CSMS 62520662·Operational·October 4, 2024·View on csms.cbp.gov ↗

Clarifications Pertaining to the ACE Entry Type 86 Test: Chapter 98 and Customer Returns

Plain-English explanation

CSMS 62520662 is a U.S. Customs and Border Protection (CBP) Cargo Systems Messaging Service bulletin (operational), published on October 4, 2024. It carries the official CBP guidance brokers and importers must follow for the topic — "Clarifications Pertaining to the ACE Entry Type 86 Test: Chapter 98 and Customer Returns". CSMS messages are the operational layer between Commerce determinations and at-the-border collections: when Commerce publishes a new rate, scope ruling, or instruction, CBP turns it into a CSMS that ACE/ACS systems and brokers act on.

Message body

Full text as published by U.S. Customs and Border Protection

CSMS # 62520662 - Clarifications Pertaining to the ACE Entry Type 86 Test: Chapter 98 and Customer Returns U.S. Customs and Border Protection sent this bulletin at 10/04/2024 09:20 AM EDT Cargo Systems Messaging Service CSMS # 62520662 - Clarifications Pertaining to the ACE Entry Type 86 Test: Chapter 98 and Customer Returns The ACE Entry Type 86 Test was republished in the Federal Register with modifications on January 16, 2024 (89 Fed. Reg. 2630). This message clarifies whether merchandise classifiable under Chapter 98 of the Harmonized Tariff Schedule of the United States (HTSUS) and customer returns are eligible for entry under the ACE Entry Type 86 Test. Chapter 98 : All merchandise classifiable under a Chapter 98 HTSUS subheading must also be classified under an appropriate Chapter 1-97 HTSUS subheading. The filing of an Entry Type 86 accords eligible merchandise a duty exemption pursuant to 19 U.S.C.§ 1321(a)(2)(C), such that the duty-free provisions of Chapter 98 are not applicable . Consequently, merchandise classifiable under a Chapter 98 HTSUS subheading may be accorded duty-free treatment under Chapter 98 utilizing a distinct and appropriate entry type. Merchandise claiming a duty exemption under 19 U.S.C.§ 1321(a)(2)(C) must report the Chapter 1-97 HTSUS subheading on the Entry Type 86 instead. Customer Returns : Filing an Entry Type 86 is permitted. Customer returns under the Entry Type 86 are subject to the same $ 800 daily threshold by one person on one day and must be classified under the appropriate HTSUS Chapter 1-97. The aggregate fair retail value in the country of shipment for such merchandise is included within the $ 800 limit applicable to the consignee named on the type 86 entry. Eligibility for entry under the ACE Entry Type 86 Test for such merchandise is subject to all other requirements specified in the test and CBP Regulations. Filers should assess whether filing under the Entry Type 86 or filing a formal or informal entry under Chapter 98 is more advantageous when processing returns, as both are permissible For more information on this and other frequently asked questions, please visit https://www.cbp.gov/trade/basic-import-export/e-commerce/faqs . For general questions, or concerns, please email ecommerce@cbp.dhs.gov . Update your subscriptions, modify your password or e-mail address, or stop subscriptions at any time on your Subscriber Preferences Page . You will need to use your e-mail address to log in. If you have questions or problems with the subscription service, please contact subscriberhelp.govdelivery.com . This service is provided to you at no charge by U.S. Customs and Border Protection . Privacy Policy | GovDelivery is providing this information on behalf of U.S. Department of Homeland Security, and may not use the information for any other purposes. Powered by Privacy Policy | Cookie Statement | Help

Frequently asked questions

What is CSMS 62520662?

CSMS 62520662 is a U.S. Customs and Border Protection (CBP) Cargo Systems Messaging Service bulletin titled "Clarifications Pertaining to the ACE Entry Type 86 Test: Chapter 98 and Customer Returns". CSMS bulletins are the operational instructions CBP issues to brokers, importers, and ACE filers covering rate changes, system updates, scope guidance, and other day-to-day customs-operations changes.

When was CSMS 62520662 published?

CBP published CSMS 62520662 on October 4, 2024. The bulletin's instructions are typically operative as of the publication date unless the body specifies a different effective date.

Is the CBP CSMS the legally binding instruction?

Yes — for at-the-border filing and entry collection. CSMS messages translate Commerce's Federal Register determinations into operational CBP instructions that ACE/ACS systems and brokers execute. The Federal Register notice is the underlying legal authority; the CSMS is the operational implementation. Both should be read together when reconciling a rate or scope change.

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