What is a Temporary Importation Under Bond and When Do You Need One?
If you are in the import/export business, it is likely that you will need to obtain a number of different customs bonds throughout your operation. It is highly recommended to get assistance to help you work through all the necessary paperwork and understand what type of bonds you will need for certain shipments.
One of these bonds is a temporary import bond (TIB), which can allow you to bring goods into the United States duty-free.
What Does a Temporary Import Bond Allow?
A temporary import bond is an addition to a preexisting customs bond that will allow importers to bring a specific list of goods into the country without having to pay the traditional customs taxes and tariffs. Instead, the importer will be allowed to post a bond for (typically) twice the amount of the duty, taxes, and any additional fees.
Who Can Obtain a TIB?
As defined by Customs and Border Protection, only items defined in the Harmonized Tariff Schedule of the U.S. (HTSUS) between subheadings 9813.00.05 through 9813.00.75 are eligible for TIB entry. The exception to this is if these items are being brought into the country with the intent of being sold or distributed. Any merchandise being imported for commerce within the US will not be eligible for temporary importation unless it is sold to a foreign purchaser for exportation.
There are 14 subheadings in the HTSUS that describe what goods importers are allowed to bring in under a TIB. They are as follows:
- Items to be repaired, altered, or processed.
- Women’s models for use solely as models in their own locale.
- Items imported by illustrators and photographers intended only for use as models in their own enterprise, or within catalogs, pamphlets, or similar advertising materials.
- Samples intended only for taking orders of goods.
- Items intended solely for assessment with a view to reproduction and movie ads, excluding photoengraved printing plates for examination and reproduction.
- Items imported exclusively for testing, experimentation, or review, including specifications, photos, and articles to be used for study and experimentation purposes.
- Cars, airplanes, airships, balloons, motorcycles, bicycles, boats, racing shells, and the like; including equipment brought temporarily into the country by nonresidents with the intention of taking part in races or similar contests.
- Locomotives and similar train equipment brought into the US temporarily for emergency purposes, such as fighting fires, clearing obstructions, or doing repairs.
- Containers for compressed gasses, both empty or filled, as well as containers for use in converting or holding goods useable for this purpose.
- Professional equipment, repair tools, tools of trade, camping equipment, and brought by nonresidents staying in the country temporarily.
- Items of special designs temporarily imported specifically for use of the manufacturer or production of goods for export.
- Animals, livestock, and poultry brought into the country for the exclusive purpose of breeding, exhibition, or prize-earning competitions.
- Works of art such as engravings, photographs, philosophical or scientific apparatuses brought by foreign artists, scientists, or lecturers with the intention of exhibition or similar encouragement of the subject.
- Automobile chassis and bodies and cars, or any portion of them, with the sole intention of show and exhibition.
Any article imported under the TIB provision must be exported within one year from the date of importation. However, upon application to the director of the port where the entry was filed, this one-year period of exportation may be extended for further periods, which, when added to the initial one year, shall not exceed a total of three years. There are two exceptions to the above time limitations:
- In the case of articles covered under Subheading 9813.00.75 (autos and parts for show purposes), the period of importation may not exceed six months and may not be extended;
- Articles covered under Subheading 9813.00.50 (tools of trade), if seized for reasons other than by suit of private persons, have the requirement of exportation suspended during the period of seizure.
It is important to keep in mind that all situations may vary and you may not always qualify for a TIB. The best way to ensure that you have sorted through any confusing practices is to consult with a Licensed Customs Broker.
Conduct Your Business With Confidence
We can work closely with you to ensure you truly understand CBP’s import/export requirements and policies. Our goal is to help your business avoid costly fees, liquidated damages, or penalties due to improper shipping practices. Call us at 1-877-776-6799 to get your free quote today!