What Is Entry Type 86? A Complete Guide.

As a business, especially when you’re sending goods to customers in the United States, you want to save as much as possible. This means eliminating as many fees as possible during the logistics process. Luckily, with the help of Section 321 and Entry Type 86, you are able to do this as long as you meet certain criteria. 

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Below is everything you need to know about Section 321, Entry Type 86, and how you can claim it for your brand. Let’s get started. 

What is Section 321?

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Before we go further into the ins and outs of Entry Type 86, let’s look at what Section 321 is. The provision was created to help reduce the requirements you must meet at customs, as well as keep the overall costs of transport lower.

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Section 321 allows you to import goods valued at $800 or less per shipment duty-free. It’s great if you’re a business that wants to sell goods in the United States or bring any other products in to help your business without having to sacrifice profit on import fees and taxes. 

What is Entry Type 86?

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In September 2019, the CBP rolled out a test for a new informal entry type under Section 321. Known as Entry Type 86, it provides a faster entry process for low-value Section 321 shipments. 

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The goals of Type 86 are:

• Speed up processing time
• Improve security
• Enhance interagency communication
• Reduce costs

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However, although you don’t need to pay customs duty on merchandise valued at $800 or below, all of these shipments still need to be overseen by the US Customs and Border Protection (CBP). When you file the necessary documents electronically, Entry Type 86 allows CBP to ensure all regulatory requirements are being met, expediting the clearance process. 

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Low-value shipments subject to Partner Government Agency (PGA) requirements can also receive expedited entry through Entry Type 86. 

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You or the customs broker must enter the following data into the CBP’s Automated Commercial Environment (ACE) electronically:

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• Bill of lading or the 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 of the owner, purchaser, or broker (required when the shipment is subject to PGA data reporting requirements)
• Planned port of entry
• Quantity
• Shipper name, address, and country
• Harmonized System code (HS code)

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Using Entry Type 86, manifests of products are uploaded to U.S. Customs and Border Protection (CBP) while the packages are en route to the US.

Most packages are cleared automatically and immediately moved to a last-mile sorting facility upon arrival in the US; a very small subset are occasionally held for an additional day or two for inspection before being cleared.

How can your brand claim it?

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We’ve gone over what Entry Type 86 is and how it works. But how can your brand claim it? Here is a simple step-by-step guide to follow:

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1. Ensure your goods meet the eligibility criteria. For example, they must have a retail value of $800 or less, and they must not be subject to import restrictions.
2. Prepare your necessary documentation, as mentioned above, ensuring you have all the correct information needed to input into the ACE.
3. If you don’t already have an ACE account, create one. You can do this simply on the website. 
4. File each of your documents electronically, and add any other relevant information about the shipment, including the value, description of goods, and relevant codes. Ensure you indicate Entry Type 86 during the filing process. 
5. Ensure your products meet regulatory compliance so that they can be cleared by PGAs such as the FDA, USDA, or EPA.
6. Maintain records of all the documents and electronic filings you have made for the import for at least the next five years. 

Conclusion

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If you’re a business, especially e-commerce, and you wish to transport and sell goods into the US without paying customs duties and taxes, then Section 321 and Entry Type 86 can do a lot for you. All you need to do is ensure you follow the right specifications, such as your goods being under the value of $800 and following the electronic filing process without any mistakes.

For additional help with using Entry Type 86, Portless is here to help. We’re a 3PL company based in China that has all the know-how on how to accurately file the right documents and information, ensuring an expedited and fee-free process. Contact one of our experts today to get started.