An in-bond shipment is cargo that moves under the control of customs authorities without immediate payment of duties or taxes. The goods remain in bond, meaning they are not yet entered into the domestic economy and are transported or stored under a financial bond that guarantees compliance with customs regulations.
In-bond shipments are used to:
- Move cargo under customs control to another port of entry for customs clearance and release.
- Deliver cargo under bond to a bonded warehouse or Foreign-Trade Zone (FTZ) for storage or permitted handling before entry.
- Transit goods through a country en route to an export destination.
- Export goods directly from the arrival port without formal entry into the local market.
The movement must be conducted by a bonded carrier or other authorized party, and the shipment must follow the timelines, routing, and reporting requirements set by the customs authority. Until the cargo is officially entered, admitted to a bonded facility or Foreign-Trade Zone, or re-exported, it remains under customs supervision.
Importers and logistics providers use the in-bond process to control costs by deferring duty payments, to choose optimal clearance locations, and to move freight efficiently through congested gateways. This process ensures that control and accountability are maintained until the shipment reaches its final customs-approved status.
Frequently Asked Questions
The following are some of the most frequently asked questions regarding in-bond shipments in the context of international shipping, import operations, and freight forwarding.
What Is an In-Bond Shipment in U.S. Customs?
An in-bond shipment in U.S. Customs is cargo moving under customs control without immediate payment of duties or taxes. This allows goods to transit, be stored, or be moved to another port while remaining outside the U.S. market. It helps importers defer duty payments and manage logistics efficiently.
What Is the Difference Between IT, T&E, and IE In-Bond Shipments?
U.S. Customs and Border Protection (CBP) allows three ways to move shipments under the in-bond process, each with a distinct purpose and entry code:
- Immediate Transportation (IT, Type 61): Moves merchandise from the first U.S. place of arrival to another U.S. port of entry where the importer will file entry and obtain release.
- Transportation and Exportation (T&E, Type 62): Moves merchandise across the United States for export from a different U.S. port without entering U.S. commerce or paying duties.
- Immediate Exportation (IE, Type 63): Exports merchandise directly from the U.S. port where it arrived, without formal entry.
Key compliance rules apply to all three: for most modes, usually the maximum in-transit time is 30 calendar days (barge: 60 days; pipelines have separate rules). CBP may grant an extension on written request to the port director of the destination or export port, at CBP’s discretion. Arrival at destination or export must be reported electronically within two business days via ACE or QP/WP. The in-bond is closed when the goods are entered, exported, or admitted to a Foreign-Trade Zone.
Do I Need CBP Form 7512 for In-Bond Shipments, and What Information Is Required?
In-bond shipments were once documented entirely with paper CBP Form 7512. Today, U.S. Customs and Border Protection (CBP) requires most in-bond applications to be filed electronically through the Automated Commercial Environment (ACE) or the QP/WP system. Paper copies of Form 7512 are still used in limited cases such as bonded warehouse withdrawals, Foreign-Trade Zone exports, or audit requirements where CBP requests a permit copy.
Whether filed electronically or on paper for special cases, the in-bond application must include specific details about the shipment. These typically include:
- Bill of lading or air waybill number
- Port of origin and port of destination
- In-bond type (IT, T&E, or IE)
- Carrier information and bond number
- Quantity of goods by smallest exterior packing unit
- Description of the merchandise
- Six-digit Harmonized Tariff Schedule number
This information allows CBP to track bonded cargo accurately, enforce transit time limits, and ensure the goods are properly entered, exported, or admitted to a bonded facility or Foreign-Trade Zone within the required timeframe.
What Is a Bonded Carrier?
A bonded carrier is a transportation provider approved by U.S. Customs and Border Protection (CBP) to move shipments that have not yet been formally entered or had duties paid. Using a bonded carrier allows importers to move cargo under customs supervision to its intended location without immediate payment of duties or taxes.
Bonded carriers operate under strict CBP requirements and must meet specific obligations to maintain their status. For importers, this means goods in bond remain secure and compliant throughout transit. The carrier is responsible for ensuring the shipment reaches the authorized destination and is properly reported to CBP.
By working with a bonded carrier, businesses can route cargo efficiently, defer duty payments, and manage imports strategically, while ensuring compliance with customs regulations.
What Are the Penalties for In-Bond Shipment Violations?
In-bond shipments are subject to strict oversight by the U.S. Customs and Border Protection, and failure to comply with requirements can result in penalties or liquidated damages against the bond. These risks apply to importers, carriers, or other parties responsible for the bonded movement.
Common violations include:
- Late or Expired Movements: Exceeding the 30-day (or 60-day for barge) transit limit without an approved extension.
- Failure to Report Arrival or Export: Not filing the required electronic arrival or export within two business days.
- Misdelivery or Diversion Without Approval: Delivering cargo to an unauthorized location or changing the destination without CBP authorization.
- Shortages or Overages: Discrepancies between the in-bond manifest and the actual cargo delivered.
CBP may assess liquidated damages against the bond in amounts that can reach up to the value of the merchandise, depending on the violation. In addition, monetary penalties may be imposed, and repeat or serious violations can lead to suspension of the carrier’s bonded status. Maintaining accurate filings, meeting deadlines, and using trusted bonded carriers are essential for avoiding penalties and ensuring smooth in-bond operations.
How Are In-Bond Shipments Sealed and Monitored During Transit?
In-bond shipments are secured with customs-approved seals so that the cargo cannot be accessed while under the supervision of the CBP. The seal numbers are recorded in the in-bond filing, and the carrier is responsible for keeping them intact until the shipment arrives at its approved destination.
If a seal needs to be removed, such as when transferring the cargo to another truck or container, it must be replaced immediately and the new seal information reported to CBP. Officers may check seals upon arrival to confirm the shipment has not been altered. Missing, broken, or unreported seals can lead to penalties, since seals are the main safeguard ensuring accountability during in-bond movements.
Can In-Bond Shipments Be Stored Temporarily Before Final Entry or Export?
Yes, in-bond shipments can be stored temporarily in a bonded warehouse or in a Foreign-Trade Zone before final customs entry or export. In a bonded warehouse, goods can be stored for up to five years without paying duties, allowing importers to defer costs or manipulate goods (e.g., repackaging) under CBP supervision. In an FTZ, goods can be stored, manipulated, or even manufactured without entering U.S. commerce, with duties paid only upon entry or avoided if re-exported. The in-bond application (e.g., IT or T&E) must specify the bonded facility as the destination, and CBP must be notified of the shipment’s arrival within two business days.
Can In-Bond Shipments Be Part of Less-Than-Container Load (LCL) Cargo?
Yes. LCL, or Less-than-Container Load, means cargo from multiple shippers is combined in one container. When that container arrives at a U.S. port, it is delivered to a Container Freight Station (CFS) for deconsolidation. At that point, each individual shipment is separated. Some shipments may clear customs at the port of arrival, while others may be moved under bond to another port, a bonded warehouse, or to a Foreign-Trade Zone.
This process allows smaller shipments within an LCL container to take advantage of in-bond procedures while remaining under customs supervision until they are properly entered or exported.