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Changes to the Customs In-Bond Process

11/17/2017 08:46 am

U.S. Customs and Border Protection (CBP) issued a final rule revising the regulations for goods shipped ‘In-Bond’, effective November 27, 2017. These changes will improve CBP's ability to regulate and track in-bond entries while facilitating the inbond process altogether. The following is a quick summary of the changes:

In-Transit Time for Merchandise Transported by Barge:
The final ruling will extend the in-transit time for in-bond merchandise transported by barge to 60 days, while maintaining the proposed 30-day transit time for the other modes of transportation. Uniform Timeframe for Report of Arrival, Notice of Export and Other Events: In the final rule, CBP is retaining the current time limit of two working days for bonded carriers to report the arrival of merchandise at the port of destination or port of exportation with one technical change.

Description of Merchandise:

  1. CBP is removing the requirement to provide information regarding textiles for all in-bond applications.
  2. CBP is removing the requirement that the in-bond filer identify prohibited or restricted merchandise.
  3. CBP will require that in-bonds be subject to the authority of a U.S. government agency be described with sufficient accuracy to enable the agency concerned to determine the contents of the shipment.
  4. Six-digit HTSUS number will now be required given that importers need this information to determine duty, cost, and admissibility status prior to finalizing purchase or shipment contracts. It is also one of the required data elements for the importer security filing for all goods arriving by vessel.

Reporting the Quantity of In-Bond Merchandise:

CBP is changing the text in the final rule to require "the quantity of the smallest external packing unit” in the in-bond application.

Divided Shipments:

The current regulations allow an in-bond shipment to be split after the shipment reaches the port of destination with a portion of the shipment entered for consumption or warehouse while the remainder of the shipment is forwarded under a new inbond to a different port of destination. Because the provisions for splitting a shipment are not limited to diverted shipments, CBP will be moving the text of this provision, currently proposed §18.5(d), to a new paragraph (m) in §18.1.
Clarification of the Term "Bonded Carrier":

"Bonded Carrier" is now defined as a "carrier of merchandise whose bond under §113.63 of this title is obligated for the transportation and delivery of merchandise." The party that will be ultimately liable is the party whose bond is obligated in the in-bond record for the in-bond movement. 

Transfers (Transshipment) From One Conveyance to Another:
Accordingly, CBP is changing proposed §18.3 by removing the requirement to notify CBP when merchandise is transferred from one conveyance to another. Additionally, CBP is changing proposed §18.3 to require that when in-bond merchandise is taken over by a subsequent bonded carrier which assumes liability for the merchandise, a report of arrival must be filed by the original bonded carrier and the subsequent carrier must submit a new in-bond application pursuant to §18.1 for the merchandise to be transported in-bond.
Seals - Transportation of Bonded Merchandise with Non-Bonded Merchandise:
CBP is changing the sealing requirements by adding new provisions §18.4(b) (2) and (3) in the final rule that 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 allow in-bond merchandise to be transported with nonbonded merchandise in a container that is not sealed and will facilitate the filling of containers that would otherwise be less than container load shipments.

As always, Customized Brokers is ready to answer any additional questions regarding these new inbond related changes as we thank you for choosing us as your customs clearance partner.