Importers and exporters must become familiar with customs regulations and resources that could help them save money, especially in import duties.
One prevalent route taken by companies is the use of bonded shipments.
But what does ‘bonded’ mean?
As defined by CBP “The in-bond process allows imported merchandise to be entered at one U.S. port of entry without appraisement or payment of duties and transported by a bonded carrier to another U.S. port of entry or other authorized destination provided all statutory and regulatory conditions are met. At the destination port, the merchandise is entered or exported” (https://www.cbp.gov/border-security/ports-entry/cargo-control/bond/bond-regulatory-changes-faqs).
There are three types of in-bond shipments that importers/exporters can use to defer or avoid duties on goods.
- a) Immediate transportation entries or IT entries. This type of entry allows imported goods to be moved from a port of entry to another authorized U.S. location before entering into U.S. commerce or a bonded facility. According to CBP rules “A transportation entry may be filed by: (1) The carrier, or authorized agent of the carrier, that brings the merchandise to the origination port; (2) The carrier, or authorized agent of the carrier, that is to accept the merchandise under its bond or a carnet for transportation to the port of destination or the port of exportation; or (3) Any person or the authorized agent of any person, who has a sufficient interest in the merchandise as shown by the bill of lading or manifest, a certificate of the importing carrier (such as a power of attorney or letter of authorization), or by any other document. CBP may request evidence to demonstrate sufficient interest”.
- b) Immediate export entries or IE entries. This entry type is for “cargo that enters in one United States port and moves in-bond before being exported at another port.”
- c) Lastly, we have Temporary Importation under Bond (TIB). As per CBP “A Temporary Importation under Bond (TIB) is a temporary importation of goods under bond, not imported for sale or sale on approval, without payment of duty with the intent to export or destroy the goods within a certain period of time not to exceed three years from the date of importation. Failure to export or destroy the articles in accordance with the regulations within the appropriate period of time will result in liquidated damages. The only goods that qualify for TIB entry are those listed in the fourteen subheadings 9813.00.05 through 9813.00.75 of the Harmonized Tariff Schedule of the United States (HTSUS).”
It is important to mention that a bonded carrier must perform all bonded movements.
PROMPTUS is a licensed C-TPAT certified customs broker in the United States. We handle ISF’s filings, Consumption entries, FTA entries (DR-Cafta, USMC, etc.), entries involving any government agencies, in-bond entries, temporary importations (TIB’s), and other types of entries. We train and counsel first-time importers and exporters on US CBP requirements, regulations, documentation & compliance. Our brokers will assist you in navigating customs regulations and procedures. Contact us today at 1-877-776-6799.
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