The U.S. Customs and Border Protection (CBP) agency’s enforcement date for the new in-bond process is going into effect on Monday, July 29, 2019.
Last summer, CBP implemented several amendments to the in-bond process, effective August 6th, 2018. These amendments impacted bonded carriers. At the time, CBP did not issue penalties or rejections for not following the new processes, however, penalties could be issued if there were numerous instances of the new processes not being followed by the bonded carrier or their appointed agent.
Overview of the amendments introduced in 2018
While carriers have been required to electronically file all requests for authorization to move via in-bond since July 2, 2018, the following additional requirements went into place on August 6th:
- The arrival and location of the in-bond merchandise must be reported electronically the within two business days of arrival at the port of destination or port of exportation.
- The exportation of the in-bond merchandise must be reported electronically within two business days of export.
- CBP’s permission must be electronically requested and received before in-bond merchandise can be diverted from its intended destination port to another port.
U.S. Customs has published some Frequently Asked Questions about the in-bond regulatory changes, which you can review for more details.
Overview of the new enforcement requirements
CBP recently advised the trade community that the above amendments will be fully enforced effective July 29th, 2019. As of this date, all arrivals, exports and diversions for in-bonds must be performed electronically via ACE, CBP will not accept paper CF7512s to perform arrival and export functionality. Failure to comply will result in an ACE edit issuing a rejection, which will result in the shipment being held at the arrival/export location.
It’s the carriers’ responsibility to ensure they’re meeting CBP’s in-bond requirements. Carriers can perform the required functions themselves through the ACE portal. If they do not have access, they can sign up on CBP’s website.
If the carrier fails to meet CBP’s requirements, the in-bond shipments will be delayed at the border or arrival / export location.
Ensure your carrier is aware of the requirements
Importers should proactively ensure their carriers are aware of their responsibility, and can perform the new in-bond status updates themselves or request for assistance from the importers’ broker, when needed, to adhere to the new regulations.
Livingston has compiled a list of frequently asked questions, to help guide the carrier community.