YAMATO Helps Businesses Clear Inbound Ecommerce Duty Free
02.14.2022 | Category, Blog
YAMATO wants ecommerce businesses to now know that many more items can be shipped into the US from overseas tax and duty-free! Thanks to Section 321(a)(2)(c) of the Tariff Act which was amended in 2016, there is no duty or tax on merchandise imported by one person on one day having a fair market value in the country of shipment of $800 or less. (Some exceptions exist for bona fide gifts and certain personal and household goods.)
What happened was that prior to 2016, de minimis entries into the US were tax and duty free and at that time de minimis entries were defined as those which were valued $200 or less. The 2016 amendment under the Trade Facilitation and Trade Enforcement Act (“TFTEA”) modified the definition of de minimis entries increasing the daily duty-free maximum from $200 to $800!
By increasing the duty-free maximum od de minimis entries from $200 to $800, thousands of ecommerce businesses across the US are able to reduce import costs and increase their profit margins. The end-result is that these changes to Section 321(a)(2)(c) of the Tariff Act has helped to promote ecommerce buying in, and selling to, the US, offsetting the negative effects of increased shipping costs caused by duties and taxes.
Moreover, such de minimis entries into the US are speedy as such merchandise clears customs electronically - an import shipping process where the items can clear customs quicker to be delivered to your consumer faster.
Maintain that competitive advantage and trust YAMATO to help you navigate through the de minimis entries of Section 321 of the Tariff Act to improve your ecommerce bottom line.