If you’re importing goods into the United States, one of the first decisions you’ll encounter is which customs entry type applies to your shipment. While most importers focus on duties, tariffs, and shipping costs, the entry type you choose determines how U.S. Customs and Border Protection (CBP) processes your goods, what documentation is required, whether a customs bond is needed, and how much compliance risk you carry.
This topic became even more important after the suspension of Section 321 de minimis treatment. Millions of shipments that previously cleared through Entry Type 86 suddenly had to transition to either formal or informal entry procedures.
This guide explains the three most important U.S. customs entry types, Type 01, Type 11, and Type 86, how they work, when they apply, and how to determine the correct option for your shipment.
What a Customs Entry Type Is — and Why It Matters
Every commercial shipment entering the United States must be reported to CBP using a specific entry type. Think of the entry type as a two-digit code that tells CBP how the shipment should be processed, what regulations apply, and what level of documentation is required.
Choosing the wrong entry type can lead to delays, additional costs, customs exams, penalties, or even seizure of merchandise.
Importers and customs brokers file entry information electronically through the Automated Commercial Environment (ACE), often using the Automated Broker Interface (ABI).
The Two-Digit Code That Controls Your Import
CBP uses entry type codes to categorize imports based on factors such as:
- Shipment value
- Product type
- Regulatory requirements
- Intended use of the goods
- Duty treatment
The most common codes include:
- Type 01 – Formal Consumption Entry
- Type 11 – Informal Entry
- Type 86 – Section 321 Entry (eliminated)
- Type 06 – Foreign Trade Zone Entry
- Type 21/22 – Warehouse Entries
- Type 23 – Temporary Importation Under Bond (TIB)
- Type 47 – Drawback Entry
For most importers, understanding Types 01 and 11 is enough to manage everyday imports.
Who Files the Entry Type: Importer of Record or Broker
The Importer of Record (IOR) is legally responsible for ensuring the accuracy of customs filings.
While importers can technically file their own entries, most businesses work with a licensed customs broker who submits entry data, classifies products using the correct 10-digit HTSUS code, calculates duties, and communicates with CBP on the importer’s behalf.
Entry Type 01: Formal Entry
Formal entry is the most common entry type for commercial imports entering the United States.
If your shipment exceeds certain value thresholds or contains regulated products, CBP requires a formal entry regardless of how the goods arrive.
When Type 01 Applies
Type 01 generally applies when:
- Shipment value exceeds $2,500
- Goods are regulated by a government agency
- The shipment requires extensive compliance review
- A customs bond is required
Even low-value shipments can require formal entry if they contain regulated products overseen by agencies such as:
- FDA
- USDA
- EPA
- FCC
In these situations, shipment value becomes secondary to regulatory requirements.
What Type 01 Requires: Bond, Form 7501, and Full Duties
Formal entry requires significantly more documentation than informal entry.
Typical requirements include:
- Customs bond (single-entry or continuous)
- CBP Form 3461 (Cargo Release)
- CBP Form 7501 (Entry Summary)
- 10-digit HTSUS classification
- Payment of all applicable duties, taxes, and fees
Most formal entries are submitted electronically through ACE.
Because Type 01 entries receive greater scrutiny, classification accuracy and recordkeeping become especially important.
How Customs Bonds Work for Formal Entry
Quick answer: A customs bond guarantees that CBP will be paid the duties, taxes, and fees on your import. You can post a single transaction bond for one shipment or a continuous bond that covers a year of entries, and frequent importers almost always choose the continuous option.
A formal entry cannot clear without a bond in place, so this is one of the first things to arrange when you move off Type 86. There are two common forms. A single transaction bond covers one entry and is usually sized to the value of the goods plus the duties, taxes, and fees, with higher amounts required for some regulated commodities. A continuous bond covers all of an importer’s entries at every US port for a year and is typically set at the greater of a $50,000 minimum or ten percent of the duties, taxes, and fees paid over the previous twelve months. For a business filing more than a handful of entries a year, a continuous bond is both cheaper per shipment and far less administrative work than buying a new single bond each time. A customs broker can secure either through a surety on your behalf.
Entry Type 11: Informal Entry
Informal entry exists to simplify customs processing for lower-value commercial shipments that do not present significant compliance risks.
For many importers affected by the elimination of Type 86, Type 11 has become the default replacement.
When Type 11 Applies
Type 11 generally applies when:
- Shipment value is $2,500 or less
- Goods are not regulated
- No customs bond is required
- Merchandise qualifies for informal processing
Many e-commerce shipments now clear through this process.
The lower documentation burden often results in faster release times and lower compliance costs than formal entry.
What Type 11 Requires — and What It Excludes
Although simpler than formal entry, informal entry still requires accurate customs information.
Importers must provide:
- Correct product descriptions
- Accurate values
- 10-digit HTSUS classifications
- Country of origin information
Informal entry typically excludes:
- Alcohol
- Tobacco
- Firearms
- Food products
- Pharmaceuticals
- Medical devices
These products usually require formal entry regardless of value.
The regulatory basis for informal entry can be found in the informal entry rules in 19 CFR Part 143.
Entry Type 86: Section 321 — and Why It No Longer Works
For years, Type 86 became the preferred clearance method for e-commerce imports because it enabled duty-free processing of qualifying low-value shipments.
That system no longer exists.
What Type 86 Was and How It Cleared Low-Value Goods
Entry Type 86 was created to support Section 321 de minimis treatment.
Previously, shipments valued at $800 or less could enter the United States duty-free when eligibility requirements were met.
Benefits included:
- Faster clearance
- Reduced paperwork
- No customs bond
- No duties
This made Type 86 extremely popular among e-commerce sellers, marketplaces, and dropshipping operations.
If you want a deeper explanation, see how Entry Type 86 compares to formal entry for e-commerce sellers.
Why ACE Rejected Type 86 on August 29, 2025
Following changes to U.S. trade policy and the suspension of de minimis treatment, ACE began rejecting Type 86 filings on August 29, 2025.
As a result:
- Type 86 is no longer available
- Importers must use Type 01 or Type 11
- Duties and fees now apply to shipments that previously entered duty-free
Businesses that relied on Type 86 had to completely redesign their import processes.
International Mail and Postal Shipments After De Minimis
Quick answer: Postal parcels were treated separately from ACE entries. International mail did not stop, but the documentation and duty rules tightened, and a flat duty option for postal items has been phased out.
When ACE began rejecting Type 86 and Section 321 manifest filings, international postal shipments were carved out under their own process so mail could keep moving while CBP stood up a collection system. During the transition, carriers could choose between a flat per item duty and an ad valorem duty on postal parcels. That flexibility ended on February 28, 2026, after which carriers must use the ad valorem method exclusively. International mail also now needs a Harmonized System code on the customs declaration, so the older idea of a postal parcel slipping through with a vague description no longer holds. If you ship to US customers by post, confirm how your carrier is collecting and remitting the duty before you rely on that channel.
The 2027 Repeal and Why the Change Is Permanent
Quick answer: The August 2025 suspension was an executive action, but the end of de minimis is now written into law. The One Big Beautiful Bill Act permanently repeals the Section 321 de minimis privilege for every country on July 1, 2027, so importers should plan for a future without duty free low value entry rather than wait for a reversal.
It is easy to read the August 2025 change as a temporary disruption. It is not. The executive order suspended duty free treatment, and separate legislation then made the repeal permanent. Starting July 1, 2027, the $800 threshold is removed for all countries of origin, and every commercial shipment will require either an informal or a formal entry with duties paid, regardless of value.
The same legislation also added a new civil penalty for misusing the de minimis privilege. Effective August 3, 2025, a person who enters or facilitates the entry of goods under Section 321 in violation of another customs law can face a penalty of up to $5,000 for a first violation and up to $10,000 for each violation after that, in addition to any other penalty. Order splitting, undervaluation, and misclassification are the behaviours most likely to trigger it.
CBP is also developing an Enhanced Entry Process that would combine the former Entry Type 86 Test and the Section 321 Data Pilot into a single data driven filing path for low value goods. The details are still taking shape, so treat informal and formal entry as your reliable options today and watch CBP guidance for the replacement process.
Type 01 vs Type 11 vs Type 86: Side-by-Side Comparison
| Factor | Type 01 – Formal | Type 11 – Informal | Type 86 – Section 321 |
|---|---|---|---|
| Status | Active | Active | Eliminated Aug 29, 2025 |
| Value Range | Over $2,500 or regulated goods | $2,500 or less, non-regulated | Was $800 or less |
| Customs Bond | Required | Not required (non-regulated) | Not required |
| Duties | Apply | Apply | Were duty-free |
| 10-Digit HTSUS | Required | Required | Required since Feb 2024 |
| Main Forms | CBP 3461 + 7501 | CBP 3461 | Type 86 filing |
| Regulated Goods | Permitted with PGA review | Generally excluded | Required PGA reporting |
| Typical Clearance | 1–3 business days | Hours to 1 day | Same day (historically) |
Merchandise Processing Fees by Entry Type
Quick answer: Both formal and informal entries carry a Merchandise Processing Fee, but they are calculated differently. Formal entry uses a percentage of the shipment value with a set minimum and maximum, while informal entry uses a lower flat fee.
The Merchandise Processing Fee, or MPF, is a CBP charge separate from duty, and it is one of the practical differences between entry types. Formal Type 01 entries are charged an ad valorem MPF, currently 0.3464 percent of the entered value, subject to a minimum and a maximum amount that CBP adjusts each fiscal year. Informal Type 11 entries are charged a flat MPF instead, which is considerably smaller. Because these minimum, maximum, and flat amounts change annually, confirm the current figures on CBP’s user fee schedule when you build your landed cost. The takeaway for planning is simple: a string of small parcels filed informally carries many small flat fees, while consolidating them into one formal entry trades those for a single percentage based fee, which is often cheaper at volume.
How to Choose the Right Entry Type for Your Shipment
Most importers can determine the correct entry type by evaluating value, regulatory requirements, and classification.
Quick Decision: Which Entry Type Applies?
- Are the goods regulated by FDA, USDA, EPA, or FCC? → Use Type 01.
- Is shipment value greater than $2,500? → Use Type 01.
- Is shipment value $2,500 or less and non-regulated? → Use Type 11.
- Considering Type 86? → It no longer exists.
Always verify your specific commodity requirements with a customs broker because certain products may have special rules.
Step 1: Check the Shipment Value Against $2,500
The $2,500 threshold is the primary dividing line between informal and formal entry.
If the declared customs value exceeds this amount, formal entry is usually required.
Step 2: Check Whether the Goods Are Regulated
Regulatory oversight can override value thresholds.
Products controlled by FDA, USDA, EPA, FCC, or other Partner Government Agencies (PGAs) often require formal entry regardless of shipment value.
Step 3: Confirm Your Bond and HTSUS Classification
If formal entry is required, you’ll need:
- A customs bond
- Accurate HTSUS classification
- Complete customs documentation
Classification errors frequently create the most expensive compliance problems.
What Replaces Type 86 for Ecommerce Importers
Quick answer: There is no direct replacement for duty free Type 86. Most former de minimis sellers now move to informal Type 11 for individual low value parcels, consolidate shipments into bulk formal entries, or shift inventory into US or Canadian fulfillment to control landed cost.
Losing Type 86 changes the economics of direct to consumer shipping, so the right answer depends on your volume and margins. Three patterns have emerged.
The first is to keep shipping parcels individually and file them as informal Type 11 entries where the value is $2,500 or less and the goods are not regulated. This is the closest thing to business as usual, but every parcel now owes duty and carries its own fees, so it suits lower volume sellers or higher margin products.
The second is consolidation. Instead of importing hundreds of small parcels, you import inventory in bulk under one formal entry, clear it once, then fulfill domestically. This spreads the fixed costs of a formal entry across many orders and usually lowers the per unit cost at scale.
The third is to relocate fulfillment closer to the customer, either by warehousing inventory inside the United States or by using a Canadian fulfillment base for North American orders. Many brands that built their model on cross border parcels are making this shift to keep delivery fast and costs predictable.
One valuation point is worth raising with your broker. Dutiable value is based on transaction value, which for a direct to consumer seller is not always the retail price the customer pays. Getting valuation and classification right is where the savings and the compliance risk both live, so confirm your approach rather than assuming the retail price is the figure CBP expects.
How Tariffs Now Stack on Former De Minimis Shipments
The entry type you choose decides how a shipment is filed, not how much tariff it owes. A parcel that once entered free under Type 86 now faces the ordinary duty for its classification, plus any trade remedy tariffs that apply to its country of origin, such as Section 301, Section 232, or the IEEPA reciprocal tariffs. Switching between informal and formal entry does not change that exposure. It only changes the paperwork, the fees, and the speed of release. This is why classification and country of origin now matter far more than they did in the de minimis era, when value alone decided everything.
Other Customs Entry Types You May Encounter
While Types 01 and 11 handle most imports, other entry types serve specialized purposes.
Warehouse, FTZ, TIB, and Drawback Entries
Common examples include:
- Type 06 – Foreign Trade Zone (FTZ) Entry
- Type 21/22 – Bonded Warehouse Entry
- Type 23 – Temporary Importation Under Bond (TIB)
- Type 47 – Duty Drawback Entry
These entry types support unique business models involving storage, temporary imports, exports, or duty recovery.
Most importers won’t use them regularly, but understanding their existence can help when exploring advanced customs strategies.
What Happens If You Choose the Wrong Entry Type
Selecting the wrong entry type is more than a paperwork issue.
Incorrect filing can result in delays, examinations, additional duties, penalties, and significant compliance costs.
We recently worked with an importer that continued attempting Type 86 filings after the de minimis suspension. After reviewing their shipment profile, we transitioned their imports to Type 11 and prevented repeated filing rejections that were delaying customer deliveries.
Penalties, PSC, and Protest
CBP penalties under the customs fraud statute scale with culpability. Where there is no loss of revenue, they are commonly expressed as a share of the dutiable value, and where duties were actually lost, they are calculated as a multiple of that loss instead. As a general guide:
- Approximately 20% of the dutiable value for negligence
- Approximately 40% for gross negligence
- Up to the full domestic value for fraud
When a revenue loss is involved, the negligence and gross negligence figures are framed as a multiple of the lost duties rather than a flat percentage, so the real exposure depends on how much duty was underpaid.
Repeated violations may result in:
- Cargo seizure
- Increased inspections
- Loss of import privileges
If you discover an error before liquidation, you may file a Post Summary Correction (PSC).
After liquidation, corrections generally require filing a Protest.
Both options are far more costly than getting the entry type right from the beginning.
If you’re uncertain about classification, valuation, or entry requirements, consider using our US customs clearance service before filing.
Frequently Asked Questions
What is the difference between Type 01 and Type 11?
Type 01 is a formal entry used for shipments over $2,500 or regulated goods and requires a customs bond. Type 11 is an informal entry for non-regulated shipments valued at $2,500 or less and generally does not require a bond.
Is Entry Type 86 still available?
No. ACE began rejecting Entry Type 86 filings on August 29, 2025, following the suspension of Section 321 de minimis treatment.
What is the value threshold for informal entry?
The general threshold for informal entry is $2,500, although certain products may have different requirements depending on regulations and commodity-specific rules.
Which entry types require a customs bond?
Type 01 formal entries require a customs bond. Type 11 informal entries generally do not require one unless special circumstances apply.
Can I file my own entry, or do I need a broker?
Importers may file their own entries, but many businesses use licensed customs brokers to ensure proper classification, documentation, and compliance with CBP requirements.
Can I change the entry type after filing?
In some situations, corrections can be made through a Post Summary Correction before liquidation or through a Protest after liquidation. The available options depend on the stage of the customs process.
Is the end of Type 86 and de minimis permanent?
Yes. The August 29, 2025 suspension was an executive action, and the One Big Beautiful Bill Act then repealed the de minimis privilege in law for all countries effective July 1, 2027. Importers should plan for a lasting environment without a duty-free low-value entry.
Do duties apply to low-value shipments now?
Yes. The $800 threshold no longer provides duty-free treatment for commercial goods. Shipment value still affects whether an entry is informal or formal, but duties, taxes, and fees now apply regardless of how small the shipment is.
Disclaimer
This article is provided for informational purposes only and does not constitute legal, customs, or tax advice. Customs regulations change frequently. Always verify current requirements with CBP and consult a licensed customs broker regarding your specific shipment.
