Goodbye Type 86: What Importers Must Know in 2025
The United States ended its de minimis exemption on August 29, 2025, removing duty free treatment for shipments under 800 dollars. This change retired Type 86 entries and made Type 11 Informal Entry the new standard for small imports. Importers must now pay duties and taxes on all shipments and provide accurate customs documentation. Businesses should update pricing, compliance processes, and logistics to align with the new U.S. import rules.
Importers must now use Type 11 Informal Entry or formal entry procedures for all shipments.
Every import requires duties, taxes, and complete documentation.
This new environment changes how eCommerce, freight, and small businesses trade with the U.S.
1. Background: What Was Type 86
Type 86 was created under Section 321 of the Tariff Act to simplify low value imports.
It allowed goods worth 800 US dollars or less to enter the United States without paying duties or taxes.
The system was widely used for online retail and cross border eCommerce.
Before August 2025, Type 86 offered:
- Duty free entry for shipments below 800 US dollars
- Simplified electronic filing through CBP’s Automated Commercial Environment (ACE)
- Fast customs clearance and minimal paperwork
- High volume use by global sellers and logistics providers
In 2024, the U.S. Customs and Border Protection (CBP) began tightening data accuracy rules for Type 86.
By mid 2025, compliance risks and data errors had led to stricter enforcement.
When the de minimis exemption ended in August 2025, Type 86 was officially retired.
2. What Is Type 11 (Informal Entry)
Type 11, also called Informal Entry, is now the main option for small shipments entering the United States.
It applies to goods valued up to 2,500 US dollars and does not usually require a customs bond.
Key details of Type 11:
- Value limit: up to 2,500 US dollars
- Duties and taxes: applied according to the Harmonized Tariff Schedule (HTS)
- Bond: not normally required
- Documents: commercial invoice, packing list, and entry summary if requested
- Processing: handled electronically through ACE
- Restrictions: not for prohibited or quota controlled goods
Type 11 is now the standard method for importers who previously used Type 86 for low value shipments.
3. Type 11 vs Type 86 Comparison
Feature | Type 11 (Informal Entry) | Type 86 (De Minimis Entry) |
|---|---|---|
Value limit | Up to 2,500 USD | Up to 800 USD |
Duties and taxes | Applied based on HTS code | Previously duty free |
Filing method | Flexible, electronic | Required pre arrival filing |
Bond requirement | Not usually required | Not required |
Documentation | Standard invoice and summary | Required full data set |
Processing time | Moderate | Previously faster |
Eligibility | Most non restricted goods | Only low value, non regulated goods |
Status in 2025 | Active | Discontinued |
4. Business Impact of the De Minimis Change
According to DHL Express data from September 2025, about 1.4 billion shipments entered the United States duty free under the previous de minimis rule.
Now, each of those shipments must clear customs with full duty assessment.
Main business effects:
- Increased costs – duties and taxes now apply to all shipments.
- More documentation – importers must ensure accuracy in HTS codes and declared values.
- Possible shipping delays – additional customs checks increase processing time.
- Customer experience changes – surprise fees can increase cart abandonment in eCommerce.
- Higher reliance on brokers – many importers will need licensed customs brokers for compliance.
5. How Importers Can Adapt
To stay competitive, importers should focus on compliance, pricing transparency, and efficient logistics.
Recommended steps:
- Ensure invoice accuracy
Include full product descriptions, HTS codes, and declared values. - Recalculate landed costs
Adjust retail pricing to include new duties and brokerage fees. - Offer Delivered Duty Paid (DDP)
Pay duties in advance to give customers all inclusive pricing. - Use U.S. fulfillment centers
Store inventory in the United States to avoid repeated import processing. - Partner with customs brokers
Licensed brokers can manage Type 11 filings and reduce clearance delays.
These actions help maintain smooth trade operations and customer trust.
6. Takeaways
- The de minimis exemption ended on August 29, 2025.
- Type 86 is no longer valid for duty free entry.
- Type 11 now serves as the main process for small imports up to 2,500 US dollars.
- Every shipment requires duties, taxes, and full compliance with customs rules.
- Businesses must adapt pricing, documentation, and logistics to meet new standards.
The end of de minimis presents challenges but also opportunities.
Companies that adapt quickly can build stronger, more transparent import operations for long term success.