In-Bonds (CBP 7512)
Mercancia bajo finanza Aduanero
Objectives
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Regulatory Basis – 19 C.F.R., Part 18
What is the meaning of “In-bond”
Bonded Carrier’s
Why is In-bond Used?
Benefits of Using In-Bond
Types of “In-Bond” Entry
In-bond CBP compliance
Export in a timely manner
Avoid fines/penalties from U.S. Customs
What is the meaning of InBond?
• Transportation Entry (CBP 7512), defined in regulations
under19 CFR, Chapter 18.
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Defined: Chapter 18 covers the transportation of merchandise that has entered the Customs
Territory of the United States but is being transported to another port for either Entry or
exportation.
• CBP allows cargo to move through the US prior to the cargo
being cleared by CBP. It is moved under the coverage of a
Customs custodial bond. The bond acts as an insurance
policy against which CBP will assess any penalties that may be
levied against the bond holder for failure to properly follow
CBP procedures, declare and clear in-bond cargo.
• Carrier must have a customs custodial bond in order to carry
“in-bond” merchandise.
Bonded Carriers
• Carriers must be bonded
– Merchandise transported from one port to another in the USA In-Bond
must be delivered to a:
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Common carrier (truck, airline, railroad, steamship or other transportation line
Contract Carrier
Freight Forwarder
Private Carrier
This is bonded for that purpose!
Why is In-Bond Used?
• To transit from merchandise from one Port of entry to another
Port.
• Transit the USA only to ultimately export to another Foreign
country (For example, Mexico or Canada)
• Transit the USA to another U.S. City with intent to make an
import entry for consumption or placed in a bonded
warehouse or Foreign Trade Zone (FTZ)
• Moving merchandise between two shipping companies within
a Port of export
Benefits of Using In-Bond
• To avoid the payment of Customs Duties and Fees
• Allows the movement of cargo cleared at another designated
Customs Port
• Can be initiated by Customs Brokers, Freight Forwarders, Trucking
Companies, railroads, importers, Foreign Trade Zones.
• Allows the filing of in-bond movements electronically via “QP” for
quick Customs processing and release of cargo.
• Allows some regulatory flexibility, e.g. marking requirements if not
going to be consumed in the USA.
General Information
• Bonded Carrier
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Customs Surety Bond purchased to ensure compliance
Accepts responsibility for accuracy of information
Assures integrity of complete load to final destination
No manipulation of cargo without CBP permission
Accepts responsibility of monetary penalties
Three types of In-bond Entry Types:
– IT (Immediate Transportation), Type 61
– T&E (Transportation & Exportation), Type 62
– IE (Immediate Exportation), Type 63
T&E
(Transportation & Exportation)
Example - Shipment
moving from Canada
to Pharr, TX
With the T&E the
shipment can be
exported or
cancelled in Pharr
and an IE will be
generated to export
it to Mexico
IT (Immediate Transportation)
Example A shipment can
be moved from
Canada to Pharr, TX
but can not be
exported, an IE will
have to be
generated to be
able to export it
T&E (Transportation & Exportation)
Example –
A shipment can
be moved from
Mexico thru Pharr, TX
to Canada. “QP” In-Bond
Generated Clears CBP-Pharr
IE
(Immediate Exportation)
This is generated
for a shipment
that is a at a port
ready to be
exported
Pharr,TX
MEXICO
Mexican Pedimento
• It is required that the pedimento number be listed on the
inbond. Note: Not required by T&E Entry types.
• WHY?
You must have proof that the merchandise that was exported
was imported into Mexico.
If a pedimento number is
changed, we must make an amendment to our inbond which
results in delays.
Merchandise description and quantities must match the
pedimento data.
INBONDS
“QP”
Inbonds - Electronic Inbonds
1. Does not have to be presented to CBP when arrived at
Pharr Port
2. It can be arrive electronically thru ABI but the actual
CBP7512 form needs to be presented to Customs at
export.
Manual Inbonds (non-transmitted electronically)
1. Air shipments must be manual inbonds
2. Must be submitted to CBP for arrival
3. IE must be submitted to CBP for processing
Manifest Discrepancy Reporting
(MDR)
A. U.S. Customs Directive 3240-067A
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Outlines method used to report MDR for carrier compliance
MDR filed by any party discovering the cargo discrepancy
Time periods: 60 calendar days for vessels and vehicle carriers, 30
calendar days for air shipments
Carriers arriving with In-Bond Cargo
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Validate the quantities reflected on the CBP7512 provided by the carrier
If a quantify discrepancy is found, then immediately notify the carrier. Do not
sign for the documents unless in-bond CBP7512 is corrected.
Bonded Carriers responsibility to investigate where discrepancy occurred prior to
submitting MDR to CBP for correction.
Amended CBP 7512 must be submitted by bonded carrier or his agent.
Amending the In-bond
CBP 7512
• When the inbond has been accepted by CBP either manually or
electronically any changes are considered an amendment.
• Samples: Pedimento #, Quantities, Value, weight, bridge, etc.
• CBP needs to authorize an amendment, a letter has to be
submitted to CBP, once authorized, make the change and
then re-submit the in-bond again.
Since these are handled
separately then the average registration/cancellation of inbonds, these usually take more then 1 day for processing.
Diversion of In-Bond
• Requested by Consignee or Agent
• Diverted to any port (Not Arrived)
– Prior CBP approval not required
– Secondary Diversion requires new entry
• Splitting merchandise as destination port.
– Entered for Consumption
– Bonded Warehouse or FTZ
– Forwarded under a new in-bond entry
Blue Letter CBP3499
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“Application & Approval to Manipulate, Examine, Sample or Transfer Goods”
It is a blue paper form normally known as a “Blue Letter”
Submitted to CBP by bonded carrier either approve it, deny it or requests
examination.
• Must have approval by CBP before touching the merchandise.
• Must be done at Bonded Carrier’s Facility
What we usually use it for:
• Verify quantity
• Obtain Serial #’s, Model #’s, Manufacture Name
• Labeling (NOM) *Note: Changing Country of origin
label is prohibited by law!
Allowed only in a Bonded Warehouse:
. Repacking of bonded cargo
U.S. Customs Exportation Process
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Mexican Driver should have 3 copies of the In-bond (IE or T&E)) with him/her
at the time of exportation.
Mexican Driver stops at the Export Lot submits In-bonds only if self
dispatched to CBP. If U.S. Broker/Forwarder is involved, driver hands
documents to dispatcher.
CBP will perforate or sign off on the paperwork. Failure to stop will results in
Customs penalties against bonded carrier.
Driver proceeds to Mexico.
In case of CBP Intensive Exam, a Stevedore company will offload
merchandise if requested by CBP.
In-Bond Limits
• In-bond movement to final destination Port
• US Customs notification of arrival at Port
30 Days
2 Days
• IE Time
15 Days
• Entered Freight in GO (General Order)
20 Days
GO
(General Order)
• Merchandise shall be considered general order merchandise
when it is taken into the custody of the port director or a
general order warehouse.
• Withdrawal from General Order for entry or exportation:
6 months
Penalties
• Inbond not move to final
port within 30 days
Penalty & Value of
Merchandise
• CBP not notified of arrival
at final port
Penalty & Value of
Merchandise
• IE not exported within 15 days
Penalty & Value of
Merchandise
Up to bond amount
which the most common
amount is $50,000
Failure to Export Properly
• If a driver failed to stop at the Export Lot = a fine will be
issued.
• A a copy is required of the Pedimento Desaduanizado and if
available any other paperwork that can prove that the
shipment is in Mexico. Proof of arrival at destination,
Mexican Bill of Lading, etc.
• CBP is contacted explain and submit a letter explaining the
situation and wait for a penalty, it is usually issued within the
year and this letter will serve as mitigation to reduce the duty
amount.
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**NOTE: Multiple infractions on any U.S. Customs’ requirements can lead to
the loss of our bond and jeopardize our right to haul or warehouse in-bond
materials for our customers. It also jeopardizes our license as a Broker,
Bonded Warehouse and FTZ.**
Retention Period
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We must keep all records for a period of:
5 years
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In case of an audit, the bonded carrier will be fined.
File consists of:
1. Copy of original in-bond
2. Copy of in-bond which cancelled original in-bond
3. Proof of Exportation – Perforated Copy
QUESTIONS?