ShipBob has announced its expansion into fulfilling de minimis-eligible orders into the U.S. from three facilities near Toronto and one in Tijuana, Mexico. This move leverages Section 321 of the Tariff Act of 1930, known as the de minimis exemption, which allows companies to bypass U.S. import duties and taxes for shipments with a retail value up to $800. This strategic move is expected to reduce costs and accelerate delivery times for merchants.
Streamlining Customs Clearance and Delivery Process
The supply chain and fulfillment platform will allocate de minimis orders to its Toronto-area and Tijuana facilities, generating an “eManifest” to expedite the customs clearance process. Following this, products are transported to the nearest U.S. hub before being integrated into ShipBob’s carrier network for delivery. The Toronto fulfillment centers can ship to the U.S. East Coast with an average transit time of two to three days, while the Tijuana warehouse can cost-effectively import products into any Southern California port.
Navigating the Challenges of De Minimis Shipping
The expansion of ShipBob’s fulfillment capabilities comes as supply chains increasingly turn to de minimis shipping to meet e-commerce demand and circumvent the costs and complexities associated with the standard U.S. customs process. However, the de minimis exemption has come under increased scrutiny as Customs and Border Protection officials grapple with the challenge of narcotics, controlled substances, and other contraband entering the U.S. via de minimis packages.
ShipBob’s move to expand its de minimis fulfillment capabilities marks a strategic step towards boosting e-commerce efficiency. By leveraging the de minimis exemption and streamlining customs clearance processes, the company aims to lower costs and expedite delivery times for merchants. This expansion comes at a time when de minimis shipping is gaining popularity in the e-commerce sector, despite facing challenges from border control authorities.
