What characterizes a formal entry?

A formal entry in customs terminology specifically applies to imported goods that meet certain criteria, particularly in terms of value and the requirement of a bond. When goods are valued over $2,500 and are intended for commercial purposes, a formal entry is required. This entry process mandates the filing of specific documentation and often necessitates a bond to guarantee compliance with customs regulations and the payment of duties.

This is crucial for law and regulation as it allows customs to regulate and monitor the importation of goods that could have significant economic implications. The requirement for a bond serves as a security measure, ensuring that the importer fulfills all obligations related to duties and compliance, which is especially important for commercial products that could significantly impact the domestic market.

In contrast, products valued under $2,500 typically do not require such a formal entry process, making option B the only correct characterization of a formal entry. Options referring to values below the threshold or non-commercial imports do not align with the formal entry definition, where specific procedures and bonds are essential for high-value commercial goods.