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US e-commerce boom leads to Entry Type 86 delays

  • Jun 1, 2020 | Richard Asquith

The US Customs and Border Protection (CBP) agency is warning importers that the Customs Entry Type 86 filers may experience delays due to the rapid growth of e-commerce during the COVID-crisis.

The Entry Type 86 was introduced last year to enable import tax-free imports of packages not exceeding $800. Previously the limit was $200.

The CBP is warning of delays in processing Type 86 shipments of several hours. They gave the following practical guidance:

·      Only file the Type 86 entries when all related bills are submitted too

·      Restrict entries to 20,000 to 30,000 per hour

·      Ensure SE update transactions are up to date

·      Hold ACE Cargo Manifest queries until the entry processing is completed.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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