In-Bonds (CBP 7512) Mercancia bajo finanza Aduanero

Objectives 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 In-Bond? Transportation Entry (CBP 7512), defined in regulations under19 CFR, Chapter 18. 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: 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 Three types of In-bond Entry Types: 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 An I.E. Entry will only be used of the delivery carrier requests that his bond be cancelled. A new in-bond entry created and placed on the exporting carrier’s bond. Note: Many carrier’s do not want their bond used after they have delivered due to risk.

In-bond “T&E” Entry originating from Winnipeg Canada entered thru Pembina, ND. Entry is filed “QP” electronically thru Customs via the Automated Broker Interface (ABI)

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 Many of the bonded carriers want their bond removed from the in-bond movement once they deliver to the port of destination. Another bonded carrier must assume the responsibility by issuing a “I.E.” or “T.&E” to move the cargo into Mexico. Many of the carrier do not want to take the risk because the CBP penalties are extremely brutal.

T&E (Transportation & Exportation) Example – A shipment can be moved from Mexico thru Pharr, TX to Canada. “QP” In-Bond Generated Clears CBP-Pharr

In-bond movement from Mexico to Winnipeg Canada and exported thru Pembina, ND

IE (Immediate Exportation) This is generated for a shipment that is a at a port ready to be exported In-Bond Entry type when a carrier arrives on an “I.T.”. In order to export a “I.E.” In-Bond type must be used. A “T&E” In-bond entry must be used if exporting to another port. Say In-Bond arrives to Pharr but Customer want to export thru Brownsville, then a “T&E” in-bond would be applicable. Pharr,TX MEXICO

In-Bond from Ontario Canada originally on a “T&E” entry, cancelled carriers bond and placed on “I.E.” entry and placed on another’s bonded carriers bond.

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 Manual Inbonds (non-transmitted electronically) “QP” Inbonds - Electronic Inbonds Does not have to be presented to CBP when arrived at Pharr Port 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) Air shipments must be manual inbonds Must be submitted to CBP for arrival IE must be submitted to CBP for processing

Manifest Discrepancy Reporting (MDR) A. U.S. Customs Directive 3240-067A 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 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 in-bonds, 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 “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 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 30 Days US Customs notification of arrival at Port 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 Penalty & Value of port within 30 days Merchandise CBP not notified of arrival Penalty & Value of at final port 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. **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 We must keep all records for a period of: 5 years In case of an audit, the bonded carrier will be fined. File consists of: Copy of original in-bond Copy of in-bond which cancelled original in-bond Proof of Exportation – Perforated Copy

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