# How do Section 321 and Type 86 entries work for DTC brands? | ClearBorder

Source: https://clearborderhq.com/blog/2026-10-19-section-321-type-86-entries-dtc.html

Cross-border operations guide · October 19, 2026


Section 321 lets qualifying low value shipments enter the US duty free up to the de minimis threshold, and Entry Type 86 gives brokers an electronic way to file those shipments with partner agency data included. The speed brands love depends on clean data.

## Section 321 is a value rule with conditions

Section 321 of the Tariff Act allows an importer to bring in merchandise valued at or below the de minimis threshold free of duty and tax, provided the shipment qualifies: one shipment per person per day, addressed to one ultimate consignee, and not split from a larger shipment to duck under the line.

The conditions are where brands slip. A warehouse that breaks one commercial order into several small parcels to the same customer on the same day is not using de minimis. It is manufacturing eligibility, and customs treats the pattern accordingly when it surfaces.

## Type 86 turned a paper shortcut into a data filing

Entry Type 86 is the voluntary electronic entry in the Automated Commercial Environment for Section 321 shipments. It lets a broker file low value entries with the data partner government agencies need, such as food, drug, and product safety information, instead of relying on manifest data alone.

That data is the point. Agencies screening for unsafe, counterfeit, or forced labor goods cannot work from a vague manifest description. Type 86 filings with precise descriptions, correct tariff numbers, and consignee detail clear faster because the screening questions are already answered.

## Why filing quality decides clearance speed

Vague descriptions are the most common self inflicted wound: apparel, parts, or gifts tell a screening system nothing. Specific descriptions, accurate values, and consistent shipper and consignee data let automated systems release the shipment. Sloppy data invites exams that erase the time de minimis was supposed to save.

Value discipline matters equally. Undervaluing to stay under the threshold is misdeclaration, and repeated low value filings just under the line draw attention. Brands should be able to show invoices and payment records that match declared values without reconstruction.

## The broker relationship behind the fast lane

Most DTC brands file Type 86 through a customs broker or a platform that acts with one. The contract should be explicit about who is importer of record, who carries data accuracy, and how holds and agency refusals are communicated and resolved hour by hour, not day by day.

Ask how descriptions are generated. A broker flow that auto shortens product titles into generic phrases is quietly creating your exam rate. Good partners map your catalog to compliant descriptions and tariff numbers once, then reuse that mapping on every filing.

## Policy risk brands should plan around

De minimis rules are under constant political pressure, with proposals to lower thresholds, exclude certain countries or product categories, and demand more data per shipment. A brand whose margin only works inside the current fast lane has a policy dependency, not just a logistics setup.

The practical hedge is competence: clean Type 86 data, correct classification, and records that would survive a shift to formal entry. Brands with that discipline adapt to rule changes as a cost change. Brands without it face a compliance rebuild under deadline.

Keep reading: [What does denied party screening check before a DTC brand ships abroad?](https://clearborderhq.com/blog/2026-10-19-denied-party-screening-dtc.md), [How should a DTC brand choose and brief a customs broker?](https://clearborderhq.com/blog/2026-10-19-choose-customs-broker-dtc.md), and [How do rules of origin decide the duty rate on cross border DTC goods?](https://clearborderhq.com/blog/2026-10-17-rules-of-origin-duty-rates-dtc.md) cover the nearby cases in this series.

## Frequently asked questions

## What is Section 321?

The US de minimis provision that lets qualifying merchandise at or below the threshold value enter duty and tax free, limited to one shipment per person per day and not split from a larger shipment to gain eligibility.

## What is Entry Type 86?

A voluntary electronic entry in ACE for Section 321 shipments. It lets brokers file low value entries with partner agency data included, so screening for safety and other requirements happens from real data instead of manifest summaries.

## Why do low value shipments still get held?

Usually data quality: vague product descriptions, values that do not match records, missing agency information, or patterns that look like split shipments. The fast lane is fast for shipments whose data answers screening questions up front.

## How should a DTC brand prepare for de minimis rule changes?

Keep classification, descriptions, and value records at formal entry standard even while filing Type 86. Then a threshold or eligibility change is a cost and process adjustment, not a compliance emergency.