CBP updates in-bond process with rulemaking

U.S. Customs and Border Protection this week has released a bundle of regulatory changes to the nation’s in-bond process for imported goods that will take effect Nov. 27.    U.S. Customs and Border Protection (CBP) this week released a bundle of regulatory changes to the nation’s in-bond process for imported goods that will take effect Nov. 27, according to a notice in the Federal Register.
   Transportation of merchandise in-bond is the movement of imported goods – secured by a bond – from one port to another without the payment of duties. There are three types of in-bond transportation entries: Immediate Transportation (IT), Transportation and Exportation (T&E), and Immediate Exportation (IE).
   CBP first proposed the changes in a notice of proposed rulemaking on Feb. 22, 2012. The agency at the time said the proposed amendments would move in-bond from a paper-based to an automated process and provide better tools for CBP to track in-bond merchandise for security and compliance purposes. The Government Accountability Office highlighted a number of weaknesses within the in-bond system in an April 17, 2007 report. 
   The agency said it received 51 comments from the industry, including  carriers, customs brokers, importers, freight forwarders, foreign trade zone operators, and trade groups, regarding the proposed rulemaking. Eight substantive changes made to CBP’s in-bond regulations include:
     • In-transit time for barged merchandise – an extension to the in-transit time for in-bond merchandise transported by barge to 60 days, while maintaining the proposed 30-day transit time for the other transport modes.
     • Uniform times for reports for arrival, export notices and other actions – CBP has kept the current time of two  working days for bonded carriers to report the arrival of merchandise at the destination or export port.
     • Merchandise description – CBP will require that in-bond merchandise have an accurate as possible description. The agency is also doing away with the former requirement that the in-bond filer identify prohibited or restricted merchandise. In addition, CBP has removed the requirement to provide information about textiles and textile products for all in-bond applications and is eliminating the requirement that the in-bond application filer “must provide” information about merchandise accompanied by a government-issued visa, permit, or license, stating instead that the filer “may provide” this information. CBP will only require the filer to provide the six-digit harmonized tariff number.
     • Merchandise quantity of in-bond merchandise – the agency is changing the text in the final rule to require “the quantity of the smallest external packing unit.”
     • Divided shipments – The current regulations allow an in-bond shipment to be split after the shipment reaches the port of destination with a portion of the shipment entered for consumption or warehouse while the remainder of the shipment is forwarded under a new in-bond to a different port of destination. That provision will basically stand, but moved within the regulations.
     • “Bonded carrier” clarification – A bonded carrier is now defined as a “carrier of merchandise whose bond under §113.63 of this title is obligated for the transportation and delivery of merchandise.” The party that will be ultimately liable is the party whose bond is obligated in the in-bond record for the in-bond movement. 
     • Transfers or transshipment between conveyances – CBP has removed the requirement to notify the agency when merchandise is transferred from one transport conveyance to another. In addition, the agency will require that when in-bond merchandise is taken over by a subsequent bonded carrier which assumes liability for the merchandise, a report of arrival must be filed by the original bonded carrier and the subsequent carrier must submit a new in-bond application for the merchandise to be transported in-bond.
      • Seals – CBP has changed its seal requirements by allowing for the transport of in-bond merchandise with non-bonded goods in a container or compartment that is not sealed, if the in-bond merchandise is corded and sealed, or labeled as in-bond merchandise.