A formal entry is a comprehensive customs declaration required for importing commercial goods valued at $2,500 or higher into the United States. It involves detailed documentation, a customs bond, and payment of applicable duties and fees.
Formal vs. Informal Entry
| Aspect |
Formal Entry |
Informal Entry |
| Value threshold |
$2,500+ |
Under $2,500 |
| Bond required |
Yes |
No |
| Documentation |
Extensive |
Simplified |
| Processing |
Detailed review |
Streamlined |
| Broker |
Usually needed |
Optional |
When Formal Entry Is Required
Value-Based
- Goods valued at $2,500 or more
- Value includes goods, freight, and insurance
- Per shipment, not per item
Regardless of Value
- Quota merchandise (textiles, some agricultural)
- Goods requiring permits
- Certain restricted items
- Anti-dumping/countervailing duty goods
- FDA-regulated products in commercial quantities
Formal Entry Documentation
Required Documents
- CBP Form 3461 (Entry/Immediate Delivery)
- Commercial invoice
- Packing list
- Bill of lading or airway bill
- CBP Form 7501 (Entry Summary)
- Customs bond evidence
Additional Documents (When Applicable)
- Import permits or licenses
- FDA Prior Notice
- FCC declaration
- TSCA certification
- Certificate of origin
- Other agency documents
Formal Entry Process
Step-by-Step
1. CARGO ARRIVES
Manifest filed, cargo available
↓
2. ENTRY FILED (within 15 days)
CBP Form 3461 submitted
Bond on file
↓
3. CBP REVIEW
Documentation examined
May select for exam
↓
4. CARGO RELEASED
After CBP clearance
Pay or defer duties
↓
5. ENTRY SUMMARY (within 10 working days)
CBP Form 7501
Final duty calculation
↓
6. LIQUIDATION
CBP finalizes entry
Adjustments if needed
Customs Bond Requirement
Why Required
- Guarantees duty payment
- Covers potential penalties
- Ensures compliance
- Protects government revenue
Bond Options
| Type |
Use |
Coverage |
| Single Transaction |
One import |
That shipment only |
| Continuous |
Multiple imports |
12-month period |
Bond Amounts
- Single: Typically value + duty
- Continuous: 10% of annual duties, minimum $50,000
Formal Entry Fees
Government Fees
| Fee |
Amount |
| Merchandise Processing Fee (MPF) |
0.3464% of value |
| MPF Minimum |
$27.75 |
| MPF Maximum |
$528.33 |
| Harbor Maintenance Fee (HMF) |
0.125% (ocean only) |
Other Costs
| Cost |
Typical Range |
| Customs broker |
$100-$300+ |
| Bond (annual) |
$300-$500 |
| Exam fees |
$200-$1,000+ |
| Storage (if held) |
Varies |
Formal Entry Timeline
Key Deadlines
| Event |
Deadline |
| Entry must be filed |
15 calendar days from arrival |
| Entry summary |
10 working days from entry |
| Duty payment |
With entry summary (standard) |
| Liquidation |
Typically 314 days |
| Protest |
180 days from liquidation |
Common Formal Entry Types
Entry Type Codes
| Code |
Type |
Description |
| 01 |
Consumption |
Free entry (no duty) |
| 01 |
Consumption |
Dutiable |
| 03 |
Consumption |
AD/CVD merchandise |
| 06 |
Consumption |
FTZ |
| 11 |
Informal |
Under $2,500 |
| 21 |
Warehouse |
Bonded storage |
Working with Customs Brokers
Why Use a Broker
- Complex documentation
- Classification expertise
- Compliance assurance
- Faster clearance
- Reduced errors
Selecting a Broker
- Licensed by CBP
- Experience with your goods
- Technology capabilities
- Communication quality
- Fee transparency
Common Formal Entry Issues
Documentation Problems
- Incomplete invoices
- Missing HS codes
- Value discrepancies
- Incorrect country of origin
Classification Disputes
- HS code disagreements
- Rate interpretation
- Binding ruling requests
- Post-entry amendments
Compliance Issues
- Missing permits
- Partner Government Agency holds
- Anti-dumping determinations
- Country of origin marking