by Ariful | Sep 23, 2026 | EU VAT Updates
TITLE: EU Customs Reform, the €2 Handling Fee and HMRC VAT Assist: What Cross-Border Sellers Must Track
Deadlines and changes to track
- 1 October 2026: Temporary 0% VAT for qualifying domestic electricity supplies in Great Britain begins. Northern Ireland remains at 5%.
- 1 November 2026: The EU-wide €2 Union handling fee is expected to apply to eligible distance-sale imports, subject to the delegated act becoming final.
- 30 December 2026: EU Member States must transpose the first phase of ViDA reforms.
- 31 December 2026: Transitional UK VAT group refund claims for VAT incurred between 1 July 2025 and 30 June 2026 are due.
- 1 January 2027: First-phase ViDA measures apply. Germany’s B2B e-invoicing requirement begins for issuers with prior-year turnover above €800,000.
- Around April 2027: HMRC expects to introduce VAT Assist through compatible Making Tax Digital software.
- 21 September 2027: The new EU customs framework generally applies, including importer-for-distance-sales obligations and the systematic non-compliance penalty regime.
- 1 July 2028: The EU Customs Data Hub becomes usable for importers for distance sales and IOSS users. The VAT Import Special Arrangement is also scheduled to expire.
- 1 March 2034: The EU Customs Data Hub becomes mandatory for all economic operators.
Cross-border ecommerce compliance is moving towards real-time data, platform accountability and tighter customs controls. This week, the EU’s new Union Customs Code has entered into force, a €2 handling fee is moving closer to implementation, and HMRC has published details of VAT Assist.
Here is what you need to track and how to prepare your business.
1. Prepare now for the new EU customs accountability model
Regulation (EU) 2026/2108 was published on 19 September 2026 and entered into force on 20 September 2026. It establishes the new Union Customs Code, creates the European Union Customs Authority in Lille, France, and repeals Regulation (EU) No 952/2013.
The European Commission describes this as the most comprehensive reform of the EU customs framework since 1968. Its goal is a data-led customs system supported by the EU Customs Data Hub.
For online sellers, the most important change is the new concept of the importer for distance sales. This may be:
- The person supplying the goods.
- The online marketplace or platform facilitating the sale.
The importer for distance sales must provide customs information before release, pay customs duties and other charges, retain compliance records, and ensure goods meet relevant product safety and environmental requirements.
You should map this responsibility now. Review marketplace agreements, customs broker arrangements, IOSS registrations, product data and delivery terms. Doing so will help you avoid uncertainty when the general rules apply from 21 September 2027.
2. Model the €2 handling fee separately from VAT and customs duty
Article 20(2) of the new Union Customs Code introduces a permanent, non-refundable Union handling fee for goods sold through distance sales and imported into the EU.
The European Commission has adopted a delegated act setting the fee at €2 per product category. It is expected to be levied from 1 November 2026, provided neither the European Parliament nor the Council objects during the review period.
The fee is expected to apply regardless of consignment value, including consignments above €150. The importer for distance sales is responsible for paying it at least monthly.
Keep the following charges separate in your systems:
- The €2 Union handling fee.
- The temporary €3 customs duty on qualifying low-value consignments, already in effect from 1 July 2026.
- Import VAT.
- Standard customs duty where applicable.
The Commission considers the handling fee compensation for a public authority service. Therefore, it is outside the scope of VAT, is not a customs duty, and does not form part of the import VAT taxable amount.
The €3 duty also requires careful treatment. It is not included in the taxable amount reported under IOSS because it becomes due when the customs declaration is accepted, rather than when the customer purchases the goods.
Update your pricing, margin and accounting rules before the fee becomes operational. This will prevent customs charges from being incorrectly treated as VAT or product revenue.
3. Protect your business from systematic non-compliance penalties
Article 276 introduces a specific penalty regime for systematic non-compliance in distance sales.
A first systematic infringement may result in a charge of between 1% and 4% of the total value of goods imported into the EU during the preceding 12 months. It may also lead to suspension, revocation or annulment of AEO or Trust & Check status.
Further infringements within the specified six-month periods may increase the charge to between 3% and 6%. Authorities may also restrict access to the operator’s online interface.
The consequences extend beyond a financial penalty. The operator may be classified as a high-risk economic operator in the EU Customs Data Hub. Under Article 77(5), customs may have reason to believe that goods notified by the operator do not comply for at least six months. This creates a risk of release being suspended across an entire import flow.
Maintain daily controls over:
- Product descriptions and tariff classifications.
- Customs values and product identifiers.
- IOSS and marketplace data.
- Importer and indirect representative details.
- Product safety and environmental documentation.
- Reconciliations between orders, shipments and customs declarations.
4. Build towards Trust & Check status early
Trust & Check Trader status is a higher tier of trusted-trader recognition built on the existing AEO framework.
Applicants will need a clean compliance record, control over their supply chain, financial solvency, professional standards and an electronic system that gives customs access to real-time or near-real-time information.
Importers for distance sales must also have been registered for and made appropriate use of IOSS for at least two years before applying.
That makes early preparation essential. Potential benefits include:
- Self-release of goods into free circulation.
- Periodic duty payment for periods of up to 31 calendar days.
- Self-calculation of customs debt.
- Access to the customs warehouse for distance sales, where eligibility conditions are met.
Applications may be made from 21 September 2027, with facilitations applying from 1 July 2028. If IOSS could support your future operating model, assess registration and usage requirements now rather than waiting for the Data Hub to launch.
5. Strengthen UK VAT controls before HMRC VAT Assist arrives
HMRC published its VAT Assist transparency record on 9 September 2026. The service is in pre-deployment and is expected to launch around April 2027 through compatible Making Tax Digital software.
VAT Assist will compare draft VAT return figures with information HMRC already holds. It will then provide digital nudges where its rule-based checks identify potential errors.
It will not:
- Review underlying invoices.
- Analyse every transaction.
- Prefill your VAT return.
- Operate as continuous transaction control.
- Prevent you from submitting a return.
by Ariful | Sep 23, 2026 | US Updates
TITLE: IRS Draft 2026 Form 1040 Adds a Citizenship and Work Authorisation Question: What It Means for International Founders and SMEs
What the draft Form 1040 question asks
The proposed question appears in the Other Information section of draft Form 1040. It sits alongside the existing digital asset question.
It asks:
“At the time you file your return, are you, and your spouse if filing jointly, a U.S. citizen, U.S. national, or an alien lawfully authorized to work in the U.S.?”
The form provides separate boxes for:
- You: Yes or No
- Spouse: Yes or No
This wording focuses on your status at the time you file the return. It is not simply asking whether you earned income in the United States or whether you own a U.S. company.
The question also does not create a new tax rate. It does not, by itself, determine whether you are a U.S. tax resident. Those decisions still depend on the applicable tax rules, filing status, residency tests, treaty provisions, and the nature of your income.
Important: this is a draft, not a filing requirement yet
The IRS draft forms page clearly states that draft forms:
- Are not for filing.
- Should not be relied upon as final instructions.
- Remain subject to change.
- Require approval through the Office of Management and Budget process before official release.
The draft Form 1040 is marked “DRAFT, DO NOT FILE.” The IRS may revise, remove, or clarify the question before the final 2026 form is published.
You should therefore treat this as a compliance planning update. Do not use the draft form to submit a return.
Check the IRS draft tax forms page and the final Form 1040 page before filing.
Who may be affected in an international business
The question is most relevant to individuals connected with cross-border businesses. It may affect you if you are:
- A non-U.S. founder of a U.S. LLC or U.S. corporation.
- A UK Limited Company owner with U.S.-source income or U.S. business activity.
- A U.S. citizen or resident alien operating an ecommerce or digital business.
- A dual-status alien who was resident and nonresident during different parts of the year.
- Physically present in the United States while running your business or performing services.
- Married to a nonresident alien where a joint-return election is being considered.
- Receiving compensation for services connected with U.S. activities.
Your company’s status and your personal status are separate matters. A U.S. LLC or C-corporation does not answer an individual Form 1040 question. The relevant individual may still need to assess whether a personal U.S. return is required and which form is appropriate.
For example, a UK founder may operate a U.S. LLC while remaining personally resident outside the United States. Another founder may move to the United States during the year and become a resident alien under the substantial presence test. These situations can produce very different filing obligations.
Do not confuse tax residency with work authorisation
The proposed question combines several concepts that should be reviewed carefully:
- U.S. citizenship.
- U.S. nationality.
- Lawful authorisation to work in the United States.
- U.S. tax residency.
- Filing status.
- The source of compensation.
These concepts overlap in some cases, but they are not identical.
For example, a person may be a non-U.S. citizen but lawfully authorised to work in the United States. Another person may be a U.S. tax resident under the substantial presence test but need to review their immigration documentation separately.
Do not answer based only on your visa label, business ownership, or tax residency assumption. Review the final instructions and ensure the answer reflects your actual position when you file.
Review your residency position before preparing Form 1040
The new question makes it even more important to confirm whether Form 1040 or Form 1040-NR is appropriate.
The IRS generally classifies an individual as a U.S. resident for tax purposes if they meet either:
- The green card test.
- The substantial presence test.
Under the green card test, you are generally a U.S. resident if you are a lawful permanent resident at any time during the calendar year.
Under the substantial presence test, you generally need:
- At least 31 days of physical presence in the United States during the current year; and
- At least 183 weighted days during the three-year period covering the current year and the two preceding years.
The weighting calculation generally counts:
- All days in the current year.
- One-third of the days in the first preceding year.
- One-sixth of the days in the second preceding year.
Some people may qualify for an exception, including the closer connection exception, if they maintain a foreign tax home and stronger connections outside the United States. Form 8840 may be required.
Keep a detailed travel-day record. This will support the correct return position and reduce the risk of an inconsistent filing.
The IRS provides further guidance through its pages on the green card test and the substantial presence test.
Check joint-return elections carefully
A nonresident alien spouse will usually need to consider whether the couple can file jointly on Form 1040.
In certain circumstances, a U.S. citizen or resident spouse may elect to treat a nonresident spouse as a U.S. resident for the entire tax year. This election can allow a joint return, but it can also bring the couple’s worldwide income into the U.S. tax calculation.
The election generally requires:
- A joint return.
- A signed statement.
- Correct taxpayer identification details.
- Consistent treatment of the spouse as a U.S. resident for the relevant year.
The proposed question provides separate boxes for each spouse. Therefore, do not assume that selecting a joint filing status automatically produces the same answer for both people.
Keep the following records available:
- Immigration and work-authorisation documents.
- Travel-day calculations.
- Prior U.S. returns.
- Any statement supporting a joint-return election.
- Foreign income and company records.
- Compensation and payroll information.
This documentation will help you avoid a mismatch between your filing status, residency position, and answer to the new question.
Related draft change: Schedule OI Item K and $250,000 compensation
A second developmen
by Ariful | Sep 22, 2026 | UK Updates
TITLE: UK Tax Penalties 2026: The Compliance Checklist for Limited Companies
Late filing is becoming more expensive for UK limited companies. In 2026, HMRC doubled several Corporation Tax penalties, Companies House continues to enforce strict accounts deadlines, and VAT late payment charges can build quickly.
Use this practical checklist to understand the current penalty landscape and keep your company compliant.
Start with the penalties that can affect your cash flow
Your company may have separate obligations to HMRC and Companies House. Filing one document does not satisfy the others.
Review these deadlines:
- Company Tax Return (CT600)
- Corporation Tax payment
- Annual accounts
- Confirmation statement
- VAT returns and payments
- PAYE and payroll submissions
- Companies House identity verification
HMRC has also resumed issuing automatic flat-rate Corporation Tax penalty notices following its 2026 system update. A delayed notice does not remove the underlying liability.
Check the new CT600 penalties before filing late
The fixed Corporation Tax late filing penalties doubled for returns with filing dates on or after 1 April 2026.
The filing penalty applies even if your company has no Corporation Tax to pay. This is why accurate uk limited company accounting and timely year-end preparation are essential.
New and old CT600 flat-rate penalties
| Late filing position |
Old rate |
New rate from 1 April 2026 |
| Return up to 3 months late |
£100 |
£200 |
| Return more than 3 months late |
£200 total |
£400 total |
| Third consecutive late return, up to 3 months late |
£500 |
£1,000 |
| Third consecutive late return, more than 3 months late |
£1,000 |
£2,000 |
The higher rates continue for later periods until the company files a return on time.
HMRC can also charge tax-geared penalties:
- At 6 months late: 10% of unpaid Corporation Tax.
- At 12 months late: a further 10% of unpaid Corporation Tax.
- At 6 months late: HMRC may issue a tax determination based on its estimate.
A tax determination is an estimated assessment and cannot itself be appealed. You must file the Company Tax Return and pay the amount due. HMRC can then recalculate the tax, interest and penalties using the actual figures.
Read the official HMRC guidance on Company Tax Return late filing penalties.
File first, then appeal if you have a reasonable excuse
You can appeal a CT600 late filing penalty if you had a reasonable excuse. However, you must file the Company Tax Return before submitting the appeal.
Your appeal should explain:
- What prevented the company from filing on time.
- The relevant dates and circumstances.
- Why the issue was outside your reasonable control.
- What action you took once the problem ended.
Do not delay filing while preparing an appeal. Filing the return first stops the compliance problem from continuing and gives HMRC the information needed to recalculate the position.
Protect your company from Companies House accounts penalties
Private companies normally have nine months after their financial year-end to file annual accounts. Missing the deadline creates an automatic late filing penalty.
Companies House annual accounts penalties
| How late the accounts are |
Private company penalty |
| Up to 1 month |
£150 |
| More than 1 month up to 3 months |
£375 |
| More than 3 months up to 6 months |
£750 |
| More than 6 months |
£1,500 |
The penalty doubles if the company files accounts late in two successive financial years.
Public company penalties are higher:
| How late the accounts are |
Public company penalty |
| Up to 1 month |
£750 |
| More than 1 month up to 3 months |
£1,500 |
| More than 3 months up to 6 months |
£3,000 |
| More than 6 months |
£7,500 |
Companies House may issue a penalty warning under the financial penalties regime. Where the outstanding action is completed within 28 days of the warning, no financial penalty is charged. Penalties can escalate for repeat offences.
Do not ignore an overdue filing. Failing to file accounts or a confirmation statement is a criminal offence. Directors can be personally fined, and the registrar can start the process of striking the company off the register.
You can review the official Companies House accounts penalty guidance and appeal only where you have a specific, evidenced reason outside your control.
Budget for the confirmation statement fee
Every company must file a confirmation statement at least once every 12 months, even if nothing has changed.
From 1 February 2026, the filing fees are:
- £50 for a digital confirmation statement.
- £110 for a paper CS01.
Before filing, check your:
- Directors and company secretary.
- People with significant control.
- Registered office.
- Registered email address.
- Shareholder and capital information.
- Lawful purpose statement.
The confirmation statement is separate from annual accounts. Missing it can lead to a financial penalty, company strike-off action and wider disruption to banking or commercial activity.
Read the Companies House confirmation statement guidance.
Keep VAT points and payment penalties separate
VAT late submission penalties are points-based. Each late return normally adds one penalty point, including nil and repayment returns.
The points thresholds are:
- Annual VAT returns: 2 points.
- Quarterly VAT returns: 4 points.
- Monthly VAT returns: 5 points.
Once you reach the threshold, HMRC charges a £200 penalty. A further £200 penalty can apply for each later late submission while you remain at the threshold.
To recover your points, submit every return on time for the relevant compliance period and ensure all returns due in the previous 24 months have been submitted:
- Annual filers: 24 months on time.
- Quarterly filers: 12 months on time.
- Monthly filers: 6 months on time.
Late payment is separate. If VAT remains unpaid:
- A late payment penalty can apply at day 15.
- A further charge can apply at day 30.
- From day 31, an annualised penalty amount can build daily while the debt remains unpaid.
- Late payment interest runs from the day after the due date.
Read HMRC’s guidance on VAT late returns and payments.
Use a single compliance calendar
Most penalties start because a deadline was not tracked. Build one calendar that covers every obligation and review it monthly.
Include:
- Accounting period end.
- Corporation Tax payment date.
- CT600 filing deadline.
- Annual accounts deadline.
- Confirmation statement review date.
- VAT return and payment dates.
- PAYE payment dates.
- Identity verification dates for directors and PSCs.
Where an obligation is handled by an accountant or payroll provider, confirm in writing who is responsible for filing and who is responsible for checking it has been done. Responsibility remains with the company and its directors.
Fix problems early
If a deadline has already been missed, take action now rather than waiting for a penalty notice.
- File the outstanding return or accounts as soon as possible. Penalties and interest generally increase the longer the delay continues.
- Pay what is owed or agree a time to pay arrangement. Reducing the unpaid tax reduces the tax-geared penalties.
- Check whether a reasonable excuse applies. File first, then appeal with clear evidence and dates.
- Review the cause of the delay. Change your processes so the same issue does not recur.
- Consider professional support. An accountant can prepare overdue filings, calculate the exact penalty position and communicate with HMRC on your behalf.
Frequently asked questions
Do Corporation Tax late filing penalties apply if there is no tax to pay?
Yes. The flat-rate CT600 penalties apply even where no Corporation Tax is due. Filing on time is a separate obligation from paying tax.
Does the confirmation statement replace annual accounts?
No. They are separate filings with separate deadlines and separate penalties. Filing one does not satisfy the other.
Can I appeal a Companies House late filing penalty?
You can appeal if you have a specific, evidenced reason outside your control. Companies House will not accept an appeal simply because you were unaware of the deadline or relied on someone else to file.
Do VAT penalty points apply to nil returns?
Yes. Nil and repayment returns count towards the points threshold in the same way as returns showing VAT due.
by Ariful | Sep 22, 2026 | Australia Updates
This **Australia tax update** brings several immediate compliance priorities for businesses in Sydney, Melbourne, Brisbane, Perth, Adelaide and across Australia.
The main issue is the ATO’s data-matching campaign targeting historical super guarantee shortfalls. You should also prepare for stronger Tax Practitioners Board sanctions, review offshore software payments for royalty withholding tax, and track several October deadlines.
ATO data matching is exposing historical super guarantee problems
The ATO is issuing “nudge” letters to small businesses where data suggests that super guarantee obligations may not have been met.
According to reporting from Accountants Daily, the letters compare:
- Single Touch Payroll reporting.
- SuperStream and super fund payment data.
- Employer records for historical quarters.
- Reported earnings against contributions received by employees’ funds.
Some letters reportedly identify potential shortfalls dating back to 2021. The ATO may require employers to lodge Super Guarantee Charge statements for affected quarters up to 30 June 2026.
Do not treat the letter as a routine reminder. It may signal that the ATO has already identified a discrepancy and expects you to investigate promptly.
Reconcile payroll before responding
Start by reconciling each affected pay period against the payment record held by the super fund. Check:
- The employee’s qualifying earnings and SG liability reported through STP.
- The amount actually paid.
- The date the payment was received and allocated by the fund.
- Employee fund details, member numbers and contribution references.
- Any rejected, returned or unmatched payments.
- Payroll corrections, back-payments, terminated employees and leave adjustments.
For quarters ending on or before 30 June 2026, late or unpaid super can create an SGC obligation. This can include the shortfall, nominal interest and an administration charge.
If the ATO’s records are incorrect, gather evidence before contacting the ATO. Payment confirmations, fund receipts, payroll reports and STP correction records will help you demonstrate what happened.
Payday Super makes payment timing an ongoing obligation
Since 1 July 2026, Payday Super has changed the way employers manage superannuation.
Employers must generally ensure that super contributions reach, and can be allocated by, the employee’s super fund within 7 business days of payday. The ATO’s Payday Super guidance confirms that the Small Business Superannuation Clearing House is no longer available.
This means you need a reliable payment process for every payroll cycle. A contribution sent on time may still create a compliance issue if it is rejected or reaches the fund too late.
Use the ATO Payday Super checklist for employers to confirm that your systems are ready.
Your process should include:
- A clear payday-to-super payment timetable.
- A buffer for weekends, public holidays and provider processing.
- Daily monitoring of rejected or returned payments.
- STP checks for qualifying earnings and SG liability.
- Regular reconciliation between payroll, payment providers and super funds.
For growing SMEs and ecommerce businesses with casual, warehouse, customer service or digital teams, this control is particularly important. More frequent pay runs create more opportunities for incorrect employee data or delayed payments.
Check your accountant before the TPB sanctions framework begins
The Tax Practitioners Board’s enhanced sanctions framework takes effect on 1 October 2026.
The TPB has published guidance on the reforms, including stronger consequences for unregistered entities providing or promoting tax agent or BAS services. Registered practitioners may also face substantially higher civil penalties for misconduct.
You should verify that the person or business handling your tax and BAS compliance is properly registered where registration is required.
Check:
- The practitioner’s registration on the TPB register.
- Whether the registration covers the services being provided.
- Who is responsible for preparing and lodging your BAS.
- Whether your income tax and payroll obligations are being handled through a registered tax agent.
- Whether your engagement records and authorisations are current.
This is not only about avoiding penalties for the practitioner. Using an unregistered provider can create operational risk for your business, particularly if BAS, GST or payroll information is submitted incorrectly.
Your ABN, GST registration status and BAS lodgments should be managed through a clear process with documented responsibility.
Review offshore software payments for royalty withholding tax
The ATO’s final Taxation Ruling TR 2026/2 is increasing attention on payments made by Australian businesses to offshore software owners, platforms, distributors and related entities.
The ATO ruling on software and intellectual property royalties explains when software and digital payments may be treated as royalties for Australian income tax purposes.
The issue may affect businesses paying for:
- Offshore SaaS and cloud platforms.
- Software distribution rights.
- Digital content and platform access.
- App store or marketplace arrangements.
- Licensing or use of copyright and other intellectual property.
- Payments to overseas group companies.
Contract labels are not decisive. Calling a payment a “platform fee”, “service fee” or “distribution fee” does not automatically prevent it from being treated as a royalty.
If the payment is a royalty, you may need to consider:
- Australian royalty withholding tax.
- Treaty rates and foreign recipient documentation.
- PAYG withholding registration and payment.
- Annual reporting obligations.
- Whether payments have been correctly classified in your accounts.
The ATO has also released draft PCG 2026/D4, which sets out a compliance risk framework for certain intermediation and distribution arrangements. Consultation closes on 2 October 2026.
The ATO draft practical compliance guideline is relevant to Australian digital businesses, resellers and distributors that make recurring offshore payments.
The wider dispute involving major technology companies is receiving significant coverage, including from the Australian Financial Review. However, this is not only a big-
by Ariful | Sep 22, 2026 | US Updates
TITLE: CBP Entry Type 13 Test: What International Sellers Need to Know
Entry Type 13 Goes Live in ACE Production
On 22 September 2026, U.S. Customs and Border Protection (CBP) deployed the voluntary Entry Type 13 (ET 13) electronic informal mail entry test to the ACE Production environment.
This is a major operational change for international sellers. The U.S. de minimis exemption is now indefinitely suspended for relevant mail and non-postal shipments. Low-value goods entering the USA may now require an electronic entry, even when the shipment value is $2,500 or less.
The change affects sellers in the UK, EU, Canada and Australia, including Amazon FBA operators, Shopify merchants, digital brands with physical products and U.S. importers of record.
Understand What Changed on 22 September
ET 13 creates an electronic filing route for qualifying international mail shipments valued at $2,500 or less.
CBP first deployed the functionality to the ACE Certification environment on 24 July 2026. It is now live in ACE Production under:
- INT-057: Implementation of Entry Type 13 Test in ACE for U.S. Mail Processing.
- CBP-290: Mail Entry Type 13 Test.
- The related Federal Register framework, including CBP’s Entry Type 13 test notice.
The test is voluntary and will continue until CBP announces its conclusion. Interested parties may submit comments throughout the test period.
This does not mean that every low-value shipment must use ET 13. It means eligible parties now have an electronic informal entry option instead of relying on the former duty-free de minimis route.
Check Whether You Can File ET 13
Under 19 CFR 143.26(a), an ET 13 filing may be made by:
- The owner of the merchandise.
- The purchaser of the merchandise.
- A licensed customs broker properly designated by the owner, purchaser or consignee.
A foreign postal operator cannot file as the importer of record. Postal operators, USPS, carriers and freight forwarders may support the process or participate in manifest transmission, but they do not replace the eligible importer of record.
You will also need a basic importation and entry bond before filing. This can be either:
- A single transaction bond.
- A continuous bond.
CBP will not release the shipment without the required bond coverage. Review CBP’s official bond guidance and confirm that your bond is active in ACE before your next postal shipment arrives at the port of arrival.
Prepare Complete Shipment Data Before Filing
ET 13 is not a simplified “ship first, document later” process. You must prepare accurate shipment-level data.
Required information includes:
- Filer code and importer of record number.
- Arrival port, carrier and flight number.
- Country of origin.
- Arrival date.
- Foreign postal operator tracking number.
- Duty type.
- Clear merchandise description.
- Ten-digit HTSUS classification.
- Quantity and weight, where applicable.
- Customs value.
- Duty rate and total duty owed.
Three postal data elements are particularly important:
- SE15: Foreign postal operator tracking number.
- SE30: Shipper or sender name.
- SE35: Shipper or sender address.
SE15, SE30 and SE35 are mandatory. Missing information can create an ACE error and delay release.
Map your products to the correct ten-digit HTSUS classification before dispatch. Do not rely only on an Amazon, Shopify or supplier description. Your customs classification must reflect the actual product, materials, use and country of origin.
Know Which Shipments Cannot Use ET 13
ET 13 is not available for every international mail shipment.
Shipments must use formal entry procedures when they are:
- Valued above $2,500.
- Subject to quota requirements.
- Subject to antidumping or countervailing duties.
From 22 October 2026, HTSUS Chapter 98 and Chapter 99 goods and shipments requiring Partner Government Agency data will also be excluded from the ET 13 route.
A delayed compliance window applies through 22 October 2026. During this period, certain shipments valued at $2,500 or less that involve PGA data, Chapter 98 or 99 duties, or free trade agreement treatment may use the new postal informal entry procedures.
After 22 October, you should expect to use either:
- The ET 13 electronic route, where eligible.
- A formal entry process.
CBP may also require a formal entry for a shipment of any value where it considers this necessary to protect revenue or confirm admissibility.
Budget for Monthly Duty Payments
Duties under the international mail process are paid monthly through ACH debit using Pay.gov.
Payment is due by the seventh day of the month following the shipment’s arrival.
Build this payment into your cash-flow process. For example, duties on eligible mail shipments arriving during September may be due by 7 October.
ET 13 does not attract a Merchandise Processing Fee (MPF). However, you still need to budget for:
- Import duty.
- Broker charges, where a broker files the entry.
- Bond costs.
- Storage or delay charges if data is incomplete.
- Other applicable government agency requirements.
Record each duty payment against the relevant shipment or batch. This will make your customs reconciliation and margin reporting more accurate.
Let Carriers Match the Shipment to the Entry
Carriers can participate voluntarily by transmitting the foreign postal operator tracking number on the manifest.
When both the carrier and filer participate, CBP can match:
- The shipment’s arrival information.
- The tracking number on the manifest.
- The corresponding ET 13 filing.
This creates a clearer audit trail. Ask your postal provider, carrier or logistics platform whether it is participating and whether the tracking number will be transmitted consistently.
The process applies across US-wide operations, including shipments entering through different ports of arrival. Do not assume that a shipment handled through a particular hub will avoid the same ACE requirements.
Separate ET 13 from FBA Inbound Freight
ET 13 is designed for international postal mail. It is not a general entry type for every shipment sent to an Amazon fulfilment centre.
For example:
- UK postal shipments to U.S. customers may qualify for ET 13 if all conditions are met.
- China-to-USA postal shipments may qualify if they use the international postal network and meet the requirements.
- Air freight, ocean freight, courier shipments and many FBA inbound movements do not use ET 13.
- FBA inbound freight must be reviewed under the applicable non-postal entry process, usually with the carrier or licensed customs broker.
- The separate suspension of de minimis treatment for non-postal modes means you should not assume that a low-value courier or freight shipment remains duty-free.
Keep postal, courier and FBA freight flows separate in your records. They may have different entry types, duty calculations, broker arrangements and supporting documents.
Review Your Importer of Record Before the Next Shipment
CBP’s importer-of-record data enforcement also began on 18 September 2026.
CBP can no
