Trade Compliance

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CBP Begins Pilot Testing ACE Reporting for Certain Low Value Shipments

Posted September 27, 2019


This weekend, U.S. Customs and Border Protection is set to launch a voluntary pilot test of changes to the Automated Commercial Environment that will enable the agency to collect critical advance data related to the processing of certain low-value shipments.

CBP says it hopes the test will provide a less-complex entry and release process for qualifying low valued shipments and expedite the clearance of compliant goods through the system. Moreover, the test will allow CBP to “determine if entry type 86 effectively addresses the threats and complexities resulting from the global shift in trade to an e-commerce platform, the vast increase in Section 321 low-valued shipments, and facilitates cross-border e-commerce.”

De Minimus, Section 321 Shipments


Under section 321 of the Tariff Act of 1930, an administrative exemption from import duty and taxes is provided for shipments of merchandise (other than bona-fide gifts and certain personal and household goods) imported by one person in a single day having an aggregate fair retail value in the country of shipment of not more than $800.

Required Data Elements


Starting September 28, participants in the test program will electronically transmit certain data elements related to Sec. 321 (entry type 86) shipments with a de minimis value of less than $800 to CBP via ACE prior to arrival in order for them to determine the feasibility of obtaining additional data needed to identify and target high-risk shipments in the e-commerce environment. The test may include Section 321 shipments that are subject to other agency requirements, according to CBP.

The data elements required for a Type 86 entry include: bill of lading or air waybill number; entry number; planned port of entry; shipper name, address and country; consignee name and address; country of origin; quantity; “fair retail value” in the country of shipment; 10-digit Harmonized Tariff Schedule number; and IOR (importer of record) number of the owner, purchaser, or broker when designated by a consignee (conditional).

The Type 86 entry data elements can be filed “at any time prior to, or upon arrival, or up to 15 days after arrival of the cargo,” CBP said in its Federal Register notice announcing the test.

Upon receipt of the data in an entry type 86 filing, CBP will determine whether the shipment is subject to data reporting or various impost requirements for other government agencies (many of which don't have de minimis exceptions) and would therefore not be eligible for this process and must instead be entered using the more complex informal entry type 11 or formal entry.

Disallowed Goods


The following are specifically excluded from the test: 

  • Any goods not exempt from the payment of any applicable duties, fees, or taxes imposed by other government agencies do not qualify as a Section 321 shipment and an entry type 86 filing determined to owe any such amounts will be rejected by CBP and must be refiled using the appropriate informal or formal entry process.
  • Goods imported by mail are excluded and may not be entered under entry type 86.

Additionally, CBP may require formal entry for any goods if it is deemed necessary for import admissibility enforcement purposes, revenue protection, or the efficient conduct of customs business.

It should also be noted that the Entry Type 86 test is separate from the agency’s Section 321 E-Commerce Data Pilot, which was launched this summer with nine eligible e-commerce carriers, customs brokers, freight forwarders and online marketplaces.

Need More Information?


Should you have any questions or concerns about Section 321 requirements or the specifics of this entry type 86 pilot test don’t hesitate to contact us – our trade experts are here to help.

 

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