Meaning
Administrative code designating a formal entry for consumption covers the majority of commercial shipments entering a country. Selecting entry type 01 indicates that the importer intends to bring the goods into the commerce of the nation immediately and pay all applicable duties. This code is used for standard transactions where no special programs like anti-dumping duties or quotas apply.
It is the most common classification for finished goods ready for retail or industrial use.
Import Procedure
Submission of the entry summary and the payment of estimated duties occur shortly after the goods arrive. The use of entry type 01 requires the importer to provide a bond that guarantees the payment of any additional taxes found later. Once the paperwork is accepted, the cargo is released for distribution.
Surety Bond
Protection for the government is provided by a continuous or single-entry bond that covers the potential liability of the transaction. Because entry type 01 involves the final payment of duties, the bond ensures the treasury is made whole if the importer defaults. Most commercial importers keep a continuous bond on file to simplify this process.
Release Timeline
Goods categorized under this code usually move through the border faster than those requiring special inspections. The processing of entry type 01 is highly automated, allowing for rapid clearance in most ports. However, the entry is not considered final until liquidation occurs, which can happen months after the physical release.
This delay allows the government to review the paperwork for any errors in classification or value. Consumption entries are the lifeblood of international trade.
