By Jennifer Chang    Photo：CANVA

T86 clearance, or Entry Type 86 , is a new informal entry method introduced by the U.S. Customs and Border Protection (CBP) on September 28, 2019, primarily for low-value e-commerce goods.

Why is Entry Type 86 so popular? With the rapid development of cross-border e-commerce, more and more goods are entering the US market in the form of small packages. The introduction of the T86 clearance has provided a fast-track clearance channel for these small packages, greatly promoting the development of cross-border e-commerce.

The features and advantages of T86 Clearance include fast processing and simplified procedures. Goods that meet the T86 clearance criteria can usually complete the customs process within 48 hours, significantly shortening the clearance time. Its declaration process is relatively simple, requiring fewer documents, which reduces administrative costs for businesses. It is applicable to many cross-border e-commerce platforms, providing convenience for these platforms to sell their products to the U.S. Under the T86 Clearance, the value of goods that can be imported duty-free is raised to a retail total of $800 per person per day (without the need for detailed, formal customs declarations). Previously, the duty-free import threshold was $200. The types of goods mainly include small e-commerce packages, such as clothing, electronics, and other items.

Recently, U.S. Customs has tightened the T86 Clearance policy, causing concern among many businesses that rely on low-cost imports. The reasons behind this policy adjustment are complex, but the main triggers can be summarized as follows:

1. Abuse of the T86 Clearance Policy: Many sellers, in order to save on tariffs, split high-value goods into multiple packages, declaring each package as having a value below $800, thereby evading the tariffs that should have been paid.
2. Inaccurate Product Descriptions: Some sellers, in order to expedite the customs process, provide false or inaccurate descriptions of goods. This not only violates customs regulations but also increases the difficulty of enforcement by customs authorities.
3. Security Risks: Some packages cleared through T86 contain prohibited or dangerous items, posing a threat to U.S. national security.
4. Policy Loopholes: The T86 Clearance policy itself has certain loopholes that can be easily exploited by wrongdoers.

In response to the above issues, U.S. Customs has had to strengthen its oversight of the T86 Customs Clearance process. It is expected that U.S. Customs will further tighten the T86 clearance policy, raise audit standards, and increase the frequency of spot checks. Additionally, customs will enhance its supervision of importers and logistics companies, imposing severe penalties for violations. Customs will also establish a more comprehensive risk management system to focus on the regulation of high-risk goods. Although the adjustment of the T86 Clearance policy presents new challenges for low-cost goods entering the U.S., it also provides new opportunities for the healthy development of the market. Sellers who adapt to policy changes and improve their competitiveness will be able to secure a foothold in the intense market competition.

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