Solutions for High Volume Parcel Imports

Table of Contents: 

• High Volume Parcel Import Solutions
• Section 321 Shipments
• Type 86
• ECCF vs. CFS Clearance for High Volume Imports
• ECCF Clearance
• CFS Clearance
• Hybrid Clearance Process
• Solutions for High Volume Parcel Imports from CrimsonLogic
• eCommerce Managed Services
• Trade Advisory
• ACI/ACE Solutions for North America

The volume of parcel imports is surging worldwide thanks to new trade deals, revised policies that open up market access to small and medium-sized businesses and new customs regulations designed to facilitate global e-commerce and ease the administrative burden on government agencies.  Companies can take advantage of opportunities while reducing costs with the help of third parties that provide solutions for high volume parcel imports.

In the United States, the Section 321 Type 86 clearance option has created numerous opportunities for traders, especially SMEs, to participate in global e-commerce. However, it can be challenging for companies to grow their bottom line as the competitive market pushes for lower costs and reliable delivery times. A reliable partner that provides technical expertise and e-commerce know-how, including assistance in clearing high volume parcel imports through customs can help.

High Volume Parcel Import Solutions

North America is one of the most open markets for e-commerce. In the U.S., all online purchases valued at $800 or less (including clothing, cosmetics and electronics) from overseas can enter the U.S. duty and tax free via a streamlined process that ensures clearance pre-arrival or within hours of arrival.

Section 321 Shipments

Section 321 is a clearance option for shipments valued at $800 or less to enter the U.S. free of tax and duty. Section 321 greatly streamlines import processing and allows high volume parcels to be cleared immediately upon arrival and proceed to the warehouse or to last-mile delivery, provided all the paperwork is in order. As an informal entry, Section 321 requires fewer data elements to be submitted to CBP and allows businesses to save time and money.

Type 86

Entry Type 86 is a new clearance process that covers Section 321 shipments. Type 86 expands the number of goods that are eligible for release under Section 321. These include goods regulated by partner government agencies (PGAs) that were previously not eligible for release under an informal entry. Type 86 is a test and remains an option since its deployment. Importers and brokers can still use the normal release on manifest process to clear Section 321 shipments.

The biggest advantage of entry type 86 is that it provides a cheap and fast alternative to ECCF/CFS clearance, as long as filers provide shipment HSTUS codes to CBP. With Type 86, importers and businesses can move high volume parcel imports while keeping costs low and greatly simplifying the clearance process.

While type 86 is a cost-effective way to clear high volume parcels, it requires extra work on the part of filers. HS code classification can be a complex process even for experienced importers. This is why the entry is ideal for companies who are knowledgeable about H.S. code classification or have established partnerships with custom brokers.

Besides the HTSUS, other required data elements for entry type 86 are:

• Bill of lading or air waybill number
• Entry number
• Port of entry
• Shipper and consignee data
• Country of origin
• Quantity
• Fair retail value
• Importer or Record (IOR) Number for PGA-regulated goods

ECCF vs. CFS Clearance for High Volume Imports

Most goods cleared under Section 321 are parcel imports destined for e-commerce buyers. Parcel shipments can be sent to North America consignees via parcel post (slow), integrator services like DHL and FedEx (expensive) or through Express Consignment Carrier Facilities or Container Freight Station (CFS) after arriving at the destination port.

ECCF Clearance

ECCFs are warehouses in key ports of entry that handle high volume parcel imports for international shippers and couriers. ECCFs generally provide faster and more reliable clearance for high volume parcels within hours upon arrival at the port of entry. The customs charge of $1.00 per shipment pays for express clearance even during weekdays, holidays and peak times like Christmas.

CFS Clearance

CFS clearance is another option for clearing high volume parcel imports. Importers don’t have to pay the $1 per shipment customs fee because it is not an express clearance process. Parcels can take 3-4 days to clear and there is no weekend processing. Delays are also expected during peak times. CFS clearance is a cheaper alternative to CFS and works best for parcels that are not time-sensitive.

Hybrid Clearance Process

Hybrid processes that combine the speed of ECCF with the low cost of CFS processing have emerged to accommodate the needs of businesses handling high volume parcel imports. For U.S. imports, one of the cheapest options is to use ECCFs combined with low cost USPS or parcel post delivery. Entry Type 86 is another example, allowing importers and shippers to reduce the costs of e-commerce clearance through simplified processing of Section 321 low-valued shipments, including those regulated by agencies like the Food and Drug Administration (FDA).

Third party providers can help your business with affordable and reliable processing of high-volume parcels. Services such as HS code classification and e-commerce trade advisory equip traders take full advantage of entry type 86 benefits.

Solutions for High Volume Parcel Imports from CrimsonLogic

CrimsonLogic offer multiple solutions for high volume parcel importers, customs brokers, shippers and other trade participants.

eCommerce Managed Services

CrimsonLogic eCommerce Managed Services lets importers clear high-volume parcel imports similar to clearance at an ECCF, but with additional airport and pricing options that would otherwise be unavailable. Because this is not an express clearance option, there is no $1 fee per HBL. Please note that clearance may take 2-5 days depending on the airport.

Benefits:

Affordable. Save money by skipping the $1 fee per shipment.

More airport options. Businesses have more airports to choose from to arrange for the efficient movement of goods. CrimsonLogic offers more port clearance than any other ECCF and access to four major airports (JFK, LAX, SFO and ATL).

Trade Advisory

CrimsonLogic Trade Advisory services is part of the CALISTA Intelligent Agent that helps businesses optimize compliance with trade regulations. The service includes HS code smart search, trade compliance information and landed cost calculator.

For importers who want to clear high-volume parcels under the type 86 entry, HS smart search is a big help. The AI-powered software recommends HS codes based on past trade declaration records and product description for accurate goods classification. It also provides the most up-to-date information on duties, taxes, customs regulations, free trade agreements and required documents.

Benefits:

Accurate goods classification. HS code smart search ensures fast and accurate classification for entry type 86 shipments. This means faster completion and approval of customs paperwork for high volume parcels.

Choose the most cost-effective routes and carriers. The cost calculator lets you identify the best and most affordable shipping routes, ports of entry and carriers for high volume parcels.

Be informed of the latest customs requirements. Customs rules are always changing. Be up to date on the latest regulatory changes and requirements with the trade compliance information feature.

ACI/ACE Solutions for North America

For trade participants in North America using the release on manifest process for parcel shipments, CrimsonLogic offers ACE (U.S.) and ACI (Canada) solutions for all modes of transport. CrimsonLogic ACE and ACI solutions automate entry, entry summary and eManifest processing to while optimizing compliance.

CrimsonLogic ACE and ACI are flexible and can be subscribed on the fly. Easily access the online application from anywhere in the world, or use the integrated service to connect with existing systems. CrimsonLogic can also file electronic trade declarations for high volume parcels on your behalf.

Learn more by visiting our page on solutions for high volume parcel imports or contact ustoday!