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– 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 theshipment can beexported orcancelled in Pharrand an IE will be generated to exportit to Mexico

IT (Immediate Transportation)

Example -A shipment canbe moved from Canada to Pharr, TXbut can not be exported, an IE willhave to be generated to beable to export it

T&E (Transportation & Exportation)

Example –

A shipment canbe moved from Mexico thru Pharr, TXto Canada. “QP” In-BondGenerated Clears CBP-Pharr

IE (Immediate Exportation)

This is generatedfor a shipment that is a at a portready to be exported

Pharr,TX

MEXICO

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

“QP” Inbonds - Electronic Inbonds

1. Does not have to be presented to CBP when arrived at Pharr Port

2. 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)1. Air shipments must be manual inbonds2. Must be submitted to CBP for arrival3. IE must be submitted to CBP for processing

Manifest Discrepancy Reporting(MDR)

A. U.S. Customs Directive 3240-067A

1. Outlines method used to report MDR for carrier compliance2. MDR filed by any party discovering the cargo discrepancy3. Time periods: 60 calendar days for vessels and vehicle carriers,

30 calendar days for air shipments

B. Carriers arriving with In-Bond Cargo1. Validate the quantities reflected on the CBP7512 provided by the carrier2. If a quantify discrepancy is found, then immediately notify the carrier. Do not

sign for the documents unless in-bond CBP7512 is corrected.3. Bonded Carriers responsibility to investigate where discrepancy occurred prior

to submitting MDR to CBP for correction.4. 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 FacilityWhat 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 ofport within 30 days Merchandise

• CBP not notified of arrival Penalty & Value ofat 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 tothe loss of our bond and jeopardize our right to haul or warehouse in-bondmaterials 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:

1. Copy of original in-bond2. Copy of in-bond which cancelled original in-bond3. Proof of Exportation – Perforated Copy

QUESTIONS?