What is Section 321, Entry Type 86?

Entry Type 86 under Section 321 is a voluntary entry type for electronic release and filing of eCommerce shipments which qualify for the de minimis regulations of Customs & Border Protection Agency (CBP). The de minimis provisions define goods that qualify for an Entry Type 86 as any shipment with a retail value of $800 or less in the country of origin.

These entries will typically be filed by a purchaser or owner of the goods or if not by a designated customs broker appointed by the consignee, nominal consignee, purchaser, or owner of goods. It is important to note that consignees are required to appoint a customs broker as the importer of record or ABI filer if they intend to submit such an entry to CBP. As such, customs brokers need to have the power of attorney that authorizes them to conduct customs business on behalf of the consignee, nominal consignee, purchaser, or owner of eligible goods.

However, Type 86 entries do not require a CBP customs bond and should not be subject to fees, taxes, and duties. Nonetheless, any cargo requiring fee collection will need to file a Type 11- Informal Entry or Type 01- Formal Entry.

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Entry Type 86 Shipment Regulations

CBP expects all agents and persons that participate in this type of entry exercise reasonable standards of care and responsibility to comply with the statutory regulations for de minimis entries.

To ensure compliance the port director at the port of entry is charged with checking shipments for any violations. If the CBP official believes an owner intends to secure free duty & tax entry by sending multiple shipments separately even though it is several lots that are part of a single contract or order, CBP will refuse duty-free entry for such a consignment.

Importers are not allowed to consolidate multiple shipments into one Entry Type 86 and only one bill of lading (Master or House) can be on a de minimis entry.

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Entry Type 86 and PGAs

Any Participating Government Agency (PGA) regulated consignment can be eligible for entry type 86 as long as the HTS code has a PGA flag that is required to submit PGA data to Customs & Border Protection Agency (CBP). Any cargo regulated by PGAs that need fee collection will not be eligible for Entry Type 86. The data includes a PGA message set and may include any HTS that may have associated disclaims.  Customs City has an easy to use interface that can apply the correct disclaim codes at the click of a button.

Disclaim PGA flags are the following:

                                     PGA Tariff Flag Code Agency Code
 

·       Environmental Protection Agency

EP1 EPA
·       National Marine Fisheries Service NM1 NMF
·       National Highway Traffic Safety Administration DT1 NHT
·       U.S. Department of Agriculture- Animal & Plant Health Inspection Service AL1 APH
·       Food & Drug Administration FD1 FDA
·       USDA Agricultural Marketing Service AM1 AMS
·       Department of the Treasury- Alcohol & Tobacco Tax & Trade Bureau TB1 TTB
·       Department of the Treasury- Alcohol & Tobacco Tax & Trade Bureau TB3 TTB
·       U.S. Department of Agriculture- Animal & Plant Health Inspection Service AQ1 APH
·       Office of Marine Conservation OM1 OMC
·       Fish & Wildlife Service FW1 FWS
·       Drug Enforcement Administration DE1 DEA

Before any Type 86 transaction can be sent to CBP, there must be a corresponding manifest at the house or master bill level for the type 86 transaction to link to.

Note that there are goods that cannot be filed under Entry Type 86 such as:

  • Goods subject to countervailing duty or Antidumping policies
  • Goods subject to taxation under the Internal Revenue Code
  • Certain alcohol and tobacco products
  • Goods subject to quotas

You can use HTS from chapter 98 or chapter 99 commodities with Entry Type 86 using the Harmonized Tariff Schedule of the United States (HTSUS) classification.  If using chapter 99 you must include the underlying HTS from chapters 1-97.

Upload Type 86 PGA Disclaim Codes

Entry Type 86 Trade Remedy and Modification

Any entry that is currently subject to Section 301 and Section 201 duties may be filed under Entry Type 86. Entries subject to Section 232 may also be filed as de minimis shipments. However, any cargo that is subject to quotas will not qualify for informal entry or be eligible for the de minimis exemption.

As for modification, Entry Type 86 filing can be corrected before release even though a post summary collection is not allowed. Still, this type of entry may be cancelled.

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Entry Type 86 filing Data Elements

The Entry Type 86 needs the purchaser, owner or customs broker appointed by the consignee, nominal consignee, purchaser, or owner to file the following elements with the CBP before arrival, upon arrival but no later than 15 days after arrival at the port of entry.

  1. The Air waybill number or bill of lading
  2. 10 digit HTS number
  3. Entry number
  4. Mode of Transport
  5. Fair retail value of the goods in the country of origin
  6. Planned port of entry
  7. Quantity
  8. Seller name, country, and address
  9. Country of origin
  10. Consignee name and address
  11. Importer of Record number of the purchaser, owner, or broker if designated by a consignee (PGA shipments)
Upload Type 86 PGA Disclaim Codes

How to Upload Entry Type 86 Using Customs City Software

Air Cargo

ACE Air– The Customs Broker will upload the ACE Air (AMS Air) manifest information at the house bill level (HAWB)

Submit Entry Type 86 – The Customs Broker will submit the T86 filing directly to the Customs & Border Protection agency using the e-commerce Customs Compliance Solution provided by Customs City.

Electronic Release – Once the data is submitted to CBP, the system will produce an electronic release typically within seconds to minutes (depending on the volume of transactions submitted)

Ocean Cargo

ACE OceanThe NVOC will upload the ACE Ocean (AMS Ocean) manifest information at the house bill level (HBL)

ISF (Importer Security Filing)The NVOC or Customs Broker will upload the ISF “10+2” data

Submit Entry Type 86 – The Customs Broker will submit the T86 filing directly to the Customs & Border Protection agency using the e-commerce Customs Compliance Solution provided by Customs City.

Electronic Release – Once the data is submitted to CBP, the system will produce an electronic release typically within seconds to minutes (depending on the volume of transactions submitted)

Upload Type 86 PGA Disclaim Codes

eCommerce Release for Section 321 Shipments

The Customs City solution has a Mass Upload feature that provides a less complex and faster method for the Release of T86 ( Section 321 de minimis consignments.) The EDI/API option or the Large Volume Upload feature makes it possible to upload thousands of House Bills & Type 86 data to obtain the release for thousands of shipments within minutes.

The solution has several functions that eliminate the time consuming and tedious task and does the following:

  1. Upon the upload of the House Bill, it performs automatic analysis and determination of applicable PGA flags
  2. Makes it possible to mass disclaim PGAs when uploading Type 86 shipment data
  3. Modify columns to filter out Released, Held, Accepted, and Rejected status records
Upload Type 86 PGA Disclaim Codes

Why Choose Customs City

Customs City is your all-in-one solution for clearing eCommerce shipments for all modes of transport including air, ocean & truck.  Ensure customs compliance by partnering with Customs City and make us part of your compliance team.