Entry Type 86 is a voluntary entry type for the filing and electronic release of eCommerce shipments that qualify under CBP’s de minimis (<= $800 USD). Shipments qualifying under the CBP de mimimis are also known as Section 321 shipments. Type 86 entries have to be filed by a self-filing importer or customs broker. A low-value eCommerce shipment that qualifies for Entry Type 86 will need to have a total value of no more than $800 in the country of origin. This $800 can be imported by any individual or company daily. Type 86 entries do not require a CBP customs bond.
Power of Attorney & IOR (Importer of Record)
Entry Type 86 is deemed customs business due to the requirement of the Harmonized Tariff Schedule (HTS) that classifies merchandise within a shipment. Shipments eligible for Entry Type 86 will not be subject to duties or taxes but if the shipment is required to pay any CBP fees the shipment will need to clear under a Type 11 informal entry or a Type 01 Formal Entry.
The POA (Power of Attorney) is a required document between the importer or nominal consignee and the customs broker. The nominal consignee is usually the party who will sign the POA with the customs broker for Type 86 entries. A nominal consignee is usually the party that is representing the exporter, importer or consolidator of the cargo. There is no such requirement for the customs broker to collect a POA from every individual consignee which can number in the thousands.
The IOR-Importer of Record for Type 86 entries can be the consignee name & address instead of the IRS#. The importer of record number (IOR) number is mandatory depending on relevant Partner Government Agency requirements.
Entry Type 86 Shipment Regulations
To ensure that filers do not exceed $800 per day, per person de minimis requirement, CBP asks that all persons or agents participating comply with statutory limitations regulating this entry type in addition to exercising reasonable care. According to the regulations, if CBP officials believe a consignment has several lots covered by a single contract or order, and that the importer sent it separately to benefit from de minimis exemptions then that consignment will not be accorded duty-free entry. It is also important to note that the importer cannot consolidate multiple consignments into a single Entry Type 86. Only the details of one bill of lading (master or house) can be submitted for the Type 86 entry.
Entry Type 86 & PGA’s
Any PGA (Participating Government Agency) regulated commodity that is required to have PGA data submitted to CBP is eligible for entry Type 86. But any PGA controlled merchandise that necessitates fee collection will not qualify for entry type 86. A critical thing to note is that any goods that are subject to countervailing duty/anti-dumping, certain alcohol, and tobacco products, and goods that are subject to quotas cannot be filed under Entry Type 86.
You can typically file an Entry Type 86 for commodities under Chapter 98 classification. In some instances, you only need to provide the subheading from the Harmonized Tariff Schedule of the United States. But filers will have to use the 10- digit HTS numbers if the merchandise falls under chapter 1-97 classification. The HTS data is collected by the CBP as it is crucial in determining the nature of the cargo coming into the US under Entry Type 86.
You are allowed to file a Type 86 under Chapter 99 as long as the HTSUS number that falls under chapters 1-97 is also submitted. When using Chapter 99, it is important to note that some goods are subject to PGA regulations such as quotas, anti-dumping and countervailing duties among other of the Internal Revenue Code that makes them ineligible for de minimis entry. In such instances, the formal entry would be more appropriate.
Entry Type 86 Trade Remedy
An entry that is subject to Section 301 requirements can still be filed as an Entry Type 86 as long as it meets de minimis requirements and there is no subsequent notice barring such entry.
Entry Type 86 can also be applicable for Section 201 entries similar to entries that are subject to Section 232 requirements. However, Section 232 consignments will need to meet de minimis requirements though it is important to note that any cargo that is subject to quota restrictions is not eligible for informal entry or de minimis exemptions.
Entry Type 86 Modification
Filers may make corrections/modifications to Entry Type 86 filings or cancel them altogether before release. However, a Post Summary Correction is impossible with a de minimis entry.
Type 86 Volume Restriction Recommendations from CBP
Recommendations for Ocean Carriers and NVOCCs:
- Limit master bills to a maximum of 10,000 related house (NVOCC) bills
- File all master and house bills before any Type 86 entry filings
Recommendations for Truck Carriers:
- Single Truck trips should contain no more than 100,000 shipments in Truck ACE eManifest, but the carrier can file multiple truck trips for a single crossing also known as a split shipment in trucking
Recommendations for Entry Type 86 Filers:
- Do not file Type 86 entries until all of the related bills are filed in the AMS (Automated Manifest System)
- Limit AMS OCEAN Type 86 entry filings to 20,000 – 30,000 entries per hour.
- Limit AMS AIR Type 86 entry filings to 20,000 – 30,000 entries per hour.
- Send Update transactions only for the specific entries that require correction. Do send NO CHANGE Update transactions.
- Hold ACE Cargo Manifest queries until the entry processing is completed. ACE Cargo Manifest queries will not return responses while the entries are still being processed. When querying a large master bill of lading with more than 10,000 house bills, processing time and response output size can be reduced by requesting a specific house bill or a specific master bill, without the related house bills.