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US Customs gets tough with e-commerce importers

[ April 15, 2024   //   ]

Cross-border ecommerce shipments to the US face being rejected under changes introduced to Entry Type 86 in April, warnings tech firm Hurricane Commerce.

Entry Type 86 is a customs clearance procedure for low value shipments imported by one person on one day with a value not more than $800.

However, from 13 April US Customs and Border Protection has updated its to the Automated Commercial Environment (ACE) with a requirement for Type 86 transactions to be filed, including full product descriptions and HS codes prior to or on arrival of the cargo. 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.

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 and will no longer be eligible for Entry Type 86 clearance.

Hurricane says the change has huge implications for customs brokers importing into the US, particularly from major global ecommerce centres such as China and India.

Hurricane Commerce partnership director, Laurie Cieciuch, 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.”

The changes also come at a time when a growing number of brokers, which have traditionally operated in Business to Business (B2B) are moving into Business to Consumer (B2C).

In another significant change, from 1 April, CBP implemented national cargo messaging to communicate with the entry filer on shipments that have vague, non-compliant cargo descriptions.

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.

The CBP said: “Brokers and freight forwarders who self-file House Bills are held to the same standard as carriers and are expected to screen data for compliance with cargo declaration regulations. The entry filer is expected to review the cargo messages for compliance when concerns are identified.”

Hurricane says its Zephyr API has been built to handle the huge volumes involved in cross-border ecommerce in which automation is key and where the tech must be highly scalable.

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