Project Description
Master Entry Type 86 (T86): Your Guide to Importing Goods Valued Under $800 USD
Get your goods across the border quicker, cheaper and compliantly.
In the fast-paced online retail and e-commerce world, expediting the import process for goods valued under $800 USD can significantly enhance efficiency and competitiveness.
One powerful tool that online merchants can utilize is Entry Type 86 (T86), part of the “ACE Entry Type 86 Pilot.” This innovative approach allows businesses to leverage Section 321, a statute permitting the release of shipments valued under $800 per person, per day without duty, to include items regulated or non-regulated by PGAs for the first time.
With approximately 2 million shipments entering the U.S. daily, managing these imports efficiently is crucial. The T86 entry type facilitates this by using the Automated Commercial Environment (ACE) system’s “single window” approach, ensuring all relevant data is accessible to the necessary government agencies. This guide explores how leveraging T86 can streamline the import process for goods valued under $800 USD, helping eCommerce businesses expedite their operations and remain competitive in a dynamic market.
What is Entry Type 86?
Entry Type 86 (T86) is a streamlined customs entry process for low-value shipments. This voluntary entry type facilitates importing goods valued at $800 or less into the United States, making the process easier and more cost-effective for businesses and individuals. Initially created for regulated goods that didn’t qualify for de minimis before the T86 pilot launched, T86 is now a trusted program for importing eCommerce shipments into the United States.
Why Not Section 321?
Section 321 is suitable for both casual or commercial products.
Section 321 allows for the release of goods valued under $800 per day without duty, but it does not permit the import of regulated goods that require Partner Government Agencies (PGAs) oversight. T86 provides customs with more data for better decision-making and builds trust with traders. Products from PGAs that are ineligible for Section 321, can use T86. T86 also provides a trusted trader platform to show reasonable care within your import process.
Benefits of Entry Type 86
There are 3 primary benefits that importers of low-value shipments into the U.S. can experience utilizing the Entry Type 86 process.
1.
Increased Compliance
- T86 integrates with ACE “single window” system.
- Ensures regulatory compliance with partner government agencies.
- Unified data submission improves data control and enables duty drawbacks.
2.
Cost Savings
- Importers save on duties, fees, and taxes.
- Fewer delays at the border because customs have more data to make better decisions.
- T86 exempts Section 321 shipments from harbor maintenance tax and merchandise processing fee.
3.
Faster Clearance
- T86 expedites the clearance of compliant Section 321 shipments.
- T86 participation has reduced customs holds by a remarkable 90%; more data for customs = better decision-making.
- Importers meet tight deadlines and fulfill customer orders more efficiently, enhancing customer satisfaction and business reputation.
Does T86 require an importation/entry bond?
Hover for answerT86 does not require an importation and entry bond.
However, it is important to note that only if CBP deems the shipment is not eligible for de minimis and entry is required will a bond be required. ISF requirements for ocean freight remain the same for de minimis shipments.
See more FAQs here.
How Does Entry Type 86 Work?
Submit Entry Information Electronically
Provide shipment details through your customs broker. The data elements required for T86 include 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, Harmonized System Code (HS Code), Consignee Number, Commodity Description, Value of the Goods, Shipment Tracking Number, Carrier Code, Entry Type, Port of Entry, and Arrival Date.
These data elements are essential for ensuring compliance with customs regulations and facilitating the efficient processing of T86 entries.
Customs Review
The U.S. Customs and Border Protection (CBP) reviews the submitted information. This step involves verifying the accuracy and completeness of the data provided, ensuring that all regulatory requirements are met.
Clearance
Once approved, your goods are cleared for entry into the U.S. Importers receive a 7501, which is the entry summary form that documents the details of the import transaction. This form is critical for maintaining records and ensuring compliance with customs regulations.
Required Data Elements
T86 Entry
- 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
E-commerce Businesses
Companies that frequently ship goods valued under $800 USD directly to consumers can benefit greatly from T86. The streamlined process and cost savings make it an attractive option for e-commerce businesses looking to optimize their supply chain.
Individuals
Individuals who regularly import low-value goods for personal use can also take advantage of the simplified procedures and faster clearance offered by T86.
Owners and Purchasers
Individuals or entities who own the imported goods, including those who purchase goods for importation, can use T86 to streamline their operations. This includes e-commerce companies that act as both the owner and purchaser of imported goods.
Consignees
Individuals or entities to whom the goods are consigned or delivered. Consignees intending to file an Entry Type 86 must appoint a customs broker to act as the shipment’s importer of record (IOR).
Customs Brokers
Licensed customs brokers can be appointed by owners, purchasers, or consignees to act as the importer of record (IOR) for their shipments, facilitating the T86 process. However, there are risks for the broker in taking on this role, and some brokers may decline to act as the IOR. The benefits is that brokers ensure that all data requirements are met and that the import process runs smoothly.
What are the exceptions to Entry Type 86?
(Hover for answer)Mail, AD/CV duties or quotas, Tabacco/alcohol
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.
See more FAQs here.
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