1. In-Bonds (CBP 7512) Mercancia bajo finanza Aduanero

2. 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

3. 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.

4. 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!

5. 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

6. 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.

7. General Information Bonded Carrier Three types of In-bond Entry Types:
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

8. T&E (Transportation & Exportation)
Example - Shipment
moving from Canada
to Pharr, TX
With the T&E the
shipment can be
exported or
cancelled in Pharr
and an IE will be
generated to export
it to Mexico
An I.E. Entry will only be used of the delivery carrier requests that his bond be cancelled. A new in-bond entry created and placed on the exporting carrier’s bond. Note: Many carrier’s do not want their bond used after they have delivered due to risk.

9. In-bond “T&E” Entry originating from Winnipeg Canada entered thru Pembina, ND. Entry is filed “QP” electronically thru Customs via the Automated Broker Interface (ABI)

10. IT (Immediate Transportation)
Example -
A shipment can
be moved from
Canada to Pharr, TX
but can not be
exported, an IE will
have to be
generated to be
able to export it
Many of the bonded carriers want their bond removed from the in-bond movement once they deliver to the port of destination. Another bonded carrier must assume the responsibility by issuing a “I.E.” or “T.&E” to move the cargo into Mexico. Many of the carrier do not want to take the risk because the CBP penalties are extremely brutal.

11. T&E (Transportation & Exportation)
Example –
A shipment can
be moved from
Mexico thru Pharr, TX
to Canada. “QP” In-Bond
Generated Clears CBP-Pharr

12. In-bond movement from Mexico to Winnipeg Canada and exported thru Pembina, ND

13. IE (Immediate Exportation)
This is generated
for a shipment
that is a at a port
ready to be
exported
In-Bond Entry type when a carrier arrives on an “I.T.”. In order to export a “I.E.” In-Bond type must be used. A “T&E” In-bond entry must be used if exporting to another port. Say In-Bond arrives to Pharr but Customer want to export thru Brownsville, then a “T&E” in-bond would be applicable.
Pharr,TX
MEXICO

14. In-Bond from Ontario Canada originally on a “T&E” entry, cancelled carriers bond and placed on “I.E.” entry and placed on another’s bonded carriers bond.

15. 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.

16. INBONDS Manual Inbonds (non-transmitted electronically)
“QP” Inbonds - Electronic Inbonds
Does not have to be presented to CBP when arrived at Pharr Port
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)
Air shipments must be manual inbonds
Must be submitted to CBP for arrival
IE must be submitted to CBP for processing

17. Manifest Discrepancy Reporting (MDR)
A. U.S. Customs Directive A
Outlines method used to report MDR for carrier compliance
MDR filed by any party discovering the cargo discrepancy
Time periods: 60 calendar days for vessels and vehicle carriers, 30 calendar days for air shipments
Carriers arriving with In-Bond Cargo
Validate the quantities reflected on the CBP7512 provided by the carrier
If a quantify discrepancy is found, then immediately notify the carrier. Do not sign for the documents unless in-bond CBP7512 is corrected.
Bonded Carriers responsibility to investigate where discrepancy occurred prior to submitting MDR to CBP for correction.
Amended CBP 7512 must be submitted by bonded carrier or his agent.

18. 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.

19. 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

20. 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 Facility
What 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

22. 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.

23. In-Bond Limits In-bond movement to final destination Port 30 Days
US Customs notification of arrival at Port 2 Days
IE Time Days
Entered Freight in GO (General Order) 20 Days

24. 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

25. Penalties Inbond not move to final Penalty & Value of
port within 30 days Merchandise
CBP not notified of arrival Penalty & Value of
at 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

26. 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 to
the loss of our bond and jeopardize our right to haul or warehouse in-bond
materials for our customers. It also jeopardizes our license as a Broker,
Bonded Warehouse and FTZ.**

27. 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:
Copy of original in-bond
Copy of in-bond which cancelled original in-bond
Proof of Exportation – Perforated Copy

28. QUESTIONS?