For eCommerce businesses shipping to the U.S., customs clearance can be a bottleneck—leading to delays, unexpected fees, and compliance headaches. As cross-border shopping continues to surge, businesses need faster, more cost-effective ways to clear shipments through U.S. customs. That’s where Entry Type 86 comes in.
Designed under Section 321, Entry Type 86 allows for duty-free, electronic customs clearance of shipments valued under $800, streamlining the process for high-volume eCommerce sellers. By leveraging automated filing through the Automated Commercial Environment (ACE), businesses can move goods faster, avoid unnecessary fees, and ensure a smoother customer experience. But how does it work, and why should eCommerce brands use it? In this guide, we break down the whys and hows of Entry Type 86—and how it’s changing the way businesses handle cross-border fulfillment.
What is Entry 86?
Entry Type 86 is a customs entry process under the Automated Commercial Environment (ACE), introduced by U.S. Customs and Border Protection (CBP) to streamline duty-free imports under Section 321. It allows eCommerce businesses to electronically file low-value shipments (under $800) for faster clearance.
Before its introduction, businesses had to clear customs through either formal entry processes or the more complex informal Entry Type 11, which involved more paperwork and delays. Entry Type 86 was specifically introduced to handle the increasing volume of eCommerce shipments while ensuring compliance and security.
A key advantage of Entry Type 86 is that shipments are electronically filed in advance, allowing for pre-clearance before arrival. This eliminates unnecessary delays at customs and provides businesses with real-time shipment tracking and compliance oversight.
However, since Entry Type 86 falls under Section 321, not all products qualify. Goods requiring Partner Government Agency (PGA) approval—such as those regulated by the FDA, USDA, or EPA—may not be eligible. Despite these restrictions, Entry Type 86 remains a game-changer for many eCommerce brands seeking to optimize their international supply chains.
Section 321 and Entry Type 86: The Current Landscape
By nature, Entry Type 86 is linked to Section 321, which is the regulation allowing duty-free imports valued at $800 or less per day per person. It has long been a staple for eCommerce businesses that operate across borders, with several benefits including easier clearance process. Entry Type 86 is a further step in this direction.
Initially, Section 321 shipments were processed with minimal customs oversight, but as eCommerce surged, concerns about fraud, undervaluation, and compliance grew. To address these concerns, CBP introduced Entry Type 86, which requires shipments to be electronically filed in ACE with more detailed data, including:
- Harmonized System (HS) codes
- Detailed product descriptions
- Country of origin
This added transparency allows CBP to monitor shipments while still enabling businesses to benefit from fast, duty-free imports.
The Importance of HS Codes and Entry Type 86
One key distinction of Entry Type 86 is its mandatory use of Harmonized System (HS) codes. HS codes are international product classification codes used by customs authorities to determine tariffs, duties, and restrictions on imported goods.
While some businesses argue that HS codes add extra steps, the reality is that Entry Type 86 remains significantly faster than alternative entry types. Unlike Consolidated Freight Stations (CFS), which require paper documentation, or Express Consignment Carrier Facilities (ECCF), which involve additional fees, Entry Type 86 leverages digital automation for faster processing.
However, businesses must ensure accurate HS code classification, as errors can lead to shipment delays, penalties, or rejections. CBP also monitors HS codes for import trends, compliance, and potential violations, making proper classification essential.
How to Use Entry Type 86 for eCommerce Shipments
Step 1: Ensure Eligibility
- Shipment value must be $800 or less
- Items must not require PGA approval (e.g., FDA-regulated pharmaceuticals, hazardous materials)
Step 2: Work with a Licensed Customs Broker
Since importers cannot file Entry Type 86 directly, businesses must use a customs broker or a logistics provider with broker partnerships to handle the filing in ACE.
Step 3: Prepare Required Data in Advance
Unlike older customs processes, Entry Type 86 requires pre-clearance filing. The following details must be submitted electronically through ACE:
- Bill of lading
- Consignee details (name, address)
- Country of origin
- Entry number
- HS codes
- Fair retail value in the country of shipment
- Importer of record (IOR) number (for shipments requiring PGA data reporting)
- Planned port of entry
- Shipper name, address, and country
Step 4: Monitor for CBP Inspections
While Entry Type 86 expedites clearance, CBP may flag shipments for review. Businesses should be prepared to provide additional documentation if required.
Recent developments
⚠️ As of February 4, 2025, the U.S. government has proposed suspending Section 321 exemptions for goods imported from China. If enacted, all eCommerce shipments from China—regardless of value—would be subject to duties and tariffs.
This would significantly impact businesses relying on duty-free imports from China and could lead to increased costs. While this policy has not yet been fully implemented, businesses should stay informed about CBP updates and consider alternative sourcing or logistics strategies.
Advantages and disadvantages of Entry Type 86
As popular as Entry Type 86 has become among eCommerce businesses, it’s not for everyone, since no two businesses are exactly alike. We have already mentioned some of the advantages and drawbacks, so let’s summarize them and add a couple of new considerations.
Benefits
✔ Faster clearance – Pre-filed shipments move through customs more quickly.
✔ Duty-free under Section 321 – Reduces costs for eCommerce businesses.
✔ Better compliance – Digital filing ensures proper record-keeping.
✔ High-volume processing – Ideal for businesses shipping large quantities of low-value goods.
Drawbacks
⚠ Restricted items – Some goods require additional PGA approvals.
⚠ Increased CBP scrutiny – Higher compliance requirements than traditional Section 321 shipments.
⚠ Potential HS code challenges – Incorrect classifications can cause delays.
In short, Entry Type 86 is ideal for some, but not appropriate for others. What’s really important is awareness of the rules of the game.
Conclusion
Entry Type 86 offers a powerful way for eCommerce businesses to optimize cross-border fulfillment, ensuring faster customs clearance, lower costs, and streamlined compliance.
To fully leverage Entry Type 86, businesses should:
✅ Work with experienced customs brokers or fulfillment partners
✅ Ensure proper HS code classification
✅ Monitor CBP updates on Section 321 regulations
As U.S. import policies evolve, staying ahead of these changes will be critical for success in international eCommerce. You can contact ShipTop to discuss how we can help your business leverage the benefits of Entry Type 86.
