For years, the Type 86 entry process has enabled low-value shipments to enter the United States with expedited clearance, fueling the growth of global ecommerce. It helped international sellers, particularly in Asia, ship directly to U.S. customers with speed and cost efficiency.

That model is now changing.

On April 2, 2025, a new Executive Order eliminated duty-free de minimis treatment for low-value imports from China and Hong Kong, effective May 2 at 12:01 a.m. ET. This change signals a significant shift for international ecommerce, especially for brands that have long relied on the $800 threshold to offer fast, affordable shipping to U.S. consumers without triggering duties and taxes. With Type 86 entries under pressure and no formal successor, brands are looking for solutions.

SEKO is delivering one. In partnership with CustomsCity, SEKO is introducing a flexible, compliance-first clearance model designed for the next generation of cross-border shipping.

Why Type 86 Is Being Phased Out

Originally introduced to simplify clearance for low-value ecommerce shipments, Type 86 allowed informal declarations and duty-free entry, helping fast-track global direct-to-consumer (D2C) and marketplace orders into the U.S.

But the model has come under intense scrutiny due to:

  • Undervaluation of goods to stay under the expedited clearance threshold

  • Misclassification of restricted products

  • Low data quality and traceability, especially with bulk aggregators

  • Security risks from parcels entering the U.S. with minimal inspection

As a result, U.S. Customs and Border Protection (CBP) and trade regulators are demanding stricter data standards, improved tracking, and more consistent compliance. The environment that once allowed Type 86 to flourish is changing, and ecommerce businesses must adapt.

The Urgent Need for a New Model

The end of duty-free de minimis privileges introduces serious complexity to cross border ecommerce. Brands now face:

  • Rising landed costs from duty exposure and compliance fees

  • Longer transit times due to increased inspections and manual customs processing

  • Limited scalable solutions that maintain speed, affordability and compliance

Traditional postal models lack data visibility and customs confidence. Express couriers offer control, but not cost efficiency. Sellers need a smarter, hybrid model—one that balances compliance, automation and affordability.

SEKO’s Hybrid Clearance Model – The “New Type 86”

To fill the gap, SEKO and CustomsCity are launching a comprehensive clearance and compliance solution built for the new ecommerce environment. This all-in-one model officially launching in May, aligning with the effective date of the Executive Order.

What the Solution Includes

  • Real-time landed cost calculator at checkout, enabling customers to see duties and taxes before purchase

  • Automated customs classification and documentation, powered by CustomsCity’s eManifest and Automated Commercial Environment (ACE)-compliant platform

  • Support for both Type 1 and Type 11 entries, providing flexible routing based on shipment size and risk

  • Predictive screening tools to flag undervalued or restricted items upstream

  • Integrated logistics and clearance, managed end-to-end by SEKO

Sellers can adopt the full solution or license just the duty calculation tech—depending on their operational needs.

Why SEKO’s “New Type 86” Works

This hybrid postal/parcel solution solves the most pressing challenges of the post–de minimis era:

1. Seamless Compliance

CBP-ready manifests and pre-filed entries reduce manual reviews and inspection delays. The system ensures proper classification, valuation and traceability.

2. Cost Efficiency at Scale

SEKO’s routing model keeps costs lower than express options while maintaining parcel-level visibility and transit predictability.

3. Customization and Flexibility

Brands and marketplaces can tailor the model to their needs—using SEKO for full-service logistics or simply adopting the duty calculation tech for checkout integration.

4. Customer Experience Protection

Consumers get a transparent view of duties and taxes at checkout, preventing surprise fees at delivery.

The SEKO + CustomsCity Partnership

SEKO is leading logistics. CustomsCity is powering the tech. Together, this partnership is redefining what ecommerce customs clearance can look like:

  • CustomsCity’s role: eManifest generation, ACE compliance and automated classification, duty calculation

  • SEKO’s role: International shipping, hub injection, clearance and post-entry support

The result is a synchronized, high-speed compliance engine that meets rising regulatory expectations without slowing down ecommerce delivery.

What Comes Next for Cross-Border Ecommerce

The de minimis rollback is just the beginning. Sellers should expect:

  • Wider geographic restrictions beyond China and Hong Kong

  • Tighter enforcement and penalty regimes for noncompliance

  • Demand for full shipment-level transparency

Rather than wait for future policy announcements, forward-thinking businesses should act now—investing in scalable, tech-driven customs solutions that can adapt to the market.

Why SEKO Is Leading the Way

SEKO isn’t waiting for a new standard, we’re defining it. With logistics expertise, global infrastructure and compliance-first tools, SEKO is helping ecommerce companies:

  • Adapt immediately to new de minimis rules

  • Avoid customs delays and cost surprises

  • Maintain competitive shipping timelines and delivery experiences

Whether you need a turnkey logistics partner or a standalone duty calculator to integrate at checkout, SEKO has the flexibility to fit your operation.

Stay Ahead with the “New Type 86”

The de minimis era is ending, but ecommerce doesn’t have to slow down. With SEKO’s hybrid model, you can keep delivering at scale—while staying compliant, transparent and cost-effective.

Our new solution launches in May. It’s designed to minimize disruption, reduce friction and help brands transition seamlessly into the next chapter of global trade.

Contact SEKO today to learn how our “new Type 86” solution can support your customs strategy, streamline your ecommerce shipping and protect your margins