The United States will implement new measures against small packages on platforms like Temu, SHEIN, and AliExpress. Congress is being urged to pass legislation this year to reform the minimum exemption policy comprehensively. Currently, there have been no updates on this policy. However, another policy set to be enforced will significantly impact low-value goods.

AMZ123 learned that the U.S. Customs and Border Protection (CBP) announced that starting from October 3, 2024, all Entry Type 86 cargo must be declared before arrival at the first port of entry. This measure aims to ensure accurate data and avoid clearance delays.

According to the notice, the new policy strengthens supervision of low-value goods and includes the following points:

1. All goods bound for the United States must submit detailed information in advance, including the shipper and consignee.

2. Declaration information will undergo stricter reviews. Sellers must ensure that key data such as product name, quantity, and value are accurate.

3. Processing fees will be added. Each batch of goods entering through Entry Type 86 customs clearance procedures will incur a fee of $2.

4. A fine system will be increased. If there is a violation of declaration behavior for small packages under $5, the maximum penalty will be a fine of $5,000.

5. Processing time will be shortened. The voluntary abandonment period for small packages has been reduced to 15 days. Goods not processed within this timeframe will be destroyed.

Key points: The customs clearance time for low-value goods will increase, along with costs and force majeure factors.

Entry Type 86, also known as the Small Exemption Policy, is a customs declaration type for imported goods into the United States. According to customs clearance regulations, low-value goods (not exceeding $800) can usually clear quickly and are exempt from tariffs and taxes.

Although U.S. Customs claims this policy aims to maintain trade fairness and tax order, many sellers believe it mainly targets the increasing number of "small exemption" packages from China each year.

Reports indicate that over the past decade, the value of goods imported into the United States through the "Small Exemption Policy" has doubled yearly, reaching $23.4 billion in 2023. The number of packages has surged from 140 million per year to over 1 billion.

This increase is partly due to Amazon FBM sellers shifting to small packages because of tariff policies and the rapid rise of Chinese cross-border e-commerce platforms offering "extreme cost-effectiveness." According to U.S. statistics, the value of "small exemption" goods from China has reached about $4.6 billion, affecting e-commerce businesses in the United States.

In this context, it is not surprising that the United States has intensified its crackdown on the "small exemption" import policy.

However, it is easy to predict that after implementing this policy, significant challenges will arise for cross-border e-commerce sellers and platforms relying on the "small exemption" policy. This could even impact their cost structures.

For these types of sellers, preparing follow-up response plans is essential. They should ensure compliance and accuracy in declaration information to avoid customs clearance issues. Additionally, planning the customs clearance process for goods in advance and adjusting logistics plans promptly can help avoid sales disruptions.

In conclusion, Entry Type 86 represents a critical aspect of U.S. customs regulations affecting low-value imports. Sellers must adapt quickly to these changes to ensure compliance and maintain their market presence.

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