Entry Type 86 & De minimis Shipments - Frequently Asked Questions (FAQs)

Designed to streamline the customs clearance process for de minimis ecommerce shipments valued at $800 or less, U.S. Customs and Border Protection (CBP) introduced the Section 321 Automated Commerce Environment (ACE) Entry Type 86 Test. The voluntary program is geared to enhance CBP and Partner Government Agency (PGA) visibility into Section 321 shipments, identify high-risk goods, and to expedite the release process.

Since the test's implementation in 2019, ecommerce has surged, with de minimis shipments increasing significantly. In fact, section 321 bills of lading (BOLs) under entry type 86 rose from 122.1 million shipments in 2020 to 623.1 million in 2023 (Source: CBP). In response to this growth and the need for tighter compliance, CBP has updated the ACE Entry Type 86 Test, now requiring brokers to file entry type 86 either “prior to or upon arrival” of the cargo, rather than within 15 days of arrival. This will ensure CBP has sufficient time to review entries for compliance and notify filers of any potential holds.

CBP has implemented added scrutiny on T86 de minimis entries since some shipments did not contain accurate descriptions or only contained vague descriptions. CBP has also discovered instances of invalid consignees which makes tracking the chain of custody throughout the supply chain challenging. There are also concerns about low-cost goods flooding the U.S., decreasing the ability of U.S. businesses to compete. In addition, there is a focus on those who have breaking down cargo and de-consolidating to values below $800 to skirt the regulation to avoid remittance of duties and fees or to import prohibited items.

Data quality and industry collaboration are vital to maintain compliance. CBP relies heavily on accurate trade data from partners to ensure the smooth flow of legitimate trade and to detect and prevent high-risk goods from entering the U.S. Inaccurate or incomplete data can lead to delays, fines, or even shipment seizures, which can significantly impact both the bottom line and operations—especially given the growing consumer demand for fast and affordable ecommerce deliveries.

Implementing advanced systems for customs data filing, combined with real-time tracking and visibility tools, can help businesses quickly address issues and comply with Section 321 regulations. This approach ensures that end customers receive goods promptly while adhering to regulatory requirements.

Given the substantial volumes of de minimis shipments and the increased scrutiny, manual determining the correct Harmonized System (HS) codes, product descriptions, and valuations is impractical. Technology is crucial for scaling compliance effectively. Automating repetitive tasks and using compliance management software with built-in checks, validation rules, and audit trails can significantly streamline the classification and filing processes as well as enhance overall compliance levels. This means that businesses can enjoy the speed of T86 shipments without added labor or potential delays.

Navigating changes to de minimis shipments can complicate compliance, leading to customs clearance delays and unhappy customers. Brokers may face significant challenges if they do not meet the new filing requirements and some could face a volume of data corrections. To overcome these challenges, investing in technology that automates compliance processes and ensures accurate, timely filings is crucial.

Implementing rigorous quality control checks before submitting Section 321 shipments to CBP is essential. Ensuring accurate classifications, clear product descriptions, and correct weights and values is crucial. Additionally, maintaining complete, accurate, and accessible documentation (e.g., commercial invoices, packing lists) is necessary for compliance with CBP’s de minimis regulations.

The growth of the Section 321 Type 86 Pilot program reflects its effectiveness in facilitating low-risk shipments while enhancing risk management. Future policy changes could impact the eligibility of goods under the program. The broader trend towards digital transformation in trade facilitation suggests that governments will increasingly use technology and data to modernize customs processes and improve risk management. Look for a solution provider that is committed to your long-term compliance and operational success in the competitive ecommerce shipment market.

Descartes leverages its strong relationship with CBP and industry committees to anticipate regulatory changes. Descartes employs agile development methods to quickly update systems in line with CBP's implementation dates. Additionally, Descartes provides resources like the U.S. Section 321 Type 86 Resource Center and conducts educational outreach to help customers adapt to the changes. We also ensure that our back-end technology and data can seamlessly transmit to CBP to speed compliance.