Syed Hussain Entry Specialist CBP Temporary Importation Under Bond (T.I.B. Entries)

T.I.B. Overview A Temporary Importation Under Bond (T.I.B.) is a temporary importation of goods under bond, not imported for sale or for sale on approval, without payment of duty and with the intent to export or destroy within one year. The one year period may be extended upon approval from CBP for two more periods, not to exceed a total of 3 years, except that articles imported under subheading shall be admitted under bond for exportation within 6 months, and shall not be extended.

The first TIB provision enacted in 1869 was limited to machinery imported for repair. The TIB privileges have since been expanded to 14 categories of goods which are described in Chapter 98, Subchapter XIII of the Harmonized Tariff Schedules of the United States Annotated (HTSUSA). The TIB provisions are designated as subheadings through , HTSUSA. T.I.B. Overview - continued

T.I.B. entries are bonded for twice the amount of duties and fees that would otherwise be owed on the importation, except for shipments under three subheadings, which are bonded at 110%, as noted below. Samples used in taking orders ( ); motion picture advertising films ( ); and professional equipment, tools of trade, and repair equipment for such components or tools ( ) are bonded at 110% of the duties and fees. Duty free merchandise is bonded at two times (or 110%) of the merchandise processing fee or $100, whichever is greater. T.I.B. Overview - continued

The 14 T.I.B. Subheadings Articles to be repaired, altered or processed (including processes which result in articles manufactured or produced in the United States) Models of women's wearing apparel imported by manufacturers for use solely as models in their own establishments Articles imported by illustrators and photographers for use solely as models in their own establishments, in the illustrating of catalogues, pamphlets or advertising matters Samples solely for use in taking orders for merchandise Articles solely for examination with a view to reproduction, or for such examination and reproduction (except photoengraved printing plates for examination and reproduction); and motion-picture advertising films

Articles intended solely for testing, experimental or review purposes, including specifications, photographs and similar articles for use in connection with experiments or for study Automobiles, motorcycles, bicycles, airplanes, airships, balloons, boats, racing shells and similar vehicles and craft, and the usual equipment of the foregoing; all the foregoing which are brought temporarily into the United States by nonresidents for the purpose of taking part in races or other specific contests Locomotives and other railroad equipment brought temporarily into the United States for use in clearing obstructions, fighting fires or making emergency repairs on railroads within the United States, or for use in transportation otherwise than in international traffic when the Secretary of the Treasury finds that the temporary use of foreign railroad equipment is necessary to meet an emergency Containers for compressed gases, filled or empty, and containers or other articles in use for covering or holding merchandise (including personal or household effects) during transportation and suitable for reuse for that purpose

Professional equipment, tools of trade, repair components for equipment or tools admitted under this heading and camping equipment; all the foregoing imported by or for nonresidents sojourning temporarily in the United States and for the use of such nonresidents Articles of special design for temporary use exclusively in connection with the manufacture or production of articles for export Animals and poultry brought into the United States for the purpose of breeding, exhibition or competition for prizes, and the usual equipment therefore Works of the free fine arts, engravings, photographic pictures and philosophical and scientific apparatus brought into the United States by professional artists, lecturers or scientists arriving from abroad for use by them for exhibition and in illustration, promotion and encouragement of art, science or industry in the United States Automobiles, automobile chassis, automobile bodies, cutaway portions of any of the foregoing and parts for any of the foregoing, finished, unfinished or cutaway, when intended solely for show purposes

Extra Requirement on CBP Form 3461 The CBP Form 3461 must include a statement in block 29 which CBP will annotate to indicate whether an export examination will be required. Examples are: “Export Exam Required YES ____ NO ____” “Designated for Export Exam Yes No”

Extra Requirements on CBP Form 7501 The CBP Form 7501 should include: The 9813 subheading number under which entry is claimed; A statement of use of the articles in sufficient detail to enable the port director to determine whether the articles are entitled to entry as claimed; A declaration that the articles are not to be put to any other use, and that they are not imported for sale or sale on approval; and The bond calculation amount.

Time Extensions The period of time during which the merchandise may remain in the United States may be extended for two periods of 1 year each, or such shorter period as may be appropriate. Extensions may be granted by CBP via an automated request submitted in ABI, or by the port director via written application on CBP Form 3173, provided the articles have not been exported or destroyed, and liquidated damages have not been assessed. Any untimely request for an extension of time for exportation will be referred to the Office of International Trade, CBP Headquarters, for disposition.

Export Examinations If, at the time of entry, CBP Form 3461 was “designated for export examination,” CBP must be given an opportunity to examine the merchandise prior to exportation. CBP Form 3495 (Application for Exportation of Articles Under Special Bond), together with a copy of the T.I.B. entry package, must be filed in advance of exportation to allow CBP time to schedule the examination. The applicant will be notified on a copy of CBP 3495 where the articles are to be sent for the exam.

Proof of Exportation The importer/broker must provide documentary evidence of exportation, such as an on-board bill of lading. If a bill of lading or AWB with original signature from the exporting carrier is not used as the supporting documentation for exportation, CBP will accept certified copies. Certification must be made by the exporter, claimant or authorized agent, and must state that the bill of lading or other documentation establishing export is a “true copy” of the original document.

Proof of Exportation – continued Certification in this instance requires that the exporter or claimant sign and date the document, and include a statement that the document is a true copy of the original. The following certification must be used: “I certify that the bill of lading is a true and correct copy.” _____________________ (Name) _____________________ (Exporter/Claimant/Agent)

Proof of Exportation – continued A copy of a bill of lading or AWB that does not show evidence of execution by each of the parties (exporting carrier and shipper) cannot be certified as a true copy of the executed bill of lading. If that copy does not (1) reference the carrier’s records, (2) identify the individuals who executed the contract, and (3) show the receipt and disposition of the goods covered by the bill, it is inadequate as evidence of exportation because it does not contain the necessary information on the substance of the transaction.

Proof of Exportation – continued A photocopy or faxed copy originally signed or originally certified by the exporting carrier or the exporting carrier’s agent may be used if the claimant or agent certifies that it is a true and accurate copy. All proof of export, whether originals or certified, must contain the four data elements below: 1.Fact/Date of Export 2.Intent to Join the Commerce of Another Country 3.Identity of the Exporter 4.Quantity and Description of Merchandise Exported

Proof of Exportation – continued To avoid paying liquidated damages, the importer must present proof of exportation to the CBP port where the T.I.B. entry was filed.

Liquidated Damages If an article imported under the T.I.B. provision is not exported or destroyed properly, either at the port of entry, or at another port within the period specified, a breach of the bond occurs. The breach subjects the importer to a liability for liquidated damages equal to two times the estimated duties and fees applicable to such entry (or 110%, if appropriate).

Anticipatory Breach If the importer notifies CBP prior to expiration of the period for exportation or destruction that he will not comply with the terms of the bond, the port director may declare a breach and assess liquidated damages in the full amount of the bond. Most ports, including the Port of Chicago, also allow “partial” anticipatory breaches. In these instances, the liquidated damages amount will be based on the portion of the merchandise not exported or destroyed.

NAFTA Duty Deferral An importer may be required to file a duty deferral entry and pay duties in the case of merchandise imported under subheading (articles to be repaired altered or processed) and subsequently exported to Canada or Mexico. See section of the Customs regulations for details.

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