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In-Bond Shipments: Evolving Changes at U.S. Border

By Debbie Dent
Director, Program Services
Border Connect, Inc.

 

The in-bond process allows imported merchandise to be entered at one U.S. port of entry without payment of duties and transported by a bonded carrier to another U.S. port for entry or export. The new requirements apply to Immediate Export (IE) bonds, Immediate Transportation (IT) bonds, and Transportation & Exportation (T & E) bonds.

A moving target date for implementation has been occurring. On Jan. 4, 2018 U.S. Customs & Border Protection (CBP) announced the time frame for initial implementation for these regulatory changes will now be July 2, 2018. On that date paper forms will no longer be accepted for input into the ACE system by CBP Officers.

The changes to be expected:

  • Paper in-transit bond applications will no longer be allowed and an electronic in-bond application must be filed for in-bond merchandise transported by ocean, rail or truck, except for merchandise transported by pipeline and truck shipments transiting the U.S. from Canada. It is expected that air in-bond shipments will eventually be fully paperless, but CBP is not amending those applicable regulations at this time
  • The HTS classification number (to the six digit) will be required on the in-bond application
  • The quantity must be declared on the in-bond application at the smallest external packing unit
  • Diversion to an alternate port of destination or exportation must be electronically requested for approval by Customs
  • The preparer of the in-transit bond application, or any other party that is permitted to file the in-bond application, must electronically report the arrival date and location within two business days of arrival at the destination or exportation port. CBP has clarified that the party whose bond is obligated is the party that is responsible for ensuring the in-bond record is up-to-date

On Aug. 6, 2018 electronic reporting for all transactions will be mandatory. CBP will no longer accept copies of CBPF 7512 to perform arrival or export functions. These responsibilities will be the requirement of the carrier. Additionally, a diversion to a port other than reported on the original in-bond will be required. An ACE edit will reject arrival if not performed. Electronic reporting of bonded cargo location (FIRMS Code) will be required.

At this time no date is set for implementation of the provision requiring the 6-digit Harmonized Tariff Schedule requirement for Immediate Transportation Movements.

Further details regarding the final rule can be found in the Federal Register Notice dated Sept. 28, 2017 at the following link: https://www.gpo.gov/fdsys/pkg/FR-2017-09-28/pdf/2017-20495.pdf

The only thing consistent at the border is change”

Debbie Dent, can be reached at 1-800-596-5176 or by e-mail

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