Blog — Techdinamics

The End of Section 321: How Shippers Are Adapting with Automated Cross-Border Workflows

Written by Denise Perez | Oct 17, 2025 2:32:35 PM

The shipping world changed forever on August 29, 2025. With the permanent elimination of the de minimis exemption (aka Section 321 shipments), millions of daily packages valued under $800 that once entered the U.S. duty-free suddenly faced new tariffs, customs delays, and compliance nightmares.

For businesses that built their fulfillment strategy relying on this low-value exemption, the challenge is clear: adapt or face delays, increased costs, and operational headaches.

 

The Crisis Reshaping Cross-Border Commerce

The numbers tell the story: 88 postal operators have suspended services to the United States, and parcel traffic has dropped 81% since the de minimis elimination [1], significantly disrupting supply chains and increasing operational costs for many companies. 

Beyond the obvious tariff increases, the real killer is operational complexity. Every package entering the U.S. now requires:

  • Full customs clearance regardless of value
  • Complex documentation for previously simple shipments 
  • Manual intervention at multiple checkpoints

What used to be a fast, low-cost B2C shipment is now a slow, expensive, paperwork-heavy process.

 

The Primary Workaround: Bulk B2B Imports

The most common solution emerging is consolidating individual parcels into business-to-business (B2B) shipments. Instead of sending thousands of small packages separately, shippers are bundling them into bulk commercial shipments that qualify for streamlined customs processing.

This approach offers major advantages:

  • Lower per-unit landed costs
  • Faster and more predictable clearance
  • Fewer compliance risks when done properly

It also aligns with a larger trend: positioning inventory closer to the customer by importing in bulk and fulfilling locally.

However, there’s a catch. Shipments must genuinely qualify as B2B under customs law. Mislabeling consumer shipments as commercial can trigger fines, penalties, and further delays. That’s where automation and proper documentation become critical.

 

How techSHIP Simplifies the Process

techSHIP takes the complexity out of this process by automating the transition from bulk B2B imports to individual B2C deliveries, all without relabeling or rebooking manually.

Let’s break down how it works:

 

Automating Shipments from Overseas

Step 1: Packing Slip and Barcode Generation
Overseas shippers generate packing slips with unique barcodes to digitally track each order throughout its journey.

Step 2: Bulk B2B Clearance
Packages are consolidated and shipped as a single B2B load. This unlocks faster customs processing and helps reduce duties.

Step 3: Final Mile Automation
Once the bulk shipment clears customs and arrives at the local distribution center, the barcodes are scanned and techSHIP automatically generates individual B2C labels for final delivery.

 

Automating Shipments Within North America

techSHIP also supports automated workflows for cross-border fulfillment in North America, particularly between Canada and the U.S., which have their own customs and trade compliance regimes distinct from overseas importation.

It handles:

  • Managing induction points for shipments entering the U.S. market from Canada
  • Automation of customs labeling and clearance tailored to these internal cross-border movements
  • CUSMA (Canada-United States-Mexico Agreement) compliance, with automatic certificates of origin attached to shipments to unlock preferential tariffs and reduce duties

By bridging these two workflows, techSHIP provides a full-spectrum solution that addresses both overseas import disruptions and intra-North America supply chain complexities.

Want to explore how Techdinamics’ solutions and network of partner warehouses in the U.S. can help you navigate the new customs landscape? Contact us

 

[1] United Postal Union - “FAQ: Impact of recent US customs regulation changes on international postal services”