Article Brief:
- Type 86 shipments are gone, so retailers must plan for higher customs clearance costs, customs fees, and brokerage charges.
- Duties now apply to low-value goods, including goods valued under $800 that were once entered duty-free. And charges may include merchandise processing fee, harbor maintenance fee, and other fees tied to import duties.
- Clean product data reduces delays in customs processes and lowers charges tied to formal entry.
- Using platforms that help sellers ensure compliance keeps imports predictable and cost-effective across supply chains.
They say all good things must come to an end. Cross-border e-commerce platforms and online marketplaces spent years believing that type 86 shipments would always give them a low-cost path to customers across the United States. Well, it has all come to an end as Customs and Border Protection shut the door on entry type 86. Clearance now depends on standard entry rules, which bring higher customs clearance costs, new duties, and more pressure on data accuracy.
As type 86 disappears, the cost to ship low-value shipments is rising in every direction. In this article, we explore how online retailers can understand the new cost picture, manage the jump in customs clearance fees, and use tech solutions such as KlearNow.AI that can help reduce the hit on profit margins.
What Type 86 Used to Offer — and Why It Disappeared
Entry type 86 protection for shipments was removed due to four key concerns: undervaluation, restricted products entering under false descriptions, large-scale misclassification, and retailers pushing too many volumes, which stressed the border protection system. To illustrate the scale, the CBP reported tens of millions of de minimis entries per month, many with vague descriptions or declared values that did not match the product. So, the pressure built, and the program collapsed.
Type 86 Is Gone, and the Cost Picture Of International Shipments Has Changed
Entry type 86 was critical for shippers because it removed friction for low-value shipments and helped marketplaces keep shipping costs low for imported products. Now that it has ended, every low-value import must follow a standard entry path, which also translates into increased customs clearance costs for retailers that built their logistics and supply chain models around speed and low duty exposure. Bottom line is that low-value shipments no longer enjoy duty-free movement.
What Happens Now: Every Shipment Must Follow Standard Entry Rules
The removal of type 86 shipments forces all retailers to follow the same customs processes used for higher-value goods, meaning new duties, new fees, and far more attention to product classification. Here is how it plays out:
1. Every Item Requires a Formal or Informal Entry
All low-value goods must now move through a formal or informal entry, depending on the shipment value and tariff category. Each shipment must include correct HS codes, clean descriptions, and a declared value that CBP can verify. If your shipments have missing or incorrect data, it triggers correction fees, storage charges, or delays. Retailers can no longer rely on fast processing for low-value imports, and accuracy now drives cost reduction.
2. Duty Exposure for All Low Value Imports
Every shipment now faces import duties, although duty exposure depends on product classification, origin, trade agreements, and tariff schedules. Certain goods may incur countervailing or anti-dumping duties, which make shipping them more expensive. For example, a $12 accessory is subject to zero duty under entry type 86. However, under standard entry, that same item may carry tariffs that reduce profit.
3. Higher Processing Pressure for Carriers and Brokers
Carriers must now review customs data flow far more carefully, and customs brokers must also process a larger number of entries, which increases their workload and creates new brokerage charges and delays. You should expect new charges for data correction and manual review, as well as compliance checks tied to regulatory requirements.
Cost Breakdown: What Should Retailers Expect to Pay Now?
Below is a breakdown of the charges that now impact the cost of shipping low-value items:
1. Broker Fees for Standard Entry
Customs brokers now process each shipment through a full customs clearance process. Broker fees vary by entry type and product complexity. Simple entries may sit at the low end, while multi-line entries or goods with sensitive HS codes may cost more. However, volume matters. If you are moving large quantities, you may be able to negotiate lower fees, but low-volume shippers will incur higher per-shipment costs.
2. Duty and Tax Charges
Although duties apply to every shipment, the rates depend on HS codes, country of origin, and trade agreements. And certain tariffs may apply to goods from specific regions. For instance, a retailer importing a $15 beauty item now pays import duties, and the declared value must match invoices to avoid correction fees. Taxes also add pressure because you and your team must double-check product classification to prevent unexpected charges tied to anti-dumping or countervailing duties.
3. Carrier Fees and Data Correction Charges
Charges linked to errors in declared value, product details, or origin records appear more often when your data is vague or inconsistent. And carriers would not hesitate to charge you for this. Other fees may appear when carriers must correct documents or review goods that carry risk signals during the clearance process.
4. Exam Fees and Delays
Shipments with vague descriptions or inconsistent values may be subject to physical inspection. But apart from the delay, these physical inspections or exams also attract fees. There is also a storage cost charged to the shipper. Delays add indirect costs because slow clearance frustrates customers and increases shipping costs.
How KlearNow Helps Reduce the New Cost Burden
Given the current realities, KlearNow.AI can be critical to helping you ensure a cheaper, disruption-free shipping operation. But for that to happen, our first step is to ensure you have accurate data for accurate entries, so your shipments can move through customs clearance with fewer fees and delays. KlearCustoms provides you with information, such as correct product classification, so you don’t incur correction fees.
The platform also reduces exam exposure by validating shipment data before it reaches the CBP. This way, your customs clearance fees are lower because there are no errors, and it also reduces the risk of extra charges linked to data issues. The more accurate the data, the lower the customs clearance costs.
Success now depends on clean data, correct product classification, and strong partnerships with platforms like KlearNow that help sellers lower customs clearance costs.
Frequently Asked Questions
Why did customs stop treating low-value imports as de minimis shipments?
Customs ended the old approach because low-value imports grew too fast for older systems. Officers found that many imported products contained incorrect data, which strained the automated commercial environment and slowed customs clearance for everyone. There were also concerns about certain goods entering duty-free even when tariffs were in place.
Which charges now apply to low value goods that once moved through type 86 shipments?
Retailers must now expect multiple charges tied to formal entry. These include the merchandise processing fee, harbor maintenance fee for certain shipments, customs duty, import duties linked to product classification, and customs charges tied to anti-dumping or countervailing duties when certain goods are subject to trade pressure.
How does the removal of type 86 affect online retailers that depend on cost-effective imports?
Retailers relying on cost-effective imports must adjust pricing because duty-free clearance no longer applies. This affects tariffs under trade agreements, additional fees for certain shipments, and customs clearance fees based on the shipment value. The change touches many parts of commerce: transportation, payment, online sales, and supply chains.
How can sellers manage customs clearance costs for imported products now that type 86 is gone?
Sellers can reduce costs by improving product classification, ensuring HS codes match imported products, and keeping invoices free of errors tied to declared value. Retailers also need strong controls for tariffs, duty, and brokerage charges, and customs brokerage records.
