As an importer, clearing customs is perhaps the most important or, if not, one of the most important milestones in your supply chain.
If you sail through the process without a hitch, your costs stay in check, your timelines remain on track, and your compliance record stays clean. Much of this comes down to selecting the right entry type for your shipment.
Now, for someone new to the world of importing or customs clearance, the sheer number of entry types to choose from (Type 01, Type 11, Type 86) can be overwhelming. Apply for the wrong one, and your shipment gets stuck in limbo. That said, there are times when even experienced businesses trip up, as each of the above entry types exists for a reason.
This blog post breaks down the differences between these three entry types, explaining when to use each, the associated timelines, and key considerations. Read on!
The Key Differences Between The Type 01, Type 11, And Type 86 Entries
The Type 01, Type 11, and Type 86 entries have been implemented to streamline the customs clearance process for Customs and Border Protection Agency (CBP). This is done by splitting entries based on their value, the type of goods being imported, and the oversight involved in the importation process.
Let’s look at them individually:
The Type 01 Entry
The Type 01 Entry, a.k.a. the Formal entry, applies by default to any commercial shipment that is exempt from customs or qualifies as a low-value shipment. If your shipment,
- Is valued above $2500.
- Contains items for direct consumer consumption or goes straight into the domestic economy.
- Contains commercial items used in general business operations, manufacturing, or for resale in the USA; it will require a Type 01 entry.
Due to all the above factors, it is also the most paperwork-heavy and scrutinized entry type of the three and the only one that requires a customs bond. All applicable duties and taxes apply to goods requiring this entry type.
The Type 11 Entry
The Type 11 Entry, also known as the Informal Entry, is for shipments that are slightly lower in value and require less regulatory oversight. If your shipment,
- Is valued between $800 and $2500 (even if it’s a commercial shipment).
- Consists primarily of low-risk items or those that aren’t regulated.
You are most likely to rely on this entry type to import eCommerce shipments from China. The process is significantly faster than a Type 01 entry, requires far less paperwork, and eliminates the need for a customs bond. Taxes may be applicable if the goods you are importing fall under any trade agreements or categories of goods that are not exempt from taxation.
The Type 86 Entry
The Type 86 Entry, also known as the De Minimus Entry and the Section 321 entry, is the fastest entry type and is designed for high-volume, low-value shipments.
If your shipments are valued under $800 (capped per day), you can use the Type 86 entry type. Essentially, if you are an e-commerce importer, this is the entry type you need to focus on.
Shipments under this entry type are also exempt from Customs duties, taxes, Merchandise Processing Fees (MPF), and Harbour Maintenance Tax (HMT). However, starting May 2025, any shipment originating from China and Hong Kong will be subject to taxes per Executive Order 14256 and must be filed as a Type 01 or Type 11 entry type.
Here is a brief comparison of the three entry types to help you determine which applies to the shipment you are trying to bring into the country.
| Features | Type 01 | Type 11 | Type 86 |
|---|---|---|---|
|
Value of the Shipment Nature of the shipment |
$2500 or higher |
Between $2500 and $800 |
Under $800 (per person/day) |
|
Customs Bond Documentation Required |
Mandatory Extensive |
May Apply A simplified summary of information. |
Not required 10 precise data elements to be entered into the ACE electronically. |
|
PGA-Regulated Items |
Allowed |
Limited/Restricted |
Allowed (if eligible via ACE) |
When Should You Use Each Entry Type, And What Items Are Not Eligible For The Above Entry Types?
Now, while the table above should help you narrow down (on a broad level) which entry type you should use, it must make clear that the world of customs clearance is complex. Even if a shipment fits a specific value range, certain types of goods might call for a different entry type.
Here are a few more pointers to help you further clarify which entry type you need to pick:
Type 01 Entry
You need to choose Entry Type 01 when:
- You are importing any high-value electronics, machinery, or any product that is categorised for commercial use.
- If any of the goods in your shipment come under the purview of the Food and Drug Administration (FDA), United States Department of Agriculture (USDA), or the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
- If your goods are subject to anti-dumping or countervailing duties (AD/CVD), fall under quota restrictions, or originate from regions affected by special trade actions.
Type 11 Entry
A Type 11 Entry when you don’t want the hassle of formal entries but still need more flexibility than Type 86 allows.
You are eligible for this if:
- You’re importing bulk eCommerce items like T-shirts, shoes, or accessories valued between $800 and $2,500.
- Your shipment is not eligible for duty-free treatment under Section 321, but you still want a simpler process than the Entry Type 01.
The Type 86 Entry
As mentioned earlier, the Type 86 Entry was designed to fast-track e-commerce shipments into the country. You can use this when
- You’re shipping direct-to-consumer orders (under $800 per person per day).
- Your products are eligible for a near-instant customs clearance via the ACE system.
However, not every shipment under the $800 de minimis limit can use this entry type. Items that are:
- Similar to those like tobacco, alcohol, or firearms, and are subject to AD/CVD, quotas, or any excise taxes.
- Agricultural products, mail shipments, or anything needing a fee collected at entry are not eligible here.
Additionally, as previously stated, starting May 2, 2025, any item originating from China or Hong Kong won’t qualify under Section 321.
What Happens If You Pick Incorrectly?
Mistakes in entry classification don’t just create a paperwork issue; they can bring the entire process down to a crawl.
Let’s say you’re running a Post De Minimis Fulfilment Strategy and assume that all your low-value shipments qualify under the Type 86 entry. Now, if any of these packages include a PGA-regulated item, and you have skipped the duty review (unintentionally) to gain fast clearance:
- Your entry will get flagged
- The shipment will be withheld.
Generally, your shipment will now undergo a non-intrusive inspection. However, if customs officials still suspect something is amiss, your shipment will then undergo a more thorough inspection. And if the goods need to be moved off-site to do the same, you are looking at at least a week’s delay.
Your troubles will not just end here. The penalties will be determined based on CBP’s assessment. If they suspect:
- Mere negligence: You will have to shell out around 20% of the shipment’s dutiable value.
- Gross negligence: You are looking at either 40% of the shipment’s dutiable value.
- Fraud (Intentional misrepresentation): You may need to cough up the full domestic value of the shipment.
If these are a frequent occurrence, your shipment could be seized altogether, followed by a suspension of import privileges or, worse, criminal charges.
How to Clear Customs No Matter Which Entry Type You Go Through?
Clearing customs can be easy if you stick to a few best practices.
- Classify your products correctly: Wrong product classification is one of the most common triggers for delays and penalties. Make sure you get the Harmonised Tariff Schedule (HTS) codes right.
- File your entries on time: The Type 01 and Type 11 entries need to be within 15 days of arrival for Cargo Release(Form 3461) and within 10 working days of release for Entry Summary (Form 7501). The Type 86 entry can be filed anytime before the shipment’s arrival (the sooner, the better, though).
- Get a CTPAT certification: Certified CTPAT importers are often assigned a lower risk score by the CBP. This will equate to fewer inspections and faster clearances.
- Maintain immaculate records: It’s not just good practice, it’s mandatory. Under U.S. law, you’re required to keep import records for at least five years.
Now, while these steps seem easy enough, you must be honest with yourself. Can you manage all of the above when volumes increase? Are you well-positioned to stay current with the continually evolving regulations? If your answer was not a confident ”Yes!”, it is best to leave this bit to the experts.
Let CustomsCity Simplify Your Customs Clearance Process
You’ve seen how many steps are involved in picking the right customs entry. One wrong choice can delay shipments, incur penalties, and harm your bottom line, especially during this period of economic uncertainty.
In times like these, your focus should be on running daily operations while expert software vendors like CustomsCity take care of your customs clearance needs.
Get in touch with us for professional support on your entries or book a demo to see firsthand how we can streamline your import process!
Frequently Asked Questions
Entry Type 86 is a customs entry category that supports specific compliance scenarios, such as ecommerce shipments with value thresholds or certain bonded arrangements. Type 86 clearance allows qualifying shipments to move efficiently through CBP systems while meeting regulatory requirements, and it’s especially useful for large or complex international orders.
Both Type 11 and Entry Type 86 are informal entry categories used in cross-border trade, but they apply to different use cases. Type 11 is typically used for low-value shipments under defined value limits, while Type 86 serves other compliance scenarios where eligibility criteria and customs processes differ. Choosing the right type helps reduce delays and improve clearance outcomes.
The best CBP ecommerce compliance platforms international shipping support a range of entry types — including Type 11 and Type 86 — because modern ecommerce and logistics operations need flexibility. These platforms help automate validation, select appropriate entry strategies, and maintain compliance at scale across different product categories and shipment values.
Yes. Ecommerce import/export compliance software AI leverages machine learning and automated data checks to help determine the most efficient customs entry type — whether Type 11, Type 86, or another category. Intelligent systems speed up filings, reduce human error, and provide guidance that aligns with CBP rules to minimize holds and rework.
