U.S. Customs and Border Protection published a notice of proposed rulemaking on Feb. 22 that would make substantial changes to the way imported merchandise is transported inland under a bond, enabling the cargo owner to defer payment of duties until it reaches the destination port or is exported.
The primary fixes involve making the in-bond process electronic and tightening up procedures to better track merchandise and prevent diversion. In the past, CBP has had difficulty ensuring that in-bond merchandise is properly entered and duties are paid, or that it is exported.
Goods that travel through U.S. territory and are exported without entering domestic commerce do not require payment of duties.
The proposed rule would require carriers or their agents to file electronic, instead of paper, in-bond applications. The application would also require additional information, including the six-digit Harmonized Tariff Schedule number, if available, and information related to the safety and security of the goods. The rulemaking attempts to establish a 30-day maximum to transport merchandise under bond between U.S. ports for all modes.
Carriers would have to electronically request permission from CBP to divert from the intended destination port to another port. They would also have to report the arrival and location of the merchandise within 24 hours of arrival at the destination port of entry.
CBP has opened the docket for public comments, which must be filed by close of business on April 23. — Eric Kulisch
Changes to U.S. in-bond rules
