Project Description
Entry Type 86
(T86)
Frequently Asked Questions
FAQs
Understanding the details of Entry Type 86 (T86) is crucial for businesses involved in international trade. The T86 program offers unique advantages and caters to different types of shipments. Below are some frequently asked questions by importers.
What is Entry Type 86 (T86)?
Entry Type 86 (T86) is a customs entry process for shipments valued under $800 USD per person, per day. It allows the importation of regulated goods that didn’t qualify for de minimis before, streamlining the import process for eCommerce shipments into the United States.
How does Entry Type 86 differ from Section 321?
Entry Type 86 extends the benefits of Section 321 to shipments that require Partner Government Agency (PGA) oversight, utilizing the Automated Commercial Environment (ACE) system for enhanced compliance.
Who can use Entry Type 86?
T86 can be used by e-commerce businesses, individuals, owners and purchasers of imported goods, consignees, and customs brokers. It’s especially beneficial for those shipping goods that meet the de minimis threshold ($800 USD) frequently and considered regulated by PGAs.
What are the benefits of using Entry Type 86?
Simplified Entry Process
Streamlines the entry process for low-value shipments.
Cost Savings
Exempts merchandise from harbor maintenance tax and merchandise processing fees.
Compliance and Efficiency
Ensures regulatory compliance through the ACE system.
Improved Security
Allows better security checks with comprehensive data.
Are there any exceptions to Entry Type 86?
Mail shipments and goods subject to anti-dumping, countervailing duties, or quotas are not eligible for T86 entry. Additional any items subject to IRS tax collection such as tobacco or alcohol must pay all applicable duties, fees, and taxes and therefore would not qualify for Section 321 under Entry Type 86. If duties, fees, or taxes are owed on an Entry Type 86, it will be rejected by CBP and must be refiled through the appropriate informal or formal entry process.
How do I submit an Entry Type 86?
Submit the required shipment details electronically through your customs broker. U.S. Customs and Border Protection (CBP) will review this shipment information submitted, and once approved, your goods are cleared for entry. You will receive a 7501 form documenting the import transaction details.
What is the ACE system in the context of T86?
The Automated Commercial Environment (ACE) system serves as the official record system for U.S. Customs and Border Protection (CBP). Through ACE, the trade community can electronically transmit import and export transactions. This system offers a “single window” approach, making all pertinent data accessible to various government agencies. By centralizing information, ACE streamlines the import process and improves compliance.
Can T86 reduce costs for importers?
Yes. T86 reduces costs by exempting shipments from customs duties, as well as harbor maintenance tax and merchandise processing fees, leading to direct financial savings and a more cost-effective import process.
How does T86 improve security?
By requiring comprehensive data, T86 allows U.S. Customs and Border Protection (CBP) to perform better security checks, helping to manage risks more effectively and ensures trade compliance.
What data elements are required for T86?
To file an entry under T86, the following data elements are required:
Bill of Lading or Air Waybill Number
- Consignee Name and Address
- Country of Origin
- Entry Number
- Fair Retail Value in the Country of Shipment
- Importer of Record (IOR) Number
- Planned Port of Entry
- Quantity
- Shipper Name, Address, and Country
- HTS (Harmonized Tariff Schedule) Code (10 Digits)
- Consignee Number
- Commodity Description
- Value of the Goods
- Shipment Tracking Number
- Carrier Code
- Entry Type
- Port of Entry
- Arrival Date
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