Section 321 – Why Your Next Business Partner Should Be Canadian

Section 321 – Why Your Next Business Partner Should Be Canadian

Next Business Partner Should Be Canadian

As a small business owner, I can appreciate the hesitation to take on a business partner in any capacity. I mean, how can I trust them? How can I be certain that they will be a good fit for my business?

And most importantly, how do I know that they will save me money in the long run?

Well, for the most part this depends on the type of business partner you are talking about, and the type of business you run.

If you work in an online environment and make your money by selling overseas products for a profit here in the USA, then I can assure you that taking advantage of a special type of business partner will be extremely effective.

I should note that I am not talking about a “traditional” business partner here.

Nope, I am talking about a company that specializes in Canadian Fulfillment.

Import Tariffs and Canadian Fulfillment

Early into their time in power, the Trump administration introduced a number of import tariffs that targeted overseas products. These tariffs were introduced to increase the reliance on local products by making it more expensive to ship overseas goods into the US.

The kicker?

It made it much more expensive for small businesses across the US to turn any sort of profit.

Which is why taking on a Canadian fulfillment “business partner” is such a good idea — because they can save you a heap of money when it comes to the importation of your products.

Canadian fulfillment is a service that has you ship your goods through Canada before sending them to your individual customers in the USA. This process is effective because it allows your goods to obtain what is known as “Section 321” classification.

The Power of Section 321

What is Section 321?

Well, in reality, it simply describes a classification of goods entering the US from another country.

Every item shipped into the country gains some sort of classification. This could be related to where it is coming from, the cost of the goods being shipped, the type of goods, or even who is receiving it.

Now, the reason Section 321 is of particular interest is because they actually cross the border completely tariff free. All of which means that if you get your goods classified as a Section 321, you save a heap of cash.

It is important to note that for an order to get Section 321 classification, its total value must not exceed 800 USD. Moreover, your order cannot consist of multiple shipments covered by a single contract, which means getting your shipment broken up into smaller packages is pointless.

Which is why taking on a Canadian fulfillment business partner is a great option.

Canadian fulfillment companies act like a middleman between you and your customers. They receive overseas shipments and store them on your behalf. Then they will ship them to your individual customers after you have received an order.

While this may sound like double handling, each time you sell a product it gains a unique order number, which allows it to be shipped under Section 321.

All of which ensure you save a heap of money in the long run.

What to Look for In Canadian Fulfillment Companies

The recent need for Canadian fulfillment companies has seen a number of new ones enter the market over the last couple of years.

While many are effective, you should strive to find one that ships with all the major US carriers and has their distribution centers close to the US border. This guarantees that your customers will not see any delay in delivery times.

You should also undertake a bit of your own research and find those companies that have good reviews. Obviously if other people have had a good experience, then you are more likely to do the same.

Summary

Taking on a Canadian fulfillment company to help run your business and get your goods classified as a Section 321 can completely eliminate import tariffs and have a huge impact on your ability to turn a profit.

Just make sure you do your research and pick a good one first.

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