U.S. Tariff Update: Changes to Section 321 Exemption for Canadian Shipments
At TUTT, Canada’s Electronics Store, we are committed to keeping our customers informed about critical changes in cross-border trade that may impact shipping, pricing, and logistics.
Major Update: Section 321 Exemption Ends for Made-in-China Products
As of February 6, 2025, a new U.S. executive order has significantly altered cross-border shipping rules, particularly affecting eCommerce shipments from Canada to the U.S.
Under this order, the Section 321 de minimis exemption—which previously allowed duty-free shipments under $800 USD—has been terminated for goods with a country of origin of China, even if those goods are shipped from Canada.
We have confirmed this policy directly with U.S. Customs and Border Protection (CBP).
What This Means for TUTT and Our Customers:
If you ship products from Canada to the U.S., here’s how this change will impact your orders:
1. New Customs Clearance Requirements
• All Made-in-China products (including those from Hong Kong) now require formal entry into the U.S.
• This means additional paperwork, customs declarations, and longer processing times at the border.
2. Duties and Tariffs Now Apply
• Previously, small shipments under $800 USD could enter the U.S. duty-free under Section 321.
• Now, affected shipments will be subject to 10-30% import duties and tariffs, depending on product category.
3. Potential Shipping Delays
• Increased customs processing may lead to longer transit times for Made-in-China products.
• We recommend planning ahead for possible disruptions and extended clearance times.
What TUTT is Doing to Adapt:
At TUTT, we are actively working to minimize the impact of these changes and ensure continued smooth operations for our U.S. customers. Our key steps include:
✅ Exploring alternative product sourcing options to offer non-affected alternatives.
✅ Working with logistics partners and customs brokers to streamline the new clearance process.
✅ Updating pricing and shipping policies to reflect potential cost changes while maintaining affordability.
✅ Providing guidance on documentation requirements to help customers navigate the new import process.
Next Steps:
We understand that these changes may create challenges for cross-border eCommerce, but we are committed to keeping you informed and supported. We will continue to monitor updates and share any new developments as they arise.
If you have any questions about how this affects your orders, please reach out to our TUTT support team. Thank you for being a valued part of our community
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TUTT | Canada’s Electronics Store
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