In-bond changes coming November 27th.

There are significant changes coming next week to the in-bond requirement for Customs and Border Protection. We’ve listed them all out below, but the one that we want to call your attention to is this:

In-bond applications will require the six digit Harmonized Tariff Schedule of the United States as a data element.

In-bond refers to the transportation of US Customs sealed goods from one location in a US Customs territory to another. Customs will be amending this process on November 27, 2017.  To ensure carriers and other members of the trade community are ready for the change, Customs added a 90-day flexible enforcement provision and scheduled outreach programs. The amendments enhance Customs ability to monitor in-bond goods movement to ensure proper disposition. Customs simplified the in-bond process requiring carriers to automate their processes and electronically submit data, creating uniformity by standardizing time limits to transit times and reporting functions, and adding clarity to terms by refining the language used,

Electronic Filing Requirement

In-Bond Applications

Elimination of the paper in-bond application (CBP Form 7512) by requiring ocean, truck and air carriers to file the in-bond application electronically.   

Diversion

Diverting in-bond merchandise from its intended destination port to another port requires the carriers electronically request and receive permission from Customs in advance of changing the destination of the in-bond shipment.

Rule Changes

In-Bond Transit Time

All modes of transportation, except pipeline and barge, are being given a 30 day maximum transit time.  Barge shipments are allowed a 60-day maximum.  

Two Day Reporting Requirement

Within two days of entering the port of destination or port of exportation, the arrival and location of the in-bond merchandise must be reported by the carrier.  All provisions in part 18 have a two-day reporting requirement.  

Additional Data Requirements on In-Bond Applications

In-bond applications will require the six-digit Harmonized Tariff Schedule of the United States as a data element.

Reporting Quantity of In Bond Freight

Customs uses language from the regulations on inward manifests and truck pre-advises to require the reporting unit be ‘‘the quantity of the smallest external packing unit.’’  

Divided Shipments

Split shipments are broken out from their previous location in the diversion section into a separate paragraph as an acknowledgment that it happens outside the scope of diversions as well.

Bonded Carrier Definition Changed

Change to the explanation of Bonded Carrier clarifies that the bonded carrier is the one who obligates their bond for the transportation and delivery of merchandise.

Transfers from One Conveyance to Another

Initially called transhipments, Customs changed the term to transfers to add clarity to the section.  Also, carriers are not required to report each time in-bond merchandise changes conveyances.  Reporting is only required when the liability for the merchandise is attributable to a new bond.  

Seals – Transportation of In-Bond Freight with Regular Freight

Customs is removing the requirements to obtain permission to break and replace a seal. Seal replacement recordkeeping requirements are in Section 163.

Other Changes

  • Elimination of the term “ultimate destination” to avoid conflict with export regulations.  
  • A sentence in the section on maximum in-bond transit times will exclude pipeline goods.  
  • Clarity on Customs purview over the granting of extensions to maximum transit times.

 

Ocean Carrier Preparedness

Submitting amended data elements

APL                         NYK

HAMBURGSUD                 CMA

MSC                         ZIM

HAPAGLOYD                     HYUNDAI

Pending amended data elements

COSCO                     PIL

MAERSK                     KLINE

 

If you have any questions or concerns about the upcoming changes, please feel free to reach out to your contact at Edward J Zarach & Associates, Customs Brokers & International Freight Forwarders.