Section 321

eliminates

duty

FEES

Import your goods to Canada and determine the best duty deferral or duty drawback plan for your brand.

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How it works
First, you adjust your supply chain to ship your goods to Canada. This makes you eligible for Duty Deferrals or Duty Drawback programs, as well as Canada’s more generous Free Trade Agreements.

Second, your customers in the U.S. place an order (U.S. consumers are entitled to have up to $800 USD shipped to them daily and duty-free with Section 321). Once those orders are delivered to the US customer, your duty drawback is issued.

But… How?

1

Import your goods to Canada with LVK

  • LVKL has 2 warehouse locations in Canada (Vancouver and Toronto) ready to receive your orders.
  • By importing your goods to Canada you become eligible for a duty deferral or drawback programs.
2
Goods are received and putaway at LVK Warehouses
  • Goods are received by LVK.
  • Products are putaway and marked into inventory so your customers can buy them.
3

Customer places an order

  • A customer places an order (of $800 USD or less).
  • Because of Section 321, U.S. customers are entitled to have up to $800 USD in goods shipped to them per day from Canada.
  • LVK picks, packs and labels (with U.S. domestic final mile carriers) that order the same day.
4
Order is sent across the border
  • That same day, the order is sent across the border from Canada to the United States.
5

Order is delivered to the domestic carrier of choice

  • Once in the U.S., the order is delivered to USPS, UPS, FedEx or another domestic carrier for final mile delivery.
6

Order continues its journey and ends up with the customer

  • Domestic carrier is responsible for the final delivery to your customer.

How Section 321 saves brands money

We offer 3 different service levels for shipping, as well as extended pricing for US territories, Hawaii, Alaska and others.

Duty Fees Eliminated

By taking advantage of Section 321 and shipping from Canada, all duty fees are eliminated or reimbursed, directly impacting your bottom line.

No Loss in Transit Time

Because LVLK Warehouse locations in Canada are close to the border, we offer same-day fulfillment, so there’s no loss in transit time.

No Increased Shipping Costs

With LVK, shipping from Canada to the U.S. won’t increase your costs because you’ll still be using domestic shipping rates.

Meet Compliance and Legal Requirements

By working with LVK’s fulfillment experts, your organization will handle duty elimination legally and responsibly.

On-brand Packouts
Real Savings to your bottom line

Duty fees are a variable that has to be accounted for when calculating landed costs. And different countries have different duty fees based on trade agreements that can be tricky to navigate.

Here’s an example:

  • One pair of shoes imported from China to Canada
  • Value for Duty: $12.00
  • Duty Rate 18%: $2.16
  • $2.16 Savings (for just 1 pair of shoes!) through Duty Drawback or Duty Deferral

We are eCommerce fulfillment & Section 321 Experts

If you’re ready to leave the headaches of DTC fulfillment behind and are looking to reduce your shipping costs and increase your customer satisfaction, reach out to our LVK team today!

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