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Customs & Tariff Classification

Formal Entry

Also known as: Type 01, consumption entry, formal customs entry

A formal entry is the full customs filing: a complete declaration of what the goods are, what they are worth, where they were made and what is owed on them, transmitted electronically to CBP and secured by a customs bond. It is what most people mean by "clearing customs", and it is the filing a licensed customs broker exists to make.

It is not a choice. 19 CFR 145.12(a)(2)(i) requires a formal entry for every mail importation exceeding $2,500 in value, and the same provision requires one regardless of value for quota merchandise whether the quota is open or closed, goods subject to antidumping or countervailing duties, and alcoholic beverages and tobacco.

Two further categories are coming rather than in force. 145.12(a)(2) also names mail subject to another agency's requirements and merchandise carrying Chapter 98 or 99 duties, but CBP delayed compliance for those to 22 October 2026 — so until then a qualifying parcel at or below $2,500 can still move on the postal informal process.

The word "formal" describes the procedure, not the seriousness of the situation. A $3,000 watch bought online and a $3,000 pallet of commercial samples take the same filing.

The JFS takeLicensed customs broker · Filer 82G

The thing people find hard to believe is that the filing does not scale down. A formal entry on a personal parcel is the same transmission, the same bond requirement and the same classification work as a formal entry on a container — CBP is not running a simplified track for someone who bought a watch abroad, and the cost of clearance does not shrink to match the sentimental size of the problem.

That is why the threshold matters more than it looks. $2,500 is not a tax band; it is the line where a shipment stops being a postal matter and starts being a customs one, with a licensed filer, a bond and a five-year records obligation attached.

The commonest error we see is assuming value is the only trigger. It is one of six in 145.12(a)(2), and the others catch parcels well below $2,500 — quota goods, anti-dumping merchandise, and from 22 October 2026 an FDA-regulated cosmetic. People check the price and conclude the notice is a mistake.

Watch that date rather than just the regulation. The agency and Chapter 98/99 triggers do not bite until 22 October 2026, so a low-value FDA parcel held this month is usually held for inspection rather than for a formal entry.

Where it matters for compliance

  • 19 CFR 145.12(a)(2)(i): formal entry is required for every mail importation exceeding $2,500 in value, subject to the exceptions the section names.
  • The same provision requires formal entry regardless of value for quota merchandise (open or closed), antidumping and countervailing duty merchandise, and alcoholic beverages and tobacco.
  • The other-agency and Chapter 98/99 triggers carry a delayed compliance date of 22 October 2026. Until then a qualifying shipment at or below $2,500 may use the postal informal process.
  • A formal entry requires a customs bond. There is no formal entry without one.
  • The importer of record carries the duty liability and the 19 CFR Part 163 five-year recordkeeping obligation. Appointing a broker does not move either.
  • CBP may require a formal entry on any mail shipment regardless of value where necessary to protect the revenue — 19 CFR 145.12(a)(1).

Related terms

Informal EntryAn informal entry is the lighter filing CBP allows for lower-value shipments: less documentation, and the entry is liquidated at the time of release rather than months later. It is not the bond-free option people assume it is.Customs EntryA customs entry is the formal declaration an importer or its broker files with the customs authority to secure the release of imported goods and to account for the duties and taxes owed.Customs BrokerA customs broker is a private individual or firm licensed by the national customs authority to act as an agent for importers in the clearance of goods, preparing and filing the entry documents, calculating and remitting duties and taxes, and ensuring that shipments comply with the full web of customs and partner-agency regulations.Importer of RecordThe importer of record is the party legally responsible for ensuring that imported goods are declared accurately, valued correctly, and admitted in compliance with all applicable laws, and for paying the duties, taxes, and fees that result.Merchandise Processing FeeThe merchandise processing fee is a charge assessed by United States customs on most formal and informal import entries to help fund the processing of merchandise, calculated for formal entries as a percentage of the shipment's value within a legislated minimum and maximum, and as a small flat amount for many informal entries.

Reviewed by a licensed customs broker. Definitions are general information, not legal or customs advice for a particular shipment. Duty rates, tariff programs and agency requirements change frequently.