Cross-border e-commerce sellers preparing for the upcoming U.S. sales season face new uncertainty as rumors circulate about a potential 90-day suspension of SKEO Logistics' T86 customs clearance service, effective May 27. This development has drawn immediate attention from sellers on fully managed platforms like Temu and Shein, who are closely monitoring the situation and assessing potential impacts.
Tightening "De Minimis" Rules: Policy Shift Explained
The speculated changes reflect growing U.S. scrutiny of the "de minimis" import policy. Last month, the House Ways and Means Committee approved the "Ending China's De Minimis Abuse Act," which seeks to strengthen oversight of Chinese goods entering under the provision by raising exemption thresholds and increasing penalties for violations.
This legislative action responds to an explosion of de minimis shipments, particularly from Temu (owned by PDD Holdings) and fast-fashion retailer Shein. Representative Mike Gallagher, chair of the House Select Committee on China, noted that 485 million de minimis packages entered the U.S. this year alone, with Temu and Shein accounting for one-third of the total. The influx has raised government concerns about tax loopholes, intellectual property violations, and security risks.
The Double-Edged Sword of De Minimis
Common in global trade, de minimis policies aim to streamline low-value imports by reducing administrative burdens. Thresholds vary internationally—Australia permits $1,000, Canada $20, while Europe averages $190. The U.S. provision originates from Section 321 of the 1930 Tariff Act, exempting sub-$800 retail goods from duties with simplified clearance.
However, e-commerce growth has exposed systemic vulnerabilities. Some bad actors exploit the policy through undervaluation, duty evasion, or smuggling contraband, undermining tax revenue and domestic industries.
T86 Clearance: Efficiency Versus Enforcement
Introduced in 2019 by U.S. Customs and Border Protection (CBP), Type 86 (T86) clearance operates under Section 321 as an informal entry method for sub-$800 shipments. Its streamlined paperwork and rapid processing have made it popular among cross-border sellers.
The T86 process requires electronic submission via CBP's Automated Commercial Environment (ACE) system, including:
- Air waybill or bill of lading numbers
- Consignee details and country of origin
- Fair retail value and intended port of entry
- Quantity and shipper information
- 10-digit HS code (typically waived for low-value imports)
- Importer of Record number when applicable
Unlike traditional clearance, T86 allows documentation submission within 15 days of arrival, with CBP usually granting prompt release. However, mass shipments from Temu and Shein have exacerbated issues like misclassification, undervaluation, and IP infringement, slowing inspections. CBP now demands complete filings before or upon arrival, including accurate product descriptions and HS codes.
Challenges for Managed Marketplace Sellers
A T86 suspension would particularly affect sellers on fully managed platforms like Temu and Shein, where the platforms handle logistics and clearance while sellers supply inventory. Disruptions could cause delays, higher costs, and sales declines.
Moreover, stricter de minimis enforcement imposes greater compliance demands on platforms—requiring enhanced product vetting for legal and safety standards, plus optimized logistics to maintain efficiency and cost controls.
Navigating the New Landscape
Sellers should consider these proactive measures:
- Monitor policy updates: Track CBP announcements on de minimis and T86 adjustments.
- Prioritize compliance: Ensure merchandise meets all U.S. legal and safety requirements.
- Optimize logistics: Partner with reliable providers to enhance clearance efficiency.
- Diversify markets: Reduce reliance on the U.S. by expanding to other regions.
- Engage platforms: Seek clarity on contingency plans and support measures.
While platforms haven't officially addressed the T86 rumors, compliance remains foundational for sustainable cross-border business. Market volatility notwithstanding, adaptable sellers who strengthen their competitive edge will be best positioned to thrive.