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Compliance Circular: October 2019

Posted by Ascent Global Logistics on Oct 8, 2019 12:46:32 PM

Section 321 Entries – Voluntary Pilot in Place

In the Tariff Act of 1930, U.S. Customs and Border Protection (CBP) authorized an exemption of duty and taxes under Section 321(a)(2)(C) for goods not over a designated value. Originally, that value was $200 - one $200 shipment per person per day, with minimal documentation required for entry. On February 24, 2016, the de minimis value was increased to $800 – one $800 shipment per person per day. This increase was part of the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA) and CBP implemented and met all TFTEA requirements by August of 2016.

To be eligible for the S321 entry, the following conditions have to be met:

  1. Valued $800 or less
  2. Imported by one person on one day
  3. Importer must have evidence of the value through a bill of lading or manifest
  4. Consolidated shipments addressed to one ultimate consignee will be considered one import
  5. No alcoholic beverage, cigars, cigarettes or smoking tobacco products are allowed under this provision
  6. This exemption does not apply to any absolute or tariff-rate quota merchandise
  7. Goods subject to IR tax are not exempted under S321

In 2017, the Commercial Customs Operations Advisory Committee (COAC) group began working with Customs on a way to automate the S321 through a new Entry Type 86. The Entry Type 86 would be a voluntary program, but it would offer importers a way to report Partner Government Agency (PGA) data as well as the 10-digit Harmonized Tariff Schedule (HTS) data and, in turn, would expedite clearance of compliant de minimis shipments as they entered into the United States. A goal was set for early 2019 for implementation but, due to various factors, it was pushed to later in 2019.

Effective October 1, 2019, the new pilot program for informal Entry Type 86 is now available for all customs brokers and self-filers to electronically submit their entries with considerably fewer data elements than a regular entry. The pilot will continue until concluded by an announcement published in the Federal Register. Comments are welcomed during this test period and may be sent to OTOTENTRYSUMMARY@cbp.dhs.gov. In the subject line of your email, please indicate “Comment on the ACE Entry Type 86 Test.” 

The electronic entry will provide a means to share details with appropriate PGAs and Customs while giving importers an expedited clearance. Additional data provided from e-commerce supply chain partners improves the risk assessment Customs performs and enhances security for those small, individual packages while exempting them from duties, taxes and fees. 

 The following information is required to be filed as part of the Type 86 entry:

  1. Bill of Lading/Air Waybill number
  2. Entry number
  3. Planned port of entry
  4. Shipper name, address and country
  5. Consignee name and address
  6. Country of origin
  7. Quantity
  8. Fair retail value in the country of shipment
  9. 10-digit HTSUS number
  10. IOR number of the owner, purchaser

If an Entry Type 86 is submitted to CBP and it is determined that any duty, tax or fee is owed on that merchandise, the entry will be rejected and will need to be filed using the appropriate informal or formal entry process per instruction by CBP. 

Ascent Global Logistics International would be glad to discuss this new entry type with you and see how it can improve your clearance time while providing valuable information to Customs and PGAs.

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Topics: Monthly Compliance Circular, International Trade, Compliance, International Trade Commission, International