In-Bond Shipment

What does it mean when a shipment is “in bond”?

When a shipment is in-bond, it signifies that the product or commodity is moving within U.S. boundaries but has not yet been processed by U.S. Customs processes to officially enter U.S. government authority to be consumed by U.S. persons or companies. In other words, the in-bond shipment may be transported and stored in the United States without incurring import tariffs, taxes, or customs fees. The in-bond cargo must be delivered by a bonded carrier and stored in a bonded warehouse in the United States, if applicable.

 Key Takeaways

• • When a shipment is in-bond, it signifies that the product or commodity is moving within U.S. boundaries but has not yet been processed by U.S. Customs processes to officially enter U.S. government authority to be consumed by U.S. persons or companies.
  • The main benefit of in-bond shipping and warehousing is the avoidance or deferment of duty and tax payments.

What are the requirements for in-bond shipments?

The requirements for in-bond shipments depend on where they are being transported and how. A Transportation and Exportation Bond (T & E) is necessary if the shipment must be carried via two sites within the United States in order to be exported to another country. An Immediate Transportation Bond (IT) is necessary when the shipment is transported between two points of entry within the customs area of the United States in order to access the destination port.

What documents should I have for in-bond loads?

An in-bond application is a detailed overview of shipment information and transit details that must be provided to CBP via an approved electronic data interchange system (EDI). Any other unique identifying information associated with this shipment: Any other unique identifying information related with this shipment must be included in the in-bond application submitted to the CPB. This comprises entry numbers, visas, and licenses granted by the United States or any foreign authority. Every CBP in-bond application must include the following information:

• A description of the merchandise/commodity in transit: this description must provide enough detailed cargo details for CBP to determine which governmental entity governs it.
• The commodity’s HTSUS number: Each commodity is allocated a six-digit Harmonized Tariff Schedule of the United States number. This number must be supplied.
• Amounts: All cargo quantities must be specified as precisely as feasible, with total quantities of the “smallest external packaging unit” listed.
• Container seals and numbers (where applicable): Every in-bond application for containerized cargo must include the container’s number as well as the number connected with the container’s seal.
• Cargo location within the United States: International cargo bound for a U.S. port for export must include the port’s name. If the shipment is going via a border crossing, that information must also be included.

What are the benefits of in-bond shipping?

The in-bond process allows imported merchandise to be entered at one U.S. port of entry without appraisal or duty payment and carried by bonded carrier to another U.S. port of entry or other allowed destination if all statutory and regulatory conditions are met. The main benefit of in-bond shipping and warehousing is the avoidance or deferment of duty and tax payments.

How does customs compliance software help optimize in-bond shipping processes?

Customs compliance software specializes in handling customs-related procedures, ensuring compliance with regulations, managing duty payments, and facilitating smooth customs clearance. It can automate the filing of necessary customs documentation like import/export declarations and bond forms.