CBP Changes to the In-Bond Process

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.

DATES: This rule is effective on November 27, 2017. A flexible enforcement period will be granted for 90 days after the effective date of this rule.

3 TYPES OF IN-BOND ENTRIES

1. Immediate Transportation (IT)
   1. allows merchandise upon its arrival at a U.S. port to be transported to another U.S. port, where a subsequent entry must be filed
2. Transportation and Exportation (T&E)
   1. allows merchandise to be entered at a U.S. port for transit through the United States to another U.S. port, where the merchandise is exported without the payment of duties.
3. Immediate Exportation (IE)
   1. allows cargo that has arrived at a U.S. port to be immediately exported from that same port without the payment of duties.

5 MAJOR CHANGES TO THE IN-BOND PROCESS:

1. Except for merchandise transported by pipeline and truck shipments transiting the U.S. from Canada, elimination of the paper in-bond application (CBP Form 7512) – require carriers and agents to electronically file the in-bond application;
2. Requirement of additional information on the in-bond application including the six-digit U.S. Harmonized Tariff Schedule number, if available;
3. Establishment of a 30-day maximum transit time to transport in-bond merchandise between U.S. ports, for all modes of transportation except pipeline and barge (60 days);
4. Requirement for carriers to electronically request and receive permission from CBP before diverting in-bond merchandise from its intended destination port to another port; and
   1. allows for the transportation of in-bond merchandise with non-bonded merchandise in a container or compartment that is not sealed, if the in-bond merchandise is corded and sealed, or labeled as in-bond merchandise.
5. Requirement for carriers to report the arrival and location of the in-bond merchandise within two business days of arrival at the port of destination or port of exportation.

Changes to this rule, including the automation of the in-bond process, will enhance CBP’s ability to regulate and track in-bond merchandise and ensure that in-bond merchandise is properly entered or exported.

For more information, visit the CBP’s Federal Register Notice.