As regulatory scrutiny tightens around ecommerce, forwarders are presented with a dual challenge: capitalizing on growth opportunities while navigating stringent compliance requirements.

The boom in international ecommerce, fueled by online-only platforms like Temu and Shein, underscores the potential for forwarders. In the US alone, de minimis shipments surged from 771.5 million in 2021 to 1 billion in 2023, with these platforms accounting for a significant portion of daily shipments under this provision.

However, alongside these opportunities, forwarders face intensified scrutiny from agencies like US Customs and Border Protection (CBP). Programs such as Section 321 and the ACE Entry Type 86 rule for imports are focal points, demanding precise compliance and data accuracy.

Understanding Section 321 and Entry Type 86

In an attempt to streamline border processes, Section 321 allows duty-free entry for goods valued up to USD 800 without a formal customs declaration. The voluntary Entry Type 86 procedure, introduced in 2019 to further expedite clearances, has faced challenges with recent inspections revealing illegal items and misdeclared values, prompting stricter regulations.

Effective February 2024, CBP mandates that Entry Type 86 filings now occur before cargo arrival in the US, emphasizing the need for precise, timely data – including full product descriptions and HS codes. Entries filed post-arrival are now rejected, amplifying the need for meticulous clearance management by brokers.

Driving comprehensive customs clearance and trade compliance

Navigating compliance complexities like Section 321 and Entry Type 86 demands precision. Technology can offer powerful solutions; however, it is important to consider the risks of adopting a multi-tech stack approach. It is hard to drive accuracy and enhance productivity if you are handcuffed to a complex maze of disparate, costly, or worse – unsecure – systems across your global business.

Consolidating various functionalities onto a single platform is a powerful way to streamline operations, ensure compliance, and boost overall efficiency. Enter CargoWise International Ecommerce, a single platform solution designed to enhance cross-border ecommerce fulfilment in three key ways:

1. Unified data source for compliance filings

Managing compliance filings such as Section 321 declarations, AMS filings, and other security filings across different platforms can lead to discrepancies and errors. When data moves between systems, there is an increased risk of inconsistencies that can result in compliance issues and delays.

CargoWise integrates with various platforms and consolidates data into a single source for compliance filings. This unified approach minimizes errors caused by data discrepancies and enhances compliance by using consistent, validated information for all filings.

2. Synchronized updates across filings

Using multiple systems for different compliance filings can lead to data integrity issues. Changes made in one system may not reflect accurately in others, potentially causing errors in tariffs, classifications, or other critical details required for compliance.

CargoWise synchronizes updates across all security filings and declarations. When adjustments are made to tariffs or other details within CargoWise, these changes automatically propagate across all relevant compliance filings. This synchronization ensures that filings are consistently updated with the latest information, reducing the risk of discrepancies, and helping ensure compliance with regulatory requirements.

3. Advanced validation tools for data accuracy

Brokers and forwarders face challenges in validating large volumes of data received from ecommerce platforms and other sources. Manual validation processes are time-consuming and prone to errors, especially when handling such high volumes of transactions.

CargoWise provides advanced tools to automate and streamline data validation, allowing brokers to quickly and accurately handle large volumes of data. This automation reduces manual effort and improves the accuracy of compliance filings, ensuring data is verified before submission to CBP and other regulatory bodies.

As global customs regulations evolve, managing shipment data on a unified system becomes crucial for compliance and security. CargoWise empowers forwarders to capitalize on ecommerce growth opportunities while efficiently managing operations and staying ahead of regulatory changes.

Looking for faster, safer, and more reliable cross-border ecommerce fulfilment?

CargoWise International Ecommerce can help you efficiently manage the entire international ecommerce supply chain from origin country shipper to consumer’s doorstep in the destination country.

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