Are you an SME looking to increase your ecomm sales into the United States from Canada, sign up for this BC Apparel and Gear session that will address the SEC 321 of the US Customs Act that allows exporters to ship on a daily basis individual orders , duty, tax and processing free to US Customers.
Join Zoom Meeting Thursday April 8th 12 noon PST
https://us02web.zoom.us/j/84831107255?pwd=dDY2OFY3VUhKQVo3Sis5YVFTSzNWQT09
Meeting ID: 848 3110 7255
Passcode: 059226
Dave Pentland from Carson International has kindly volunteered to guide us through the below new information for the industry:
The following applies to certain goods not subject to other US Government Agencies . Please review before processing your products.
The basics are:
1. Import your goods into Canada under the Duty Relief Program(no duties paid) or claimed back 100%
And then
2. Export the goods into the United States using the new limits under the Section 321 of the US Customs Act.($800.00 USD). No US duty is paid and no entry is required by US Customs.
1. The Duties Relief Program
Importing without paying duties
The Duties Relief Program enables qualified companies to import goods without paying duties, as long as they eventually export the goods.
The Duties Relief Program can help give your business a competitive advantage by lowering your costs since you won't have to pay duties on the goods when they are imported. You are not restricted to a specific geographic site to participate in the Program. You choose the place that best suits your business needs to set up your facility. As well, with the Duties Relief Program, you do not have to post a bond to financially secure your liability.
Qualifying for duties relief
If you are the importer, exporter, processor, owner or producer of the goods, you can apply for duties relief if one of the following applies:
you are directly or indirectly involved in importing goods that are later exported in the same condition you imported them.
Applying for duties relief
To apply, complete Form K90, Duties Relief Application, and send it to your local Canada Border Services Agency (CBSA) office.
Your application will be reviewed and an officer will arrange to visit your premises. During this visit, the officer will confirm that you qualify for the Program and that you are aware of your obligations. When your application is approved, you will be issued a unique licence number identifying you as a Duties Relief Program participant. This unique licence number is then used by Carson Customs Brokers when they prepare the Canada Customs entry and the duty is not calculated on import.
Time limits
In most cases, the goods you import under the Duties Relief Program have to be exported no later than four years after you import them. This gives you time to identify your export markets.
Compliance
From time to time, the CBSA will verify whether the imported goods have been exported. The Agency will adapt procedures to your usual record-keeping system, enabling you to spend less time on paperwork and more time on business. However, it is your responsibility to properly account for all goods and immediately pay any duties owing on goods that no longer qualify for the Program or that are not exported.
2. Section 321 of the US Customs Act-background and excerpts from the Bill
A BILL was passed and became law on March 10, 2016
To amend the Tariff Act of 1930 to increase the maximum value of articles that may be imported duty-free by one person on one day.
This Act may be cited as the Low Value Shipment Regulatory Modernization Act of 2015.
Sense of Congress on de minimis informal entries
Congress makes the following findings:
(1) Modernizing international customs is critical for United States businesses of all sizes, consumers in the United States, and the economic growth of the United States.
(2) Higher thresholds for the value of articles that may be entered informally and free of duty provide significant economic benefits to businesses and consumers in the United States and the economy of the United States through costs savings and reductions in trade transaction costs.
(b)Sense of Congress
It is the sense of Congress that the United States Trade Representative should encourage other countries, through bilateral, regional, and multilateral fora, to establish commercially meaningful de minimis values for express and postal shipments that are exempt from customs duties and taxes and from certain entry documentation requirements, as appropriate.
Increase in maximum value of articles that may be imported duty-free by one person on one day
(a) In general
Section 321(a)(2)(C) of the Tariff Act of 1930 (19 U.S.C. 1321(a)(2)(C)) is amended by striking $200 and inserting $800.
· A provision that increases the amount of “de minimis value” from $200 to $800 on March 10, 2016. This is in regards to Sec 321 shipments as well as personal exemptions for US residents returning to the US.
…………..as long as your small shipments are not subject to any other Government Agencies. Goods subject to Other Government Agencies like: DEPARTMENT OF TRANSPORTATION (DOT) requires a Declaration for Importation of Motor Vehicles and Motor Vehicle Equipment Subject to Federal Motor Vehicle Safety,
U.S. FISH AND WILDLIFE SERVICE –(FWS) for fish, wildlife, or any commodity containing a fish or wildlife product.
FEDERAL COMMUNICATIONS COMMISSION (FCC) merchandise identified as containing radio frequency devices.
FOOD AND DRUG ADMINISTRATION (FDA) Almost all Food and Drug products……. To name a few
DEPARTMENT OF AGRICULTURE and Goods subject To LACEY ACT.
*One large importer that we are aware of adopted this program while under the old $200.00 limits and saved Millions of dollars in US duty in 2015.