New US rules implemented to tackle rise in low-value import shipments

Source: Air Cargo News
Date: 15th April 2024

A stricter customs requirement for low-value imports could result in delays to e-commerce shipments to the US.

From April 13, low-value Entry Type 86 shipment data sets have been required to be filed prior to or on arrival of the imported cargo.

Previously filing could take place up to 15 days after the arrival of the shipment.

If filed after the cargo has arrived, the entry will be rejected and the cargo will be held until a separate entry or appropriate entry type is made.

The cargo will no longer be eligible for Entry Type 86 clearance, which covers shipments up to a value of $800.

To comply, customs brokers will have to file complete, accurate and timely data sets including full product descriptions and HS codes.

Failure to meet the new Entry Type 86 requirements could result in customs brokers having to manage massive volumes of formal and informal entry clearances, something that is hugely labour intensive and time-consuming and ultimately impacting their clients and end consumers.”

If misconduct is identified and/or failure to exercise reasonable care in the execution of Type 86, penalties, administrative sanctions and liquidated damages may be imposed under any statutory authority or CBP regulations.

The CBP said that it had implemented the new requirement to help manage challenges associated with the rapidly rising number of small packages being imported into the US.

“These changes are being made in response to enforcement challenges surrounding low-value shipments entered via the ACE Entry Type 86 Test,” the CBP said.

“Such challenges include, but are not limited to, CBP’s efforts to prevent the importation of illicit substances like fentanyl and other narcotics, counterfeits and other intellectual property rights violations, and goods made with forced labor.

“CBP’s enforcement efforts for merchandise entered using entry type 86 have brought to light violations such as entry by parties without the right to make entry, incorrect manifesting of cargo, misclassification, misdelivery ( e.g., delivery of goods before release from CBP custody), undervaluation, and incorrectly executed powers of attorney.”

The changes also come at a time when a growing number of brokers, which have traditionally operated in the Business-to-Business (B2B) space, are moving into Business-to-Consumer (B2C) to take advantage of the opportunities for growth afforded by the huge volumes of consumer goods being shipped globally.

From April 1, CBP also implemented cargo messaging to communicate with the entry filer on shipments that have vague, non-compliant cargo descriptions.

Title 19 of the Code of Federal Regulations (CFR) requires a “precise or specific description of the merchandise” being imported.

Carriers and other parties electing to file electronic cargo information data to CBP are required to provide a precise description of the cargo.

The update is part of the drive by CBP to “address vague cargo descriptions including, but not limited to, ‘gift’, ‘daily necessities’, ‘accessories’, ‘parts’ and ‘consolidated’, the latter only being acceptable at master bill level.

While this update is not Type 86 titled, it is intended to address many of the issues that have been impacting CBP surrounding Type 86 non-compliant descriptions.

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