Until recently, many Chinese sellers used ‘T86’ clearance — a fast, duty-free method for small packages under $800. Now that it’s canceled, businesses are scrambling for alternatives. Here are 3 new shipping strategies being tested, their risks, and how to stay compliant.
US Tariffs FAQ: What Are the Alternatives After Losing Duty-Free Shipping?
Post-T86 Shipping Options: What Sellers Are Testing
With the elimination of T86 clearance, Chinese sellers and logistics providers are testing new ways to ship goods to the US while minimizing costs and delays. Here are the top 3 alternatives currently in use—and their trade-offs.
Unlike the old T86 system (which allowed duty-free imports under $800), these methods require full customs declarations and fees
1. T11 Clearance (Sales Price Declaration)
- How it works: Declares the full retail price (higher duties than T01).
- Current trend: Some logistics firms still use “tax-free” workarounds (no $2.62 handling fee).
- Pros:
- If inspected, only problematic items are seized (rest ship normally).
- Cons:
- Slow processing (~20+ days).
- Risk of future crackdowns on loopholes.
2. T01 + Overseas Warehouse Relabeling
- How it works:
- Traditional clearance paired with warehouse relabeling in the US.
- Often uses neutral labels (changed upon arrival).
- Pros:
- Faster (~10 days).
- Fewer compliance issues if done correctly.
- Cons:
- Strict product restrictions (HS code limitations).
- Batch seizures: One violation can halt the entire shipment.
3. Transshipment via Third Countries
- How it works: Reroutes goods through Mexico, Malaysia, or the EU before US entry.
- Pros:
- Avoids direct China-US tariffs.
- Cons:
- Longer transit (extra 2–4 weeks).
- Higher costs (added freight + handling).
- Origin scrutiny: CBP may still flag Chinese-made goods.
Which Option Is Best?
| Method | Speed | Cost | Risk | Best For |
|---|---|---|---|---|
| T11 | Slow | Medium | Medium | Low-value, non-urgent goods |
| T01 + Relabel | Fast | High | High | Compliant, high-margin items |
| Transshipment | Very Slow | Very High | Low-Medium | Tariff-sensitive products |
Key Takeaways for Sellers
✔ Test multiple channels—no single solution works for all products.
✔ Factor in delays—T11/transshipment add 2–4 weeks.
✔ Monitor CBP updates—rules are evolving rapidly.
Need Help? Consult a customs broker to design a compliant strategy.
Important: Trade regulations change frequently. This article is for informational purposes only and does not constitute legal advice. We strongly advise all businesses to comply fully with international trade laws and CBP regulations. Always consult a licensed customs broker before implementing any shipping strategy. Unauthorized circumvention of tariffs may result in severe penalties, including fines and shipment seizures.
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