Posted October 26, 2021
Import taxes and tariffs can have a huge impact on e-commerce companies that rely on goods made internationally.
E-commerce fulfillment startup ShipMonk aims to help small and midsized e-commerce importers save money with its international expansion and acquisition of El Mar Mexico (321 Fulfillment of Mexico).
The acquisition includes a fulfillment center located on the U.S.-Mexico border in Tecate, Mexico, and gives ShipMonk its first warehouse facility located outside of the U.S.
The facility in Mexico will enable ShipMonk’s e-commerce customers to leverage U.S. Customs and Border Protection’s Section 321 statute to bypass taxes on import shipments with products that have a value under $800.
Jan Bednar, founder and CEO of ShipMonk, said the company began exploring Section 321 and how it could benefit e-commerce clients about a year ago.
“We started digging into it to understand the market. We’ve had a few customers talk to us about it. They said, ‘Hey, this is a massive opportunity for us, we can save 20% to 30% of our cost of goods sold by utilizing Mexico, Canada and Section 321,’” Bednar told FreightWaves.