How To Avoid Import Taxes In 2021

how to avoid import taxes canada fulfillment

The number of eCommerce businesses is constantly growing. People find it very convenient to be able to order goods or services online without leaving their home. Many entrepreneurs import and sell overseas goods that are of great interest to American consumers. A large number of different products are imported from China. However, it has become too difficult for some entrepreneurs to make money just because they have to pay huge import taxes. 

When Donald Trump took office, he started placing tariffs on Chinese goods. As a result, entrepreneurs had to increase prices for some products. It led to reduced spending across the country just because most consumers became unable to pay extra money. There is no doubt that these tariffs have a detrimental effect on trade. Imports and exports decrease making it almost impossible for some businesses to survive. These are really hard times for small business owners. The good news is that there is an effective solution that can help you reduce or even avoid import taxes in 2021. Let’s find out what you should do to keep your business alive and thriving this year. 

Section 321 – Have You Ever Heard About It? 

No matter whether you are a first time importer or an experienced one, saving money is critical for your business. This is exactly the situation when Section 321 might be helpful. Section 321 allows the US individuals and companies to import goods tax and duty free if their total value does not exceed $800. That means that you can completely avoid duties in 2021 if you manage to categorize the products you are planning to import as a Section 321. Keep in mind that you can make only one shipment per day. Plus, you have no opportunity to combine multiple shipments. 

How You Can Declare Section 321 

In most cases, the goods that are worth less than $800 will be categorized as Section 321 automatically. But if your shipment requires an eManifest, there are some important steps you should follow. First and foremost, select “Section 321” in your eManifest. After that, indicate a shipment number for the goods. You will also have to mention such details as the total value of the goods, the shipment company, the country of origin, etc. Then, submit your eManifest to the US Customs and Border Protection (CBP). 

Section 321 Restrictions 

As it has been already mentioned, you cannot claim Section 321 if the total value of the goods you want to import exceeds $800. In fact, this is not the only restriction you should take into account. There are some certain types of goods that cannot be categorized as Section 321. They include goods that need inspection even if their value is under $800, such goods as crude oil, goods that are subject to Anti-Dumping or Countervailing Duty and finally goods that are regulated by some government agencies such as the US Food and Drug Administration (FDA). 

What if the total value of the goods exceeds $800, but you desperately need to avoid paying import taxes? Luckily, there is an effective solution. Today, you have an excellent opportunity to cooperate with a Canadian fulfillment company that can help you ship goods and avoid import taxes. 

Canadian Fulfillment 

Dealing with a fulfillment center in Canada is a great option for entrepreneurs to import goods without paying duties. A Canadian fulfillment company will help you save on taxes while importing goods under Section 321. If consumers order Chinese products from your online store, you can redirect shipments of those products through Canada. After that, a fulfillment center will send the orders to your consumers in the US. In most cases, it happens on the same day. 

The main goal of a reputable fulfillment company in Canada is to find an individual approach to each client. You can be sure that a team of highly experienced professionals will work hard to help you make your business successful. Your customers will get the products they need without delays. 

It goes without saying that quick delivery is a decisive factor for buyers who make purchases online. A customer wants to get the goods as quickly as possible. If you fail to deliver in time, you are likely to lose the customer. Nothing like that is going to happen if you choose to deal with a fulfillment center in Canada. 

How Canadian Fulfillment Works 

A reliable Canadian fulfillment company will do the job for you with passion and dedication. Obviously, it is extremely important for a successful online store owner to have the customer orders fulfilled accurately and delivered within a short period of time. That is why, finding a responsible and trustworthy company is critical. 

A third-party logistics provider ships your orders from its fulfillment center. In fact, each fulfillment center works differently. However, they all want to achieve the same purpose – meet your shipping demands and help your business grow. Some logistics providers have a lot of fulfillment centers operating in Canada. It allows them to work more quickly and effectively. 

Benefits of Working with a Canadian Fulfillment Company 

When you hire a fulfillment company, you not just get a warehouse to store your orders, you also get highly trained and committed people working to help your business prosper. 

Obviously, you need more staff and warehouse space when your business grows. But managing everything can be really hard due to the lack of time and experience. That is the main reason why outsourcing the work to a third-party logistics provider is a good idea. The team of experts will receive, process and ship the orders. As a result, you will have more time to focus on growing your business. But how do you know that it’s the right time for you to start cooperating with a Canadian fulfillment company. In fact, there are signs indicating that you should start thinking about outsourced fulfillment. 

If the number of orders you have to process is not stable and changes from time to time, it makes no sense for you to run a warehouse. A fulfillment company will be able to adapt to your needs and do the job successfully. 

If you are too busy or just do not have enough infrastructure to deliver the goods globally, using Canadian fulfillment would be an effective solution. It will help your business run smoothly. Plus, you will get an excellent opportunity to save money on taxes and duties when you import goods. 

Massive import duties can easily destroy a small and even mid-sized business. However, you can keep your business afloat by using Section 321 and working with a fulfillment company in Canada.

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