Understanding the meaning of De Minimis and how it impacts your Cross Border e-commerce parcels
The "de minimis value" - also referred to as the "low value threshold" - is the value under which qualifying goods can be more simply entered for customs clearance. Qualifying shipments under the "de minimis value" also often qualify for lower duty and tax rates - and often are duty free.
New parcel logistics processes enable you to ship your on-line orders direct to the USA via IBC's parcel import solutions. Individual clearance of low value parcels can be done via Express Consignment Clearance Faciliites (ECCF's) and some Container Freight Stations (CFS).
Businesses and retailers are now looking to send orders direct from their suppliers to their American customer to complement their traditional logistics processes. Understanding de minimis values is a key concept in direct order parcel logistics.
IBC helps e-commerce enable retailer and business send their online order direct to the USA by utilizing the $800 de minimis value (Section 321).
Beyond retail: Cross boarder and business to business shipments
Although global e-commerce for retailers is expected to exceed 1 trillion dollars in 2017, businesses to business direct order online commerce is expected to exceed the business to consumer (B2C) in the next couple years.
Shipping to the USA and taking advantage of the increased de minimis:
The United States increased the de minimis value to $800 per shipment imported by one person on one day. This is a game changer for cross border e-commerce parcel clearance to the USA. To the USA, de minimis shipments are often referred to as CBP Section 321 informal entries.
Easier "de minimis clearance to the USA but withe special requirements
While the $800 low value threshold to the USA reduces the costs and processes, it requires importers who are aware of the the "section 321" processes. USA customs brokers are well versed in single entries for a large freight shipment but are not proficient in high volume clearance of low value shipments.
IBC has the necessary knowledge and expertise to help companies benefit from consolidated entries, Section 321 and access to Express Consignment Clearance Facilities.
Worldwide de minimis values around the world.
The de minimis values vary greatly around the world. Some our trending down (Australia) while others are increasing (the Philippines recently increased their de minimis to $212). Canada maintains a low de minimis value of only $20 CAD.
De Minimis Values around the world.
* Note this list is from publicly available sources and subject to change. Confirmation the latest importing information prior to sending your parcel.
Sample De Minimis values around the world:
- Canada: 20 CAD
- China: 50 RNB
- Mexico: 50 USD/
- Japan: 10,000 JPY
- Germany, France, Italy, and most EU countries: Under 22 Euros = no VAT, no Duty. Under 150 Euros: No Duty (but VAT is applied)
- Peru: 200 USD
- South Korea: 200 USD
- India: 10,000 INR
- Taiwan: 3,000 TWD
- Switzerland: 5 CHF
- Brazil: 50 USD
Strategic Impact of Parcel logistics
The increased de minimis to the USA is driving logistics strategies to reduce costs by improving efficiency and reacting faster to market demands. Failing to understand de minimis values could mean missing out on growth from global markets. Using parcel logistic processes, companies can now target new markets - or even niche markets within larger markets - without major capital investments.
Understanding de minimis value threshold to the USA is a key element to your business strategy as way to thrive in the global on-line marketplace.
Direct Per Order Parcel Logistics Flows to the USA:
- Lower duty and inventory cost
- IBC's express processes ensure faster and more reliable transit times
- Enable faster reaction to market trends and the ability to profitable serve lower volume niche areas of your business.
- Shorter production, faster inventory turns and better cash flow
Leverage De Minimis for Greatest Impact
In customs parlance, de minimis used to mean "to small to be considered" but today, the reverse is true: De minimis is too large to ignore!
IBC has decades of experience in parcel clearance to help you understand the parcel import processes to the USA. Our network of express and cargo clearance facilities support your business help you connect with the American market.