a list of partners that can assist you in setting up and managing your section 321 program. 

 

LIST OF SERVICE PROVIDERS

 

Special thanks to the City of San Diego for funding this section