Formal vs informal entry: a formal entry needs a bond, an entry summary and the full ad valorem MPF and is liquidated later; an informal entry, for most shipments up to $2,500, is simpler and pays a flat MPF.
What is a formal entry in US customs?
A formal entry is the standard way commercial goods are entered into the United States for consumption. It is filed by the importer of record or, far more often, by a licensed customs broker holding the importer's power of attorney, and it is transmitted electronically in ACE.
Formal vs informal entry
Under 19 CFR 143.21(a), shipments not exceeding $2,500 in value may be entered informally, except articles valued over $250 that are classified in HTSUS chapter 99, subchapters III and IV. CBP may also require a formal entry for any merchandise when it considers it necessary for admissibility enforcement, revenue protection or the efficient conduct of customs business (19 CFR 143.22). Above the threshold, or where an exception applies, the entry is formal. Most commercial container loads are formal entries.
| Formal entry | Informal entry | |
|---|---|---|
| Value | Over $2,500, or goods excepted from informal entry | Up to $2,500 (19 CFR 143.21) |
| ACE entry type | 01 (consumption) or 03 (antidumping or countervailing duty) | 11 |
| Customs bond | Required (19 CFR 142.4) | Can be waived by the port director on qualifying low-value goods (19 CFR 142.4(c)) |
| Merchandise processing fee | Ad valorem, with a minimum and maximum | Flat fee |
Entry and entry summary
- Entry (CBP Form 3461 or its electronic equivalent): the request for release, with the evidence of the right to make entry, the commercial invoice, a packing list where appropriate and any agency documents (19 CFR 142.3). It must be filed within 15 calendar days after the goods land (19 CFR 142.2(a)) and may be filed before arrival (19 CFR 142.2(b))
- Entry summary (CBP Form 7501): the declaration of HTS classification, value, country of origin and the duties, taxes and fees owed. It is filed with the estimated duties within 10 working days after the time of entry (19 CFR 142.12(b)). Brokers often file the entry summary at the time of entry, so one filing serves as both (19 CFR 142.3(b))
The bond
CBP will not release merchandise on a formal entry until a single-entry or continuous customs bond containing the 19 CFR 113.62 conditions is on file, or cash or U.S. government obligations are deposited in its place (19 CFR 142.4(a)). A bond can never be waived on an antidumping or countervailing duty entry.
After release
The duties deposited on the entry summary are estimates. CBP finalizes them when it liquidates the entry, normally within a year of entry. Low-value shipments that once cleared duty-free under de minimis now need an informal or formal entry too.
Mistakes that delay a formal entry
- No bond or power of attorney in place when the vessel arrives
- Invoice, packing list and bill of lading that disagree on quantity, value or description
- Assuming a shipment under $2,500 can go informal when it carries chapter 99 duties on articles over $250
- Duty deposit not funded before the entry summary is due
Airlift is an FMC-licensed NVOCC, not a customs broker: entries on the shipments it carries are filed by licensed brokers in its network through Airlift's customs clearance service.
Related terms
Get a quote for your shipment
Dealing with Formal Entry on a real shipment? Send the origin, destination and cargo, and we reply with a rate and the services it includes.
Not sure how this applies to your cargo?
Book a call with an Airlift specialist and ask about your shipment.