Since its inception, Entry Type 86 has been the backbone of e-commerce businesses that rely on low-value shipments. This is because it allows all packages under the De Minimis value of $800 to clear customs with minimal hassle.
That said, things changed on May 2nd, 2025—the customs process is getting stricter, and the list of exemptions is smaller. The news is especially grim if your e-commerce business relies on imports from China and Hong Kong.
This blog will explain everything you need to know about Entry Type 86, from its introduction to the more recent rules that will impact its functioning. Read on!
A Brief History of Entry Type 86
Entry Type 86 was introduced (in 2019) by the US Customs and Border Patrol (CBP). It was intended to be a test (and voluntary) program to help facilitate a more efficient means of customs clearance for low-value shipments whose volumes were skyrocketing.
Until then, all low-value shipments under the De Minimus value set by Section 321 of the Tariff Act had to either go through the formal entry process (a time-and resource-intensive process for Customs Officials) or the even more intricate Entry Type 11.
Entry Type 86 changed all that. It modernized the Customs clearance process and proved that this new method could handle large volumes at speed and with improved regulation.
That said, speed and volume were the only goals with Entry Type 86, and enforcing accountability was also a key driving factor. From the POV of anyone using Entry Type 86, the trade-off was simple: give up more shipment data for faster customs clearance.
From the CBP’s POV, they gained access to all shipment-related data even before the package arrived, giving them and their partner agencies crucial time to ensure everything was in order without delaying the customs clearance.
Over the years, the Entry Type 86 saw several key changes:
- The filing window was tightened: What used to be a 15-day grace period post-arrival was changed to a “prior to or upon arrival” requirement, and if you missed that deadline, ACE rejected the entry.
- Automation took over: All non-compliant entries with inaccurate information or missing data were rejected automatically.
- Scrutiny increased: Any misclassified goods, premature deliveries, or shady manifest data leads to penalties or worse, suspension of import licenses.
What Changed On May 2, 2025, And What Does It Mean For You?
Entry Type 86 will undergo some of the biggest regulatory changes. Here are the most important ones.
Shipments Coming From China And Hong Kong
If your e-commerce business depends on imports from China or Hong Kong, your customs clearance process will get a lot more complex. The following are the changes originating from the locations above:
- No De Minimis exemption: The De Minimis exemption that Section 321 granted will no longer apply to goods from China and Hong Kong. As a result, you can no longer use Entry Type 86 and will need to clear customs either via the formal or informal entry route.
- Heavy Duties on Shipments using the Postal Service: If your shipments from these locations come via the postal service, you will incur a 54% duty or choose to pay $100 per item.
Shipments Coming From The Rest Of The World
CBP has also proposed a new entry system that will affect all low-value imports, not just those from China and Hong Kong. The following is what you can expect.
- A New Enhanced Entry Process (EEP): Under this proposal, all shipments will require the submission of additional data, such as full HTS codes, accurate and detailed buyer and seller information, a Clearance Tracing ID Number (CTIN), any relevant PGA documentation, and more.
- Additional Updates to the Basic Entry Process: The BEP will also require additional documentation, even for less complex imports, like a full 10-digit HTS code, detailed product descriptions, and additional sender/receiver metadata. (Source)
Another critical change concerns how the de minimis exemption is applied; specifically, only those who qualify as “one person” are allowed to claim that exemption per day. Until now, the interpretation was broad and somewhat flexible, which allowed businesses to bypass the limits.
The proposed rule clarifies that “one person” refers strictly to the owner or purchaser of the goods, so importers cannot skirt around the $800 limit by billing multiple shipments under the shipper, seller, or logistics provider.
What Does This Mean For Your E-Commerce Business?
As a result of all the above changes, you are going to see:
- Your landed costs are going up (possibly by a lot).
- You will have to rethink your entire customs clearance workflow to adhere to the above requirements.
Data First Customs Clearance—Your Best Strategy Going Forward
Based on everything discussed thus far, you may have noticed a consistent pattern: CBP wants more data for better visibility into your shipments. Here is how you can adopt this “Data-first” strategy practically.
Be Proactive With Data
Although the changes to the Basic entry process and the Enhanced Entry Process haven’t been enforced yet, it’s clear that the more visibility you give CBP upfront, the smoother the customs clearance process will be.
With that in mind, proactively submit all relevant data, like the HTS codes or the Clearance Tracing ID Number (CTIN). If the customs officials have all the data they need, your shipments will go through the process quicker.
Submit All Entries On Time (With Accurate Data)
CBP is now automatically rejecting entries that arrive late, contain inconsistencies, or contain inaccurate data. If there are any lapses, your entry won’t even make it through the system.
In short, with the upcoming changes, you need to be prepared to handle the large volumes of paperwork that weren’t necessary until now and file them on time and accurately. If you aren’t equipped to do this, it might be time to consider working with a digital customs broker seriously.
What Are Digital Customs Brokers? How Are They Different from Traditional Brokers, and How Do You Pick Between Them?
Digital customs brokers, at their core, offer the same services as traditional customs brokers do, i.e., they help you file your entries and clear customs.
The difference between the two is that while the latter relies on manual processes, emails, and paperwork (with a fair bit of digitization), digital customs brokers work off of an online platform that directly connects to the CBP’s systems, i.e., the Automated Broker Interface(ABI).
Working with a digital customs broker will also give you the following value adds:
- They can re-verify and validate your entries before submission, and
- They let you monitor the entire clearance process from a single dashboard.
So, how do you choose between the two?
If your shipment volumes are low or you want highly personalized support gained from building a working relationship over the years, traditional brokers might be a good option.
However, if you are a business (especially an e-commerce one) that will now have to file large volumes of entries with the De Minimis benefits now ending, a digital broker that provides a tech-laden customs clearance platform and services will be your best bet.
Why E-commerce Businesses Are Working with CustomsCity
CustomsCity is a leading digital customs broker platform that offers a comprehensive way to meet the needs of modern customs compliance. We’ve seen firsthand how much the expectations around customs compliance have evolved since Entry Type 86 was introduced, and we have developed our platform continually in parallel.
We support electronic filings through the Automated Broker Interface (ABI), helping importers submit entries like Type 86, Type 11, and Type 01 with minimal manual effort. Our system also connects directly with CBP’s ACE platform, allowing for smooth, real-time interaction with customs systems.
Considering short filing windows, increased documentation, and higher compliance risks, our tools, which facilitate real-time manifest querying, FDA Prior Notice handling, and data validation, are some of the key reasons why e-commerce businesses are choosing us as their digital customs broker platform.
Summing It Up
Based on the current trajectory, the future of customs clearance, especially for e-commerce businesses, will be shaped by how well they can handle, manage, and offer relevant data to customs officials.
The sooner you adopt this data-first approach, the better off you will be with your shipments through customs.
If you want to get ahead of your competition, now is the time to implement the right systems. Contact CustomsCity or book a demo to learn how we can help you do just that!
Frequently Asked Questions
Modern customs compliance software solutions go beyond Type 86 by using data automation and validation to support multiple entry types, higher shipment volumes, and evolving CBP requirements. Instead of relying on a single clearance method, these platforms help eCommerce businesses adapt as regulations, thresholds, and enforcement priorities change.
High-volume eCommerce operations generate massive amounts of shipment data, making manual compliance risky and inefficient. Data-driven customs compliance software solutions use automated checks, rule-based logic, and real-time validation to reduce errors, prevent delays, and ensure shipments clear smoothly as volume scales.
Yes. While Type 86 is useful for low-value, high-frequency shipments, growing eCommerce brands often need more flexible clearance options. Customs compliance software solutions help businesses transition seamlessly between entry types, manage duty calculations, and maintain compliance as order values, product categories, and destinations expand.
CustomsCity provides customs compliance software solutions designed for modern eCommerce operations, combining automated filings, intelligent data validation, and expert support. This approach helps businesses stay compliant today while remaining agile as CBP policies, technology, and cross-border trade requirements continue to evolve.
