K&S Logistics Important Update

T86 Removal & New Tariff Policy Impact on Shipments

T86 Removal & New Tariff Policy Impact on Shipments

T86 Removal & New Tariff Policy Impact on Shipments

Feb 4, 2025

|

4

min read

new-tariff-policy-impact
new-tariff-policy-impact

Tariff Summary

Due to the removal of the Entry Type 86 (T86) program on February 4, 2025, which previously allowed shipments under $800 to be duty-free, tariff tiers now apply to small packages as well. On top of the new 10% tariff increase, the previous tariff tiers have also been reinstated due to the T86 removal. This means the current tariff policy is the old tariff plus an additional 10%.

Updated Tariff Tiers

  • General goods: Approximately 25% tariff

  • Textiles: Approximately 35% tariff

  • Final tariff rates depend on the product category and will be quoted accordingly.

How to Reduce Costs Under the New Tariff Policy

To comply with the new tariff situation and minimize costs, here are our suggestions:

Lower Declared Value – Declare the customs value as low as possible to reduce tax burdens.
Avoid Declaring Retail Value – Instead of declaring the full retail value of each package, declare a lower value.

Example: If a package’s retail value is $100, declaring it as $10 will significantly reduce taxes. If the tariff is 30%, you would only pay $3 instead of $30 in duties.

Potential Risks

⚠️ Customs Inspection – If customs suspects the specific package value is under-declared, they may reassess the value and charge additional taxes accordingly.

⚠️ Liability Disclaimer – Our company will not be responsible if customs applies additional taxes based on their valuation. However, we will be fully supportive in resolving the matter and assisting you in any way possible to navigate the situation.


Best Regards,

K&S Logistics Team