In-bond shipments and the reporting of the export and arrival of in-bond shipments have to be sent to CBP electronically. In the past, it was possible to submit a paper copy of the 7512 to CBP and then get the CBP officer to close the in-bond.
What is the In-bond Process?
The in-bond process makes it possible for merchandise to enter the United States through a port of entry without having to pay duties or tax by a bonded carrier to another destination or port of entry in the US, as long as all regulatory and statutory regulations are complied with.
According to the CBP, electronic arrivals and exporting of in-bond shipments enhance the ability of CBP to track and regulate in-bond cargo and ensure that in-bond cargo is properly exported or arrived. To help industry stakeholders understand the in-bond process, CBP provides a technical guidance document. The In-Bond ACE CATAIR In-bond Chapter provides the technical specifications and message formats necessary to transmit data to the CBP’s ABI (Automated Broker Interface) system.
To provide a better understanding of the in-bond regulations, this blog answers some of the frequently asked questions.
CBP In-bond Requirements
- Electronic reporting of exports and in bond arrivals is mandatory – CBP will no longer accept copies of the in-bond 7512 in paper format for export and in-bond arrivals. All reporting must now be conducted through electronic EDI systems approved by the CBP such as the Customs City Global Solutions In-Bond Manager.
- In-bond export and arrival have to be reported no more than two days after the event – Regardless of whether it is an in-bond type 61 (IT- Immediate Transportation), type 62 (TE- Transportation & Exportation) or type 63 (IE- Immediate Exportation)
- Electronic Requests for In-bond Diversions – Carriers will no longer be allowed to make requests to the CBP port asking for diversions. All diversion requests have to be made using the electronic In-Bond Manager. Custom City Global Solutions provides CBP approved QP/WP messages that allow easy electronic diversion requests.
- In-bond arrivals now require a FIRMS code – All arrivals now have to submit a FIRMS code that informs the agency of the arrival of the in-bond shipment. The FIRMS code is the warehouse where the shipment is located and should always be associated with the in-bond destination port (Schedule D)
- 30-day maximum transit time – Carriers have to adhere to a strict thirty-day maximum transit time for all in-bond shipment except for pipeline & barges.
Exceptions Concerning the Elimination of the 7512 Document
With the elimination of the paper 7512 document for in-bond shipments, there are several exceptions to the general rule and hence carriers should produce and use the document just in case it is required. The exceptions for the 7512-document for in-bond shipments include:
- Shipments transported by air
- Differences in requirements at specific CBP Ports
- Requirements for foreign trade movements and bonded warehouses
Given that it is not possible to know when the document may be required, it is recommended to have it alongside every shipment to prevent any complications or delays.
Who is Responsible for Filing the In-Bond Information?
According to the regulations, the in-bond information may be submitted by:
- The carrier or legal agent of the carrier charged with bringing the shipment to the port of origination
- The carrier that is supposed to take possession of the merchandise under the bond for transportation to the port of exportation or the destination port.
- Any legal agent or person that has sufficient interest in the cargo as shown in the manifest, bill of lading, certificate of importing carrier or any other document. The agent may be asked to provide evidence showing satisfactory interest.
Options for Electronic Reporting of In-bond Arrival and Export
Reporting export and in-bond arrival can be done through either of these four options:
- By the use of a CBP approved QP/WP program – Customs City Global Solutions has an In-bond Manager approved by the CBP to make it possible for carriers to file their export and arrive in-bonds.
- Using a customs broker agent to file the export and arrival in-bonds – Any person with access to a QP/WP system may file the in-bond export and arrival on behalf of the carrier as long as they can prove that they have legal authorization to do so.
- Using the ACE Portal – Carriers that have access to an ACE Portal account may use the export and arrival in-bond functionality.
The Five (5) Message Statuses of an In-Bond during the In-bond Process;
- On File: The in-bond will have this designation immediately after it is created but before the consignment enters the States.
- Enroute: An enroute designation is given to s shipment upon initial entry into the United States. It can also be given immediately after the creation of the in-bond if it is for a foreign trade zone withdrawal or a bonded warehouse. The designation usually means that the in-bond movement from the port of origination to the destination port has kicked off. According to regulations, these in-bond shipments need to be at their destination in no more than 30 days or else they will be declared overdue.
- Arrived: An in-bond will be designated as arrived once it reached the destination port in the United States and its arrival reported to the Customs & Border Protection (CBP) Agency electronically. Such a designation will typically complete the in-bond process for Immediate Transportation (type 61) type in-bonds as after this they will typically be deemed “closed.”
- Exported: Goods that have left the US are designated as exported once they have been reported as such to the CBP through electronic means. They could also be deemed exported when the shipment is in a location in which export is reasonably certain. For instance, goods at an airport, seaport or rail location and under a carrier charged with exporting them. This designation signifies the end of the in-bond process for type 62 (Transportation & Exportation) and type 63 (Immediate Export) which will then be deemed “closed.”
- Concluded: In some situations, the in-bond will be concluded by the filing of a succeeding bond. In such an instance, the in-bond will show as “arrived.” Once a succeeding in-bond is filed, the previous one will be designated as “Concluded” given that the liability will transfer from the old to the new in-bond and in doing so complete the in-bond process. The initial in-bond will then be deemed “closed.”
Why Customs City Global Solutions Inc.?
Customs City Global Solutions provides solutions to ensure compliance with CBP in-bond requirements including electronic reporting of diversion, export and in-bond arrival. With our In-Bond Status Query, you get in-bond details from the CBP and have the ability to confirm that in-bonds were successfully filed with the CBP.
How to Sign Up For Customs City’s U.S. In-Bond Manager
To use the Customs City In-Bond Manager, carriers will need to get a filer code from the CBP. Customs City Global Solutions works with carriers to help craft a CBP Letter of Intent (LOI) that is then submitted to the CBP. The agency will issue a filer code that will make it possible to use the electronic systems at Customs City Global Solutions to file in-bond submissions.