What is Section 321 and Entry Type 86?

Section 321: Duty-Free Entry for Low-Value Shipments

What is Section 321?

Section 321 of the Tariff Act of 1930 allows for the duty-free entry of goods into the United States, provided that the total value of the shipment does not exceed $800. This provision is particularly useful for e-commerce businesses and individuals who frequently import small quantities of goods.

Key Features of Section 321:

• Duty-Free Entry: Shipments valued at $800 or less qualify for duty-free entry, meaning no duties or taxes are assessed on these imports.

• Simplified Documentation: Section 321 reduces the amount of documentation required for customs clearance, streamlining the import process.

• Single Daily Entry Limit: Importers are allowed one Section 321 entry per day, per person or company, ensuring that this provision is used for genuinely low-value shipments.

Benefits of Section 321:

• Cost Savings: By eliminating duties on low-value shipments, Section 321 reduces the overall cost of importing goods into the U.S.

• Faster Clearance: With less paperwork and streamlined procedures, Section 321 entries typically clear customs more quickly than higher-value shipments.

Entry Type 86: A Modern Solution for Low-Value Shipments

What is Entry Type 86?

Entry Type 86 is a relatively new entry type introduced by CBP to further streamline the clearance process for low-value shipments. Specifically designed for e-commerce and small parcel shipments, Entry Type 86 enables importers to electronically submit entry information for goods valued at $800 or less, which are eligible for Section 321 treatment.

Key Features of Entry Type 86:

• Electronic Submission: Entry Type 86 allows for the electronic filing of customs entries, reducing the need for manual processing and paperwork.

• Eligibility: Like Section 321, Entry Type 86 is available for shipments valued at $800 or less. However, Entry Type 86 also allows for the entry of goods subject to certain restrictions or regulations, provided all requirements are met.

• Efficient Processing: This entry type is designed to integrate with CBP’s Automated Commercial Environment (ACE), enabling faster and more efficient processing of low-value shipments.

Benefits of Entry Type 86:

• Streamlined Compliance: Entry Type 86 simplifies the compliance process for shipments that might otherwise require more complex entry types, making it easier for importers to meet CBP requirements.

• Integration with E-commerce: Ideal for e-commerce businesses, Entry Type 86 facilitates the rapid clearance of small parcels, helping to ensure that goods reach customers quickly.

When to Use Section 321 and Entry Type 86

• Section 321 is best used for straightforward, low-value shipments where the total value is under $800, and no specific regulatory requirements apply to the goods.

• Entry Type 86 is ideal when importing low-value shipments that may be subject to additional regulations or when electronic submission through ACE offers a more efficient clearance process.

How to Ensure Compliance with Section 321 and Entry Type 86

To take full advantage of these streamlined entry options, importers should:

• Accurately Value Shipments: Ensure that the total value of the shipment does not exceed $800 to qualify for Section 321 or Entry Type 86.

• Maintain Proper Documentation: Even though these programs reduce paperwork, it’s essential to keep accurate records and ensure that all necessary information is provided to CBP.

• Understand Regulatory Requirements: For goods subject to additional regulations (e.g., FDA, EPA), make sure that all requirements are met before filing an Entry Type 86.

Conclusion

Section 321 and Entry Type 86 provide significant benefits for importers of low-value shipments, offering cost savings, faster clearance, and simplified compliance. These programs are particularly advantageous for e-commerce businesses looking to optimize their import processes and deliver goods to customers quickly.