Section 321

Section 321

Why Reno, Nevada, Is the Perfect Location for Businesses Moving Warehousing from Canada or Mexico

Early in 2025, US Customs and Border Protection (CBP) proposed new rules that directly affect businesses with cross-border warehousing and 3PL services.

In short, some imports which used to be exempt to tariffs under Section 321 would now be required to pay duties.

If you are contemplating a shift in warehousing due to proposed changes to CBP and Section 321—or for any other reason—you’ll find that Reno, Nevada, is the ideal location for US-based warehousing operations. As experts in retail fulfillment services, we here at Relentless Fulfillment can’t wait to show all that our area has to offer—especially in terms of logistical advantages and direct cost-savings.

Reno’s Strategic Location

Reno’s major advantage is its proximity to major West Coast ports—particularly those in California.

California has twelve ports of varying sizes, all of which are known for handling different types of goods. The ports of Los Angeles and Long Beach are the largest ports in the United States, with roughly 79 million and 59 million total tons of cargo transported each year respectively.

Not to be overlooked is the nearby Port of Oakland, with 19 million total tons of cargo transported annually. Though the Port of Oakland may be smaller in volume, it plays an important role in the supply chain.

Key assets shipping from the Port of Oakland include:

  • Wine and spirits
  • Fruits and nuts
  • Electronics
  • Machinery
  • Furniture
  • Plastics

Reno’s direct access to these key West Cost ports is made simple via Reno’s strategic location and the seamless transportation channels connecting them.

For the Port of Oakland, it’s as simple as heading West on I-80. Depending on traffic, you’ll be there in under four hours. For the Port of Los Angeles, the I-80 and I-5 corridors will get you there in just under nine hours.

While these key transportation routes provide fast and reliable connections to the Western ports, Reno’s central position in the West also has the added advantage of efficient distribution to other major US markets.

Reno is within a one-day drive to eight of the eleven Western states:

  1. Nevada (obviously)
  2. Washington
  3. California
  4. Wyoming
  5. Arizona
  6. Oregon
  7. Idaho
  8. Utah

This key location means Reno is within a 500-mile radius of nearly 60-million people.

If that is not a strategic locational advantage, we don’t know what is.

3 Cost Advantages of Reno 3PLs

Reno-based 3PLs reduce transportation costs by minimizing shipping distances and leveraging regional hubs.

First, Reno is close to several major parcel hubs:

  • UPS
  • FedEx
  • USPS

This proximity ensures quicker transit times and cost-effective shipping for both regional and national deliveries.

Furthermore, because Reno is in Zone 3 for many major West Coast markets—as opposed to other popular warehousing locations, inducing Las Vegas, which is in Zone 4—3PLs based here enjoy not only lower shipping costs but also faster delivery times. That’s simply a win, both for you and your customers alike.

Second, as we already briefly mentioned above, Reno’s robust transportation network, including the I-80 and US-395 corridors, offers seamless connections for ground shipping.

Our proximity to rail lines also increases transportation flexibility and allows for integrated transportation methods.

Taken together, these factors lead to greatly reduced shipping costs and quicker transit times.\

Advantage 2: Customs Clearance

In moving your warehousing and 3PL fulfillment center from Canada or Mexico to Reno, Nevada, you’ll be able to bypass customs costs.

This is especially important now that regulatory compliance around tariffs have changed in 2025. Some companies that may have found their shipments exempt to tariffs may now be losing that exemption.

Though we will address this issue in more detail below, for now it’s sufficient to recognize that if you’ve been affected by these regulatory changes, moving to a US-based 3PL fulfillment center will certainly carry distinct cost advantages.

Advantage 3: Cost of Labor

Compared to other popular logistics hubs based in Las Vegas and California, Reno-based warehouses and 3PL providers like Relentless Fulfillment enjoy a more competitive cost of labor.

Combined with Reno’s lower cost of living, our ability to offer competitive wages for our warehouse and fulfillment workers means we can attract top talent and still pass labor savings along to our customers.

Working with Relentless Fulfillment will allow you to do the same!

Section 321 and Regulatory Compliance

For businesses with warehousing and 3PL centers in Mexico and Canada, the proposed changes to Section 321 will make a substantial impact:

Under current law, Section 321 exempts certain imports into the US from duties if the aggregate fair value of the imported articles does not exceed $800 per person, per day. Further, Section 321 deems the value of these shipments to be so minimal that they are not subject to the same formal customs entry procedures and extensive data provision requirements as, other, higher-value imports entering the US.

With CBS now amending Section 321 to eliminate these exemptions, however, these changes have an immediate impact on cross-border logistics for Canadian and Mexican warehouses.

Inevitably, these changes will lead to

  • Longer waits
  • Higher costs

Fortunately, Reno-based 3PLs can help businesses by providing a practical alternative to avoid cross-border delays and tariffs.

In addition, we can help you comply with new CBP regulations, including enhanced data collection and duty-free shipment requirements.

Not only can we prepare and submit import and export paperwork ensuring all documents comply with relevant regulations, but we can also help ensure compliance on your behalf.

Because we are well-versed in international trade regulations, working with us comes with greatly decreased risks of delays or fines; and our knowledge of tariffs, duties, and trade agreements helps to ensure accurate classification and valuation of your goods.

Conclusion

In short, Reno’s strategic location, cost advantages, and compliance benefits make it the perfect choice for businesses.

By partnering with Relentless Fulfillment for all your warehousing and 3PL needs, you will enjoy faster shipping times, lower costs, and comprehensive support every step of the way.

As changes to CBP and Section 321 continue to have a ripple effect through the markets, come side-step the worst of the fallout by working with us.

We look forward to getting started!

Come learn more about our Reno-based 3PL services and request a consultation.

We can’t wait to hear more about who you are, what you do, and how Relentless Fulfillment can help you do it even better.

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