A huge policy shift, including both executive orders and legislative actions, mark the effective termination of the broad de minimis /Section 321 /Entry Type 86 exemption. This shift mandates a transition to more rigorous import procedures, primarily informal Entry Type 11 and formal Entry Type 01 entries. The implications for global e-commerce are far-reaching.
Re-evaluation of supply chain and fulfillment models are imperative to navigate this new regulatory environment successfully. High volume e-commerce importing is still possible via new processes.
Entry Type 86 (T86) was a simplified customs clearance that opened up Section 321 across all ports of entry and modes of shipping. Ocean containers filled with thousands of shipments cleared duty free with little oversight via this entry type.
It was particularly advantageous for high-volume, low-value direct-to-consumer (DTC) shipments. A key feature of T86 was its ability to extend Section 321 benefits to shipments that might require Partner Government Agency (PGA) oversight, leveraging the Automated Commercial Environment (ACE) system for enhanced compliance.
The cancellation of T86 was driven by several factors that mirrored the broader concerns about Section 321. It was perceived as a loophole exploited Chinese sellers importing millions of packages every day.
Managing new "Section 321 de minimis entries" processes requires much greater expertise in express clearance processes.
Informal entries are a simplified customs procedure for non restricted goods valued at less than $2,500. Unlike the former Section 321, which allowed duty-free entry, Type 11 entries are dutiable. Application of Trump duties are assessed. Despite being dutiable, informal entries retain a degree of simplification compared to formal entries.
The key qualifier for informal entries is non-restricted goods only with a value less than $2500. An informal entry may not be used for goods subject to quota, anti-dumping or countervailing duties (AD/CVD), or those identified as high-risk products. Additionally, certain regulated by partner of government agencies (PGS's) for goods, such as foods, cosmetics, supplements, most often require a formal entry.
Express consignment facilities were doing "e-commerce like clearances" before e-commerce was a thing!Largely associated with mega carriers FedEx, UPS and DHL, there are also independent facilities.The facilities operate via 19 CFR part 128 regulations (express consignment). Shipments importing via these facilities or subject to a per house waybill charge of around $1.34 (as of Nov 2025).
The key advantage is access to express clearance teams and not having to use a central examination station or CES. Also, these express facilities are well-versed in managing high volume parcel imports. Contact our team for an introduction to the main express facilities.
The challenge -beyond the duty cost itself - is managing the new processes. We draw on a team of experts with decades of experience to build informal entry processes. Yes, the costs are substantially more. But the opportunity to access the US market remains just that: A great opportunity. Perhaps even more so as competition is lessened by these new complexities.
Chinese e-commerce giants Shein and Temu clear US customs via both Type 11 and Type 01. They have established a US based company to serve both as the Importer of Record and as a middleman operation to lower the declared value.Even with a duty cost averaging over 50%, the volume of orders are maintaining at around the same volume (according to reports).
The life of an international e-commerce parcel can be deemed to start when a unique tracking number or house airway bill has been applied. This information is in transferred to a manifest (which can be viewed as a sort of packing list) preparing and organizing the goods for transport. In fact to the United States manifest information is required by customs prior to loading of the aircraft or vessel.
This manifest data in its most basic form includes the unique tracking identifier, shipper and consignee details, number of pieces, weight, and product description. This information can be transferred to create a consolidated informal entry. Additional information needed includes the harmonized code and manufacturer ID or MID. The MID can often be created systematically.
An important distinction between manifest, data and entry requirements is the description. Generally, the descriptions for e-commerce goods on manifest is to general. A clear and concise commodity description is essential for each product, such as "cotton t-shirts, women's sizes S–L," providing CBP with sufficient detail to confirm eligibility and proper classification. Generic terms like "electronics" or "various," or brand names alone, are not acceptable.
The country of origin, indicating where each item was manufactured or assembled, must also be declared (and typically not included in the manifest data).
Filing an Informal Entry Type 11 requires specific data elements to be provided to CBP. Each entry is identified by an 11-digit alphanumeric entry number, which comprises a 3-character filer code, a 7-digit entry number unique to the filer, and a one-digit check digit.
Comprehensive information about the Importer of Record (IOR) is mandatory.
Typically, the owner of the goods at the time of the import is the entity authorized to make entry (typically authorizing a customer broker to do so on their behalf). For a type 11 via a container freight station or express facility, the carrier or Express Consignment Operator (ECO) is able to do so.
Contact our team to explore importing options.
Formal Entry Type 01 is the default and most comprehensive customs procedure for commercial shipments entering the United States. We will not cover this in detail as it is simply a traditional entry.
It applies to any commercial shipment valued above $2,500. Beyond this value threshold, formal entry is also mandatory for specific categories of regulated or high-risk goods, irrespective of their monetary value.
Key categories of goods that necessitate a formal entry include:
The defining characteristics of formal entries are their requirement for detailed documentation, their subjection to applicable duties, taxes, and Merchandise Processing Fees (MPF), and the almost universal requirement for a customs bond to guarantee compliance and payment.
This issue of having a surety bond for increased duty amounts is paramount. Even if an express operator or facility agrees to make entry, they will require financial security in form of a bond or deposit.
Customs Bond Requirement: A customs bond is a mandatory requirement for almost all formal CBP entries. Its primary purpose is to guarantee the payment of required duties, taxes, and fees to U.S. Customs, as well as to ensure compliance with all applicable federal regulations.
In conclusion, while the discontinuation of Section 321 and Entry Type 86 by no means an end to efficient high-volume importing. Instead, these regulatory shifts require the adoption of new processes—primarily through the proper use of Informal Entry Type 11 and, where necessary, Formal Entry Type 01.
Contact Timothy Byrnes for a confidential consultation: t-byrnes@jetworldwide.ca