Small Businesses Should Consider Shipping Directly from Canada to Their U.S. Customers to Eliminate Duty Costs

Trucks shipping goods
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A customs clearance entry into the U.S., known as Section 321 Clearance, can specifically help small businesses that sell and ship directly to U.S. consumers eliminate their duties and allow them to avoid steep increases to their cost of goods. This in turn would force them to either work on reduced margins or raise prices.

Smart small businesses are increasingly aligning themselves with fulfillment companies outside of the U.S. that can facilitate shipping directly to consumers in the U.S. under Section 321 customs clearance.

A leading company offering such duty program is Stalco, a Canadian-based logistics and fulfillment company with 25 years of experience in assisting U.S. companies with their distribution needs. The launch of Stalco’s program comes at a perfect time for online small business sellers preparing for the upcoming holiday shopping season.

Due to its large shipping volumes and strong carrier relationships, Stalco can guarantee the lowest possible pricing on shipping rates and the fastest delivery times available. Stalco also ensures same day order processing and the same transit times from Canada to the U.S. as you would experience from a U.S facility.

The Program allows for the fulfillment of U.S. direct to consumer orders from Canada and the elimination of duty on orders that are below the U.S. Customs De Minimis ($800 USD) when Stalco ships with Section 321 Informal Entry clearance process.

Stalco will validate that the products are Section 321 Clearance eligible and administer all import and export data and submission requirements. It will then take care of all import and transportation of inventory to its facility, store and pick, pack and ship customer orders (Canada, U.S., international) and manage all returns.

With this program, U.S. sellers have their inventory shipped from countries, such as China, directly to Stalco’s distribution center in Canada.

The key to the success of the program is Stalco’s same-day fulfillment process and its proximity to the U.S. border (only 1.5 hours away). Stalco sends trucks to the U.S. on a daily basis and inducts packages with major carriers like USPS, DHL and UPS. This gives clients the same delivery services, costs, and transit times as a U.S. based fulfilment company.

At the following URL https://hts.usitc.gov/, one can enter the appropriate HTS or HS code to get an estimated duty rate for various products.

The important consideration is to use a reputable logistics and fulfillment company outside of the U.S.: direct to consumer retailers of products sold to U.S. consumers are in most cases able to completely eliminate U.S. duty costs. Direct to consumer retailers interested in eliminating duty costs should work with an out of country fulfillment organization with experience in this category that understands the necessity to be flexible and agile while meeting the challenges inherent in small businesses.

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Steven Page
With over 30 years of entrepreneurial experience, Steven Page, President and CEO of Stalco, has led the Canadian-based logistics and fulfillment company to become a top third-party logistics provider, according to Multichannel Merchant in 2019. Recently, Page brought the Duty Drawback program to Stalco. It is a trade incentive program that offers refunds on customs duties paid for applicable import goods. This was made possible by Section 321, a U.S. Customs Clearance, which allows U.S. companies to have their goods shipped from China to Canada and shipped to the U.S. to eliminate all duties. Under Page’s leadership, Stalco has foreign goods imported to its fulfilment center in Toronto. The team then picks and packs the applicable goods and then ships them to the United States in two to three days for the same cost as if it were shipped directly to the U.S. His team ships in excess of over 60,000 direct-to-consumer orders per week throughout North America concentrated mostly in the USA. Starting his career when he was still attending college, Page co-founded Student Supplies, a national franchise opportunity for University students, which still operates today. He has since continued his entrepreneurial efforts and is responsible for founding, operating, and growing the Canadian operations of direct selling companies as well as other Canadian marketplace brands. As the e-commerce market rapidly increases in Canada, Page goes above-and-beyond to stay at the forefront of maintaining Stalco’s position as top-third party logistics provider.