One of the most effective business models over the last decade has revolved around the importation of foreign goods to sell in the USA.
And really, it just makes sense.
If you know what you are doing, you can find high quality products doing extremely well in overseas markets that are yet to hit American shores. More importantly, you can find these products at an extremely low price point.
Which means that they can be sold for a substantial profit in the US.
However, we have recently seen a shift that is making it increasingly difficult for small businesses to turn a profit by reselling quality overseas products.
Enter Trump’s Import Tariffs
Over the last couple of years, President Trump has introduced a number of import tariffs that make it more expensive to import goods from overseas — with an emphasis on goods imported specifically from China.
And it has hit small businesses hard.
These tariffs have made it much harder for small businesses to import goods for resale. This, in turn, has also increased the cost of these goods within the united states, which has reduced spending at a population level.
With this in mind, experts have estimated that the introduction of these tariffs have affected more than 460 billion dollars of imports and exports since they were introduced.
And it has been estimated that the increased financial burden is being passed onto consumers to a value of approximately 57 billion dollars per year.
It should therefore come as no surprise that these tariffs are directly impacting upon the economy, while simultaneously decreasing consumer trust in the market — all of which is leading to the death of small businesses across the nation.
Which is why we were so happy to find an answer.
Section 321
Section 321 is a shipping clause that can be utilized to help you reduce your import tariffs in a big way.
So, what is Section 321?
To keep it as simple as possible, Section 321 describes a category of goods that pass through American Customs daily.
Oh, and they pass through completely tax and duty free.
All of which means that if you can get your imports classified as a Section 321, you can remove those import tariffs that are costing you thousands.
With this in mind, not all goods can be imported as a Section 321.
If you want to get your goods shipped over as a Section 321, the cost of the goods cannot exceed a total value of 800 US dollars. The kicker is that you cannot simply separate your goods up into smaller shipments to get the classification.
See, if your shipment exceeds 800 USD and is covered by a single order or an individual contract, there is no way that it will get a Section 321 categorization.
Well, unless you use a Canadian fulfillment company, that is.
Using Canadian Fulfillment Companies
What is a Canadian fulfillment company?
Canadian fulfillment companies are Canadian-based companies that have created a service that completely removes Trump’s duties and tariffs for small American businesses.
These companies offer a service that lets you redirect any shipments of foreign Chinese products through Canada. In short, these companies receive your orders, and then ship them to your individual consumers here in the USA.
Numerous companies that have begun offering this service. Often with distribution centers very close to the border. They also fulfill orders on the same day that they receive them, and ship their packages with all the major US carriers, (i.e. USPS, DHL and UPS).
This ensures that your customers get their orders quickly, and at a lower cost because you don’t have to pass on the tariffs to your customers.
Key Message
Over the last few years Trump’s Tariffs have cost the American economy millions of dollars — killing numerous small businesses in the process.
But fortunately, there is a solution.
Using Canadian fulfillment companies to get your goods classified as a Section 321 offers a great way to remove import tariffs imposed by the Trump administration — saving both you and your customers money in the process.
