Formal Entry vs Informal Entry Into the U.S.

US imports move through customs under two main entry types:

• Informal entry
• Formal entry

This distinction shapes how US Customs processes a shipment. Recognizing the differences can help importers feel more confident and in control of their shipments, reducing uncertainty and stress.

This post explains formal entry vs informal entry into the U.S. and why entry type affects documentation, duties, and timing.

What Informal Entry Means

Informal entry applies to lower-value, straightforward shipments, generally valued at $2,500 USD or less, although certain regulated goods may still require formal entry even below that threshold. Informal entry often involves:

• Simplified documentation
• Faster processing for eligible goods
• Lower administrative burden

Many eCommerce and small commercial parcels are processed informally when they meet the requirements. Informal entry differs from de minimis (Section 321), which applies to shipments valued at $800 USD or less and may qualify for duty-free entry under specific rules. Informal entry does not remove customs responsibility. It simply reduces complexity for particular shipments.

What Formal Entry Means

Formal entry applies to higher-value or more complex shipments. Formal entry typically requires:

• Full customs documentation
• More detailed classification
• Stronger value support
• Additional compliance steps

Formal entry often involves customs brokers because the process requires precision. Importers encounter formal entry when shipments exceed simplified thresholds or include regulated goods. Most formal entries also require an active customs bond before CBP will authorize release.

Why Entry Type Matters

Entry type affects:

• Which documents does U.S. Customs require
• How much review the shipment receives
• How duties and fees are calculated
• Whether CBP asks for additional details

A shipment that requires formal entry will not move through the same path as an informal shipment.

Common Misunderstanding: Value Alone Determines Entry Type

Many people assume the entry type depends only on the shipment value. In practice, U.S. Customs considers other factors, such as:

• Product type
• Compliance requirements
• Classification complexity
• Import history and risk indicators

Value matters, but classification and admissibility matter too. For example, goods regulated by agencies such as the FDA, USDA, EPA, or FCC may require formal entry regardless of shipment value.

How Classification Connects to Formal vs Informal Entry

Correct HTS classification plays a central role in both entry types. Classification determines:

• Duty rates
• Tariff treatment
• Whether additional controls apply
• Whether the shipment triggers a deeper review

Formal entry requires extreme classification accuracy because errors can cause delays and reassessments. In today’s environment of additional duties and heightened enforcement, classification errors can quickly become expensive.

How to Avoid Entry Surprises

Imports move more smoothly when importers:

• Confirm entry requirements before shipping
• Prepare documentation early
• Use specific product descriptions
• Plan duties and fees upfront

Entry surprises often happen when assumptions replace preparation. The smoothest shipments are those in which entry type, importer responsibility, and documentation are established before the goods arrive.

The Most Important Takeaway

Informal entry covers simpler shipments while formal entry governs larger or more complex imports. The correct entry type depends on:

• Value
• Classification
• Product category
• Compliance requirements

Choosing the right entry type is key to preventing clearance delays and unexpected costs and to ensuring smoother import processes.

Want to Estimate Duties Before Choosing an Entry Path?

Use the BorderBuddy duty & tax calculator to get a quote. It helps you estimate expected import duties, taxes and fees, potential tariff-related charges, and total landed cost before shipping.

BorderBuddy’s calculator also uses AI to help classify goods under the correct HTS (Harmonized Tariff Schedule), which determines duty rates on U.S. imports.

What to Read Next

People learning about entry types often ask next:

• Do I need a customs broker to import into the U.S.?
• What happens if U.S. customs inspects your shipment?
• What documents are required for U.S. customs clearance?
• Common paperwork mistakes that delay U.S. imports

Still Need Help With Your Import?

If you still didn’t find what you were looking for, BorderBuddy is here to help.

• Call us at 1 (877) 409-8163
• Or email us anytime at service@borderbuddy.com

Our team can help you get clear answers and avoid delays at the border.