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Breaking News: U.S. Waives Taxes & Tariffs on China-Made Goods Under Section 321

Starting February 5, 2025, merchants shipping goods from Canada to the United States will benefit from a significant policy update: shipments containing items made in China will now qualify for tax and tariff-free entry under Section 321’s $800 de minimis threshold until further notice. This change presents a major cost-saving opportunity for Canadian businesses selling to U.S. customers.

What Is Section 321, and Why Does It Matter?

Section 321 of the U.S. Tariff Act allows low-value shipments (under $800 USD) to enter the country duty-free. This exemption has long been a key advantage for cross-border eCommerce, enabling businesses to provide more competitive pricing and streamline logistics.

With the recent amendment announced by the White House, shipments containing goods made in China will also be exempt from duties and tariffs under this policy. This update follows efforts to adjust trade policies while addressing supply chain concerns related to synthetic opioids. Read the full White House announcement here.

Key Benefits for Canadian Merchants

  1. Cost Savings – Eliminate taxes and tariffs on eligible U.S.-bound shipments, lowering overall expenses.
  2. Competitive Pricing – Pass savings to customers or improve margins on cross-border sales.
  3. Faster Clearance – Section 321 shipments benefit from expedited customs processing, reducing delivery times.
  4. Simplified Logistics – Avoid complicated duty calculations and compliance requirements for affected products.

What Merchants Should Do Next

  • Review Your Inventory: Ensure your products qualify under this exemption.
  • Optimize Shipping Strategies: With no tariffs on China-made goods, consider expanding your U.S. customer base.
  • Leverage netParcel’s Low-Cost Shipping: Our platform offers discounted rates on major carriers to help you maximize these benefits.

This policy shift is an important development for Canadian businesses shipping to the U.S. Through netParcel, you can take full advantage of these new cost-saving opportunities while continuing to provide seamless shipping solutions for your customers.

Stay tuned for further updates, and if you have any questions, reach out to our team at netParcel.

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