How To Save Money in eCommerce With Section 321

How E-commerce Companies Save Money with Section 321 and Free Trade Zones

If you run an online store and want to ship your products to customers in the United States, you probably know that taxes, customs fees, and shipping rules can make things harder—and more expensive. But what if there were ways to avoid those costs and make your shipping faster and easier?

There are. In fact, smart e-commerce companies are already using two powerful tools to ship to the U.S. while saving money. One is called the Section 321 Program, and the other is called a Free Trade Zone. These methods are changing how cross-border e-commerce works and helping businesses lower operational costs.

What is Section 321?

Section 321 is part of the U.S. Tariff Act. It lets low-value shipments under the de minimis threshold of $800 enter the U.S. duty-free. That means no customs duties, no import duties, and no extra paperwork. This special rule is also called the de minimis provision and is part of the informal entry process allowed by U.S. Customs and Border Protection (CBP).

To qualify, each package:

• Must be valued under $800 (fair retail value)
• Can only be one shipment per single person per day
• Must follow all customs regulations and include accurate paperwork

These are called de minimis shipments. They qualify for de minimis treatment, which means fewer taxes, faster processing, and fewer delays. The Automated Commercial Environment (ACE) and the Automated Broker Interface (ABI) help track and approve these shipments under the right CBP shipment type.

Using these platforms also allows better communication with customs brokers and freight forwarders, ensuring your goods are properly reported. This process is essential in maintaining a smooth import process that keeps your customers happy and your business growing.

Expanding Opportunities for E-commerce Retailers

The rise of ecommerce retailers has sparked innovations in shipping strategies and business models. For brands looking to enter the U.S. market, Section 321 opens a door to reaching American consumers faster, cheaper, and with fewer regulatory headaches. This includes both small businesses and larger ecommerce companies shipping thousands of packages daily.

Many firms have shifted their operations to include warehouses near U.S. borders to take advantage of Section 321. This offers a competitive edge, especially when shipping low-value goods. It also creates a more flexible structure to handle both domestic and international trade demands.

The use of Section 321 supports a wider global market for brands that don’t have the budget to pay high import fees. It also allows PL providers to offer new solutions in supply chain management, helping brands make more informed decisions about routing and fulfillment.

Technology and Data Compliance

Modern trade relies heavily on tech. Section 321 and FTZ use depend on systems like ACE and ABI to manage data and customs forms. CBP’s data pilot aims to gather more complete information on each package, including:

• A unique identifier for each shipment
• Country of shipment origin
• Details about the product and its value

These efforts help streamline the release of goods while strengthening the ability of government agencies to enforce compliance. However, they also require businesses to maintain accuracy in reporting. Failing to do so can trigger audits or penalties.

For this reason, the hiring of an attorney or seeking legal counsel can be a smart move for companies scaling up their use of 321 or FTZ strategies. Legal experts can also guide you through regulatory requirements, especially as new rules around de minimis entries are introduced.

The Role of Customs Brokers and Freight Forwarders

One of the biggest advantages in using Section 321 or FTZ is the ability to work with experienced customs brokers. These professionals understand the informal entry process, help maintain documentation standards, and can troubleshoot issues with CBP directly. They’re often paired with freight forwarders and logistics providers who handle the physical movement of goods across borders.

Working with the right broker is especially important as CBP updates the rules around de minimis value treatment. For example, many companies must now specify the entry type and confirm the country of shipment to ensure their packages meet eligibility for duty-free entry.

This close coordination is what turns strategy into execution and supports a seamless shipping process from start to finish.

Free Trade Zones and the Post-2025 Outlook

The elimination of Section 321 benefits for goods from China and Hong Kong marked a significant shift in global trade practices. Many experts saw this as a turning point in the balance between fair competition and ease of access for foreign sellers. In this new environment, Free Trade Zones (FTZs) offer a valuable fallback.

FTZs work well for larger shipments and products that are stored for longer periods before sale. Since taxes aren’t paid until goods leave the FTZ, companies have better cash flow and greater flexibility. Businesses looking to meet customs modernization act standards can find value in combining FTZ usage with modern tech systems and practices.

As more retailers adjust to the new rules, we expect FTZ usage to grow among ecommerce brands, especially those working with large fulfillment centers that need scalable solutions.

Compliance Best Practices for the Future

If your business relies on Section 321 or FTZ access, now is the time to act. You’ll need to:

• Update your systems to align with ACE and ABI
• Train your teams on proper classification and entry procedures
• Create clear SOPs for shipments near the de minimis threshold

You should also audit how your site handles personal data, including updates to your privacy policy and disclosures about the use of cookies. These may be reviewed during CBP inspections if your shipments are flagged.

Ultimately, the success of your international strategy comes down to your ability to adapt quickly to change and stay informed. Subscribe to updates from U.S. Customs, participate in data pilot programs, and engage partners who understand how to navigate modern customs regulations.

Final Thoughts

There’s never been a better time for cross-border e-commerce to thrive. By using tools like Section 321 and Free Trade Zones, you can manage low value shipments efficiently while meeting all regulatory requirements.

As rules change and executive orders shift policy, the brands that stay compliant, connected, and customer-focused will win. From shipping process setup to long-term supply chain management, your commitment to smart trade practices will build trust with U.S. customers and create significant savings.

Whether you're dealing with applicable duties, understanding the potential impact of policy shifts, or building out a new network of distribution centers, the strategy remains the same: know the rules, plan ahead, and choose your partners wisely.

Need further information or help putting this into practice? FirstMile supports businesses across the entire cross-border landscape, with solutions that meet the demands of today's global Ecommerce. Contact us to learn how to strengthen your trade strategy and serve your customers better—anywhere in the world.