Since the inception of the online landscape, the number of e-commerce businesses across the country has increased exponentially.
Many of these have filled a need in the market by finding overseas goods that are of interest to American consumers, importing them, and selling them on for a profit.
And let’s face it — it is an incredibly effective business model.
By pursuing overseas goods, you can find products that are yet to hit the American markets. This alone creates a point of difference between you and any other businesses in the area.
Moreover, these same products are often of a high quality, and can be obtained at an extremely low price point.
As such, this method of business has become one of the most effective ways for US citizens to create a viable income using nothing more than a laptop, an internet connection, and some ingenuity.
However, things have recently started to change.
Trump’s Import Tariffs
Since taking office, President Trump has placed a number of individual tariffs on products imported from China.
This has increased running costs for businesses across the nation. It has also caused a substantial increase in the price of a variety of goods across the United States, which has led to reduced spending nationwide.
In fact, it is estimated that the imposed tariffs have impacted upon approximately 460 billion dollars-worth of imports and exports since their inception. They are also believed to have increased consumer costs by around 57 billion dollars per year.
As I am sure you can imagine, these import duties are having a significant impact on trade by decreasing imports and exports, while also negatively affecting consumer trust in the market.
Oh, and in case it was not obvious, they are literally destroying small business.
However, if you own a small business, we have found a solution.
Section 321
There is a little-known shipping clause that helps you eliminate tariffs, known as Section 321.
In essence, Section 321 is a category of goods that passes through American Customs and Border Protection every day.
The kicker?
Any goods entering the country classified as a Section 321 pass through completely tax and duty free. This means that if you can categorize your imports as a Section 321, you can completely eliminate duties.
Did someone say winning?
Now, before you get too excited, it is important to note that not all goods can be imported under the Section 321 classification.
In fact, for your shipment of goods to qualify as a Section 321, it must not exceed 800 USD in total value. And before you ask — no — you cannot simply break your goods up into multiple shipments.
Any shipment that is covered by a single order or contract will not be categorized as a Section 321 if the total value of that shipment exceeds 800 USD.
But there is a solution.
Over the last two years we have seen the creation of a number of Canadian fulfillment companies that help you avoid import tariffs by applying Section 321 in a way that small businesses simply can’t.
Canadian Fulfillment
Canadian fulfillment companies provide a service designed to completely eliminate import duties and tariffs for American business.
This service to American businesses allows them to redirect shipments of Chinese goods through Canada. A Canadian fulfillment company like Stalco then fulfills these orders, sending them off to individual consumers in the USA, often on the same day.
As a result, your customers get their products in a timely manner, and with the same shipping costs and methods one would expect from any other US based company.
In fact, they actually get them cheaper, because you are not paying any tariffs for your products.
Talk about a win-win.
Main Takeaway
The import tariffs placed on Chinese goods are destroying small businesses across America — but there is a solution.
By using Section 321, you can avoid import duties and save yourself a whole lot of money in the process. This means lower costs for your customers, more business, and better longevity in the online business game.
