Have You Taken Advantage of Duty Free Ecomm?
Section 321 is the statute that describes de minimis. De minimis is the retail value below which articles can be admitted into the country free of duty and of any tax imposed on or by reason of importation. The U.S. Customs and Border Protection states that the fair retail value of articles imported by one person on one day and exempted from the payment of duty shall not exceed $800. The de minimis threshold was previously $200 but increased with the passage of the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA). What does this mean for your business? It means a savings strategy. Because inventory can enter the U.S., if the items value is under $800, you can send orders from either of our bi-costal facilities in Canada duty-free.
The icing on the cake? Canada offers a business-friendly duty drawback program, as well as a duty deferral program. So, you can ship your inventory into Canada and ship orders from one of NRI’s Canadian facilities, duty-free, and leverage either duty deferral or drawback to negate Canadian duties. By combining these ideas and utilizing NRI’s Canadian facilities, this creates a duty-free program for USA destined ecommerce shipments. It does not require an FTZ or bonded facility to operate and it provides potentially significant improvements to your margins. NRI is managing this from our facilities on both west and east coasts – Vancouver, Kamloops, Montreal, and Toronto.
Carrier programs are now providing value propositions for brands to consider a single point of Global B2C inventory.
· Cost competitive express delivery services globally
· Low-cost 2-4 day freight services with FedEx and UPS to all points in the USA
· Consolidated inventory reduces costs, provides flexibility with less risk.
For a specific freight profile to your product please contact us and we will provide a detailed proposal.