Section 321 Fulfillment to Bypass New Tariffs

Ecommerce fulfillment continues to evolve rapidly, and U.S. brands are increasingly turning to nearshore solutions to stay competitive. One of the most powerful customs programs enabling this shift is Section 321 — a U.S. Customs regulation that allows duty-free importation of qualifying goods. When combined with a fulfillment center in Tijuana, Mexico, this strategy can reduce landed costs, accelerate delivery, and boost profit margins — as long as the goods are not of Chinese origin, which are now excluded from this benefit.

What Is Section 321 Fulfillment?

Section 321 is a U.S. Customs and Border Protection regulation that exempts imports valued at $800 USD or less per day, per recipient from duties and taxes. This creates a huge advantage for ecommerce fulfillment operations, particularly for DTC brands shipping small, lightweight, high-volume products.

However, it’s important to note that as of recent U.S. policy updates, products manufactured in China are no longer eligible for Section 321 clearance. Ecommerce brands must now source from alternative countries or work with suppliers in Mexico or other low-tariff regions to qualify.

Key Benefits of Using Section 321 with a Fulfillment Center in Mexico

Operating through a fulfillment center in Tijuana — just minutes from the U.S. border — allows you to maximize the benefits of Section 321 without the long delays or risks associated with offshore fulfillment.

✅ Zero duties and taxes for eligible shipments

✅ Same-day fulfillment and 1–3 day delivery across the U.S.

✅ Streamlined customs clearance through IMMEX + Section 321

✅ Lower total landed costs, higher margins

✅ Improved conversion rates due to faster shipping and lower prices

Best Practices for Section 321 Fulfillment

To ensure compliance and maximize cost savings, follow these proven best practices:

1. Choose a fulfillment center in Mexico that specializes in Section 321 and cross-border operations.
2. Avoid Chinese-origin goods unless you’re using a different customs program.
3. Use automated systems to segment shipments and maintain de minimis compliance.
4. Track every shipment with audit logs and consignee verification.
5. Maintain digital documentation and a strong chain of custody.

Compliance Considerations

• Section 321 does not apply to goods of Chinese origin or restricted products (e.g., alcohol, tobacco, certain electronics).
• Businesses must track daily shipment values per consignee using EINs and digital logs.
• Regular audits and strong recordkeeping are essential to avoid penalties or disqualification.
• Stay updated on CBP regulations and ensure alignment with your 3PL partner.

Action Plan: Launch Your Section 321 Fulfillment Program

1. Audit your current customs costs and shipping times.
2. Identify eligible SKUs (excluding Chinese origin).
3. Partner with a fulfillment center in Mexico that offers Section 321 routing and in-house customs support.
4. Launch a pilot program and monitor KPIs like landed cost, delivery speed, and customer satisfaction.
5. Scale your operation while ensuring continued regulatory compliance.

Stop overpaying on tariffs.

See how much you save with Section 321