Why a 3PL Might Not Be the Best Way to Ship to the US After the Latest Tariff Updates

When the US closed its de minimis loophole, the reaction from many brands was immediate: get stock into the US, partner with a 3PL, ship domestically.

On the surface, it’s an obvious fix. The de minimis exemption meant any shipment under $800 could bypass import duties; a quiet but powerful advantage for cross-border e-commerce. Now, every shipment into the US gets taxed. For brands sending high volumes of smaller parcels, the cost jump is significant.

The instinct to avoid cross-border shipments altogether is understandable. But before committing to a US-based warehouse, it’s worth looking at the bigger picture.

The 3PL Promise vs. Reality

The pitch for a 3PL sounds compelling: faster delivery times, potential shipping savings, and a “local” brand experience. But the reality is less straightforward. You still pay duties, moving your stock doesn’t make them disappear. You also lock up inventory in a single market, taking on warehouse fees before you’ve validated demand. If sales fall short, you’re left with unsold stock, markdowns, or costly returns. And forecasting risk increases; get it wrong, and you either overstock and waste, or understock and miss sales.

For brands still testing the US market, or those with unpredictable seasonal demand, the business case for a 3PL often weakens once these factors are accounted for.

“A lot of brands are realising that a 3PL can fix one pain point but create three others. The trick is to run the numbers with a cold head, not just follow the herd”

Fernando Pedraz, Reveni

For Example: A Woman’s Dress

Scenario:

• Manufacturing origin: China
• Storage location: UK warehouse
• Destination: US customer
• Product: Woman’s knitted or crocheted dress (synthetic fibers)
• Retail price to customer: $150

HTS code & base duty

• HTSUS: 6104.43.2010 - Women’s dresses, knitted or crocheted, of synthetic fibres, other, women’s.
• MFN duty: 16% ad valorem.
• Section 301 (China) additional duty: 7.5% ad valorem (applies because country of origin is China).

How duties are calculated (two common structures)

1. Direct-to-consumer (sale price is the customs value)
   If the UK company sells directly to the US consumer, the customs value is the retail price (assuming no need to adjust for assists, etc.).
   
   • Customs value: $150
   • Base duty (16%): $24.00
   • Section 301 (7.5%): $11.25
   • Total duties: $35.25

2. US entity (transfer price is the customs value)
   If you set up a US entity that purchases the goods from the UK company at a bona fide transfer price (and acts as importer of record), the customs value is that transfer price. Example:
   
   • Internal transfer price: $50
   • Base duty (16%): $8.00
   • Section 301 (7.5%): $3.75
   • Total duties: $11.75

Result: In this example, using a cost‑plus transfer price of $50 vs a $150 retail value reduces duties from $35.25 → $11.75 (saving $23.50 per unit), before MPF/HMF and any state sales tax.

Notes

• Section 301 applies by country of origin, not by where you ship from. If origin isn’t China (e.g., Vietnam), the 7.5% additional duty wouldn’t apply.
• The transfer price must meet CBP related‑party valuation tests to be accepted as transaction value.
  

Sales tax is separate from import duties and varies by state. Brands must register and file in states where they meet physical or economic thresholds - speak to one of our teams about how we can help with this.

A smarter alternative: centralised stock + US Entity

Instead of splitting inventory and committing to warehouse space, more brands are keeping stock centralised, often in the UK, and setting up a US entity. In this setup, the US entity is the importer of record even though the stock is shipped directly from the UK warehouse to the end customer in the US.

There are two main ways to structure the sales side:

• Ideal setup (recommended): Create a dedicated Shopify store for the US that’s owned by the US entity. This way, US customers buy directly from the US entity, checkout is clean, and internal accounting is simpler since sales and duties are all booked in the right place from the start.
• Alternative (more complex): Keep a single Shopify store under the UK/EU entity and have it process orders on behalf of the US entity. While this avoids an additional storefront, it makes reconciliation harder, since the local entity would technically be charging end customers and then passing sales back through to the US entity.

In both cases, duties are paid on the transfer price between the UK/EU business and the US entity, and the US entity completes the sale to the customer. This keeps your operation lean, reduces inventory risk, and protects margins.

Another benefit of setting up a US entity is eligibility for duty drawback on returned items. This means brands can reclaim duties paid on goods that customers send back, which can add up to significant savings over time. We support merchants with this process too.

Making the model work

To make this model run smoothly, you need real-time duty calculation, clear sales tax compliance across US states, and visibility on every shipment. That’s exactly what Reveni Atlas is built for, calculating duties in real time, helping you decide whether to show or include them in product pricing, managing tax registrations and filings, and keeping you and your customers informed on order progress.

Atlas lets you grow into the US market without over-investing in infrastructure too soon.

When a 3PL still makes sense

If you have high, consistent US sales volume, proven demand patterns, and local operations already in place, a domestic fulfilment setup can be the logical next step. The key is knowing when the numbers, and the market signals, justify it - and that’s exactly where Reveni Atlas comes in, helping brands analyse those signals, run the scenarios, and choose the right moment to make the move.

The takeaway

The removal of the de minimis exemption has forced brands to rethink US shipping. For many, the knee-jerk move to a 3PL might not deliver the efficiency or cost savings they expect.

By keeping stock centralised and using a US entity to manage duties and sales locally, with Reveni Atlas handling the complexity, you can reduce risk, protect margins, and stay flexible while growing in a new market.

In a post-de minimis world, speed matters. But so does control. Atlas helps you achieve both.