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

Credit: one photo/ Shutterstock

Customs technology provider Hurricane Commerce has warned that stricter customs requirements for low-value imports could result in delays to e-commerce shipments to the US.

The tech firm said that from April 13, low-value Entry Type 86 shipment data sets have been required to be filed prior 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.

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

Laurie Cieciuch, partnership director at Hurricane Commerce, said: “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 company said.

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 prior to release from CBP custody), undervaluation, and incorrectly executed powers of attorney.”

Hurricane added: “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.”

The software firm added that from April 1, CBP had 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,” Hurricane said.

Unsworth prepares customers for new UK import rules for EU animal and plant shipments

Share this story

Related Topics

Latest customs news

WFS helps screen cargo at JFK

Worldwide Flight Services (WFS) is to operate a new Centralized Examination Station at New York’s John F. Kennedy (JFK) International…

Read More

Share this story

A third of exporters still need to switch to Customs Declaration Service

Up to one-third of exporters still need to switch to the UK’s Customs Declaration Service (CDS) for exports as there…

Read More

Share this story

Fiata develops model agreement for PLACI multiple filing

Freight forwarder association Fiata has launched a new agreement to help companies manage new requirements from governments for shipment information….

Read More

Share this story

Damian Brett

Damian Brett
I have been writing about the freight and logistics industry since 2007 when I joined International Freighting Weekly to cover the shipping sector.After a stint in PR, I have gone on to work for Containerisation International and Lloyds List - where I was editor of container shipping - before joining Air Cargo News in 2015.Contact me on [email protected]