Customs Entry Types Explained: 01 Consumption to 86 Section 321
When goods arrive at an American port of entry, US Customs and Border Protection (CBP) requires a lot of information. For import compliance managers and logistics directors, perhaps the most important bit is a two-digit code: the customs entry type.
When goods arrive at an American port of entry, US Customs and Border Protection (CBP) requires a lot of information. For import compliance managers and logistics directors, perhaps the most important bit is a two-digit code: the customs entry type.
However, simply memorizing these codes isn’t enough. The type you choose for your business can have long-term impacts on the duties you pay, how long it takes CBP to clear your goods, and even your ability to recover costs later through duty drawback programs.
What Are US Customs Entry Types?
Customs entry types are two-digit codes filed by an importer of record (or their customs broker) when a shipment reaches the United States.
Entry codes not only describe the imported goods, but also what you intend to do with them. For example, the entry type you choose tells CBP whether the imports are here to stay permanently or if they will visit a warehouse before moving on to Canada or Mexico. The entry type also distinguishes between inexpensive eCommerce shipments and high-value materials, among many other attributes.
A Guide to the Major Entry Types
There are dozens of entry codes, but a handful of key types cover the vast majority of imported goods. Here’s an overview of the most critical types for most supply chain operations.
Type 01: Consumption Entry
Type 01: Consumption Entry is among the most common entry codes in US trade. It signifies that the goods are intended for permanent use or sale within the commerce of the United States. Since the goods have arrived to stay, you must pay all applicable duties, taxes, and fees to CBP at the time of entry (or via periodic monthly statement).
Type 03: Warehouse Entry
Sometimes, you might import goods that aren’t ready for sale immediately. Type 03 Warehouse Entry allows merchandise to be entered duty-free into a CBP-bonded warehouse. Duty payment is deferred until the goods are withdrawn from the warehouse for US consumption. These imports can remain in a bonded warehouse for up to five years.
Type 06: Foreign Trade Zone (FTZ) Entry
A Foreign Trade Zone (FTZ) entry is similar in concept to a bonded warehouse, but Type 06 offers significantly greater flexibility around how you process imports for manufacturing. Goods admitted into an FTZ are technically outside of CBP jurisdiction for duty purposes. While in the zone, Type 06 goods can be assembled, manufactured, repackaged, or mixed with domestic products. Duties are only paid once the finished product leaves the FTZ and becomes available for sale in the US.
Type 11: Informal Entry
Informal entries are commercial shipments valued at less than $2,500 and are eligible for streamlined import procedures. Importers often use Type 11 for samples or goods returned to the US following a temporary export.
Type 86: Section 321 (De Minimis)
A Section 321 entry allows imports valued at $800 or less to enter the US duty-free. These goods are said to be eligible for the de minimis rule. However, the US government has gradually reduced the number of countries of origin and the list of goods that qualify for duty-free imports. For example, the Trump administration eliminated the de minimis exemption for all imports from China in 2025.
Other Common Entries
Beyond the major types discussed above, US importers frequently use these codes:
| Entry Code | Type Name | Typical Use Case |
| 21 | Warehouse Withdrawal | Moving goods out of a bonded warehouse for US consumption (duties paid now). |
| 23 | Temporary Import Bond (TIB) | Goods imported temporarily (e.g., for a trade show or repair) with the intent to re-export within one year. No duty paid if exported on time. |
| 51 | Defense Contract Management Office (DCMO) | Used specifically for certain military or government imports. |
| 52 | Government – Dutiable | Dutiable goods imported by a US Government agency. |
How Entry Types Impact Your Duty Drawback and Compliance
The entry type you choose at import has direct financial consequences when those goods are later exported. In other words, the code you select may impact your ability to claim duty drawback refunds.
What is duty drawback? It’s a CBP program that allows US businesses to receive a refund of up to 99% of the duties they pay on imports that are subsequently exported or destroyed. In a typical duty drawback timeline USA regulations allow you to file claims for up to five years from the date of import.
Most Type 01 entries are eligible for import duty refund programs. However, if your import qualified for a Type 86 (Section 321) entry, you paid no duty. Therefore, you can’t claim duty drawback upon export.
Using Type 03 (Warehouse) or Type 06 (FTZ) means that duties were deferred or never paid if the goods are exported directly. Drawback may still apply in complex manufacturing scenarios involving these zones, but the audit trail is vital.
Tips for Choosing the Right Customs Entry
So, how do you know the right entry type to choose? Here are some tips to remember:
Determine the final destination: If you know your imported inventory is destined for Canada or Mexico, do not use a Type 01 entry and pay the applicable duties, only to then file a complex drawback claim. You can utilize a bonded warehouse (Type 03) or TIB (Type 23) to avoid duties entirely.
Master your data: Correct entry depends on accurate valuation and classification. You must follow the HTS classification guidelines to select the correct entry type.
Maintain a continuous bond: Almost all commercial imports require a customs bond to guarantee payment of duties to CBP. A US Customs continuous bond can cover all your entries at all ports for a year.
Customs Entry Types FAQs
Here are answers to some of the most frequently asked questions about entry types:
Do Incoterms determine the entry type?
No. Many businesses maintain an Incoterms 2020 cheat sheet that defines who is responsible for customs clearance and who pays the duty. However, the nature of the goods and their intended use determine the CBP entry code, regardless of which party files it.
Can I change an entry type after it’s filed?
Yes, but it’s not an easy process. If an entry hasn’t yet been liquidated, you may file a Post Summary Correction (PSC). If it has liquidated, you may need to file a Protest. It is far more cost-effective to get the entry type right the first time.
What are the steps to claim drawback on a Type 01 entry?
The standard duty drawback process steps involve gathering proof of import (the customs type declaration) and export (e.g., a bill of lading) and connecting the two through detailed inventory records before filing a formal claim with CBP.
Customs Brokerage: Ensuring Compliance and Maximum Profitability
CBP lists entry codes from 01 to 86, but do you know how to pick the right one for your imports? Do you know how your choice will impact your duty drawback claims and other financial matters? If you’re not sure, it’s time to have the concept of customs brokerage explained to you and your stakeholders.
A customs broker doesn’t just handle your paperwork for you. They also act as a strategic advisor on customs entry type selection, duty drawback, and other issues that impact the bottom line.
J.M. Rodgers Co. helps US importers of all types establish compliant entry procedures and lay the groundwork for duty drawback refunds. To learn more, contact J.M. Rodgers today.