Entry Type 86 is a voluntary test that is usually filed by a customs broker appointed by the owner, purchaser, or consignee.
To qualify for Entry Type 86, the merchandise brought into the United States must have an aggregate retail value of $800 or less in the country of origin.
Power of Attorney and Brokers
The customs broker must have the power of attorney (POA) as a filer of Entry Type 86 consignments. As such they must be authorized by the nominal consignee, purchaser, or owner of eligible goods to conduct customs business on their behalf. In Type 86, the name & address of the consignee fulfills the IOR (importer or record) requirement.
Will You Need Entry Numbers? PGA Requirements?
Entry Type 86 is designed for eCommerce de minimis shipments and each entry will have an associated entry number. The Importer of Record number (IOR) is required if there are Partner Government Agencies (PGA) requirements. The choice for the IOR number is the EIN, SSN, or CBP assigned number for non-US residents. PGA requirements can be confirmed by looking up the applicable HTS codes and checking for PGA flags such as FD2, FD4, etc.
eCommerce shipments released on the manifest can not include PGA commodities. Clearing shipments using Type 86 allows the inclusion of PGA shipments.
Is Entry Type 86 Considered “Customs Business?”
Entry Type 86 is deemed customs business under the Harmonized Tariff Schedule of the United States, which requires merchandise under entry Type 86 classified with a 10-digit level HTS code.
Still, while Entry Type 86 shipments are deemed customs business they are usually not subject to duties, taxes, and fees like other shipments. However, filers will need to file other documents such as Type 11 Informal Entry or a Type 01 Consumption if the merchandise requires the collection of fees.
Bond Requirements for Entry Type 86
Lastly, it is critical to note that, filers will not have to deal with bond requirements. However, the CBP may find that merchandise does not qualify for de minimis treatment. In such an instance, CBP will require the filer to bring in the consignment under formal entry procedures, which will then require a bond if one is required to file a Type 01 Consumption Entry.
CBP Compliance
CBP expects all filers that take part in the Type 86 Entry pilot will be reasonably careful and do their due diligence to comply with the de minimis provisions set out in the law and regulations.
Breaking up Shipments
According to the rules, shipments cannot be broken up so that a filer can take advantage of de minimis exemptions. Similarly, a filer cannot consolidate multiple shipments into one so that they can qualify for Entry Type 86.
CBP has put in place measures to ensure that filers do not exceed the de minimis requirements of $800 per day. This means that 1 person or business can import $800 per day duty & tax-free.
In that regard, if a port director believes that a shipment has been broken up for such purposes when it is a single contract or order, or that it was delivered separately so that it can get free entry, then they must apply the applicable duty to that consignment.
Entry Type 86 Admissibility Questions
Any regulated commodity that would be subject to the collection of fees is not qualified to enter under Entry Type 86.
Some goods cannot be filed under Entry Type 86 which includes: Any goods that are subject to taxation under the Internal Revenue Code, alcohol and tobacco products, goods subject to quota, and goods subject to Countervailing/Antidumping (CVD/AD)
Filing an Entry Type 86 for Chapter 98
Filers are allowed to file Entry Type 86 for Chapter 98 commodities under Special Classification Provisions. In some instances, the only designation available may be a subheading under Chapter 98 of the HTSUS. Still, filers may use Chapter 1-97 classification if applicable to the merchandise being imported.
While Chapter 98 classifications can be very convenient, it is critical to recognize that any goods such as those subject to taxation under the Internal Revenue Code, alcohol and tobacco products, and goods subject to quota or countervailing duty/antidumping are ineligible for Entry 86 and must be filed under formal entry procedures.
Filing an Entry Type 86 for Chapter 99
Filers may file an Entry Type 86 for Chapter 99 commodities if the HTSUS number under Chapter 1-97 classification is provided. When filing under Chapter 99 provisions, it is critical to recognize that certain goods are subject to taxation under the Internal Revenue Code, certain alcohol or tobacco products, and goods subject to quota or countervailing duty/antidumping are not eligible for Entry Type 86 and will have to undergo formal procedures.
Entry Type 86 Trade Remedy Questions
Barring subsequent notice, an Entry subject to Section 301 that qualifies for de minimis requirements is allowed to be filed under the new Entry Type 86 procedures. Entries subject to 201 are also qualified and eligible for filing under Entry Type 86.
Entries subject to 232 that qualify for de minimis requirements can also be filed under Entry Type 86 procedures. However, it is important to note that merchandise that is subject to quotas is not eligible for informal entry procedures nor does it qualify for de minimis exemptions.
Entry Type 86 Modification Questions
An Entry Type 86 can be corrected before release but a Post Summary Correction is not possible for an Entry Type to 86 consignments. However, an Entry Type 86 can be canceled. Bill of lading information on Type 86 may also be sent as an “update” up to 15 days after the release of the shipment.
