CBP Issues Final Rule on Changes to Goods Shipped ‘In-Bond’

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U.S. Customs and Border Protection (CBP) issued a final rule revising the regulations for goods shipped ‘In-Bond’, effective November 27, 2017. In-bond shipments are transported within the U.S. under bond, without entering into the commerce of the U.S. or payment of duties.

There are three In-bond types:

  1. IT: In-Transit bonds, where a good is moved to another port for entry filing;
  2. T&E: Transportation and Exportation bonds, where a good is transported to another port and then exported from the U.S.; and
  3. IE: Immediate Export bonds, where a good may be immediately exported from the same port it arrived in.

Summary of major changes to In-bond:
-Barge In-Transit Time: Extended to 60 days; other modes remain at 30-days.
-Reporting Timeframes: Two (2) business days for Reporting-of-Arrival and Notice-of- Export.
-Description of Merchandise:

  1. In-bond merchandise subject to the authority of a U.S. government agency must be described with sufficient accuracy to enable the agency concerned to determine the contents of the shipment.
  2. Six-digit Harmonized Tariff Schedule (HTS) number required.
  3. Identification of Prohibited or restricted merchandise will not be mandatory.
  4. U.S. or foreign government authority issued visa, permit, license, etc. reporting will not be required.
  5. Detailed reporting for textiles for IT In-Bonds remains in effect.

-Reporting Quantity: Will require the quantity of the smallest external packing unit.
-Divided Shipments: In-bonds may be split once the shipment reaches the port of destination, with some goods entered for consumption or warehoused, and the rest forwarded under a new in-bond to another port of destination. The regulations for this will move from 19 CFR 18.5(d) to 18.1(m).
-Bonded Carrier: Definition added to identify which party is liable for a failure to comply with in-bond requirements.
-Transfers (Transshipment) from One Conveyance to Another: CBP will no longer require notification when in-bond merchandise is transferred from one conveyance to another. Since CBP needs to know is who has assumed liability for the in-bond merchandise, the original bonded carrier would file a report of arrival, and the subsequent carrier would submit a new in-bond.
-Sealing: Requirements changed to allow 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. This will facilitate the filling for less than container load shipments.

These changes were the result of a February 22, 2012 notice of proposed rulemaking (NPRM).

If you have any questions regarding changes in the In-Bond Process, Livingston can help! Please contact either your Livingston account manager or our regulatory affairs department at usregaffairs@livingstonintl.com.