The End of Section 321? What It Means for E-Commerce and US 3PL Fulfillment
For years, Section 321 of the U.S. Tariff Act has been a crucial tool for e-commerce brands and retailers looking to reduce duties on imports. By allowing shipments valued under $800 to enter the U.S. duty-free, businesses optimized their supply chains to take advantage of this rule, particularly by routing fulfillment through Mexico and Canada.
However, recent regulatory shifts and growing concerns over trade loopholes have cast doubt on the future of Section 321, leaving businesses to reassess their cross-border logistics strategies.
What’s Happening with Section 321?
The U.S. government has been scrutinizing Section 321 due to concerns over potential abuse, including the evasion of tariffs and the exploitation of the rule by foreign companies. Proposed changes, including suspensions or modifications, could significantly impact e-commerce brands relying on this strategy to manage costs.
As the US administration and lawmakers debate its future, businesses must prepare for potential restrictions that could require a shift in fulfillment strategies.
How This Impacts E-Commerce Businesses
For brands that have relied on Section 321 to minimize duties, a suspension or elimination of the rule could mean:
Increased Import Costs – Goods previously entering duty-free may now be subject to tariffs, reducing profit margins.
Longer Transit Times – Alternative fulfillment solutions may involve different routing and customs clearance processes.
Shifts in Inventory Planning – Businesses may need to move inventory closer to U.S. customers, potentially increasing storage costs.
Rush Order’s Solution: Mexico and U.S. Fulfillment Options
While the end of Section 321 might alter logistics strategies, fulfillment from Mexico remains a cost-effective option. Rush Order offers a 321 fulfillment solution in Mexico, leveraging the same low-cost carrier rates as our U.S. locations. This means that even if regulatory changes impact Section 321, cross-border fulfillment from Mexico can still be a viable and economical alternative.
Additionally, shifting some or all fulfillment operations to our U.S. fulfillment centers can be a smart strategy. With facilities in:
✅ San Francisco Bay Area
✅ Ohio
✅ New York
✅ (More locations coming soon!)
Rush Order provides flexible fulfillment solutions to help brands quickly adapt to regulatory changes while maintaining fast, cost-efficient shipping for U.S. customers.
What Should Businesses Do Now?
Stay Informed – Keep a close eye on regulatory updates regarding Section 321.
Evaluate Your Fulfillment Strategy – Consider whether a Mexico-based solution or a U.S. fulfillment center shift makes sense for your brand.
Partner with an Experienced 3PL – Work with a fulfillment provider like Rush Order that understands the complexities of global trade and has flexible solutions to mitigate risk.
Need Guidance? Let’s Talk.
If your brand is navigating the uncertainty surrounding Section 321, Rush Order is here to help. Contact us today to explore your fulfillment options and ensure your supply chain stays resilient, cost-effective, and scalable.
Rush Order’s services include e-commerce fulfillment, retail fulfillment, FDA registered medical device handling, kitting and value added services, returns management, end-customer service integrations (including live agents), and more!
