QP In Bond (CBP Shipment Type)

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Disambig1.pngThis article is part of the BorderConnect Shipment Type Guide.
Disambig1.pngThis article is about the U.S. Shipment Type. For the Canadian Shipment Type, see In Bond (Canada).


In Bond shipments may move to a bonded warehouse or continue on for export from the United States

In Bond is a U.S. Shipment Type for goods to clear through CBP. It allows for the inland movement of goods that have not been Customs released.

An In Bond Shipment is required for cargo to move to an inland port to be Customs released, or to transit (pass through) the U.S. destined to another country, or to be immediately exported.

Only bonded carriers are entitled to transport In Bond Shipments. For more information on becoming a bonded carrier see the application form and instructions from CBP here.[1]

Changes to In-Bond Process

On November 27, 2017, U.S. Customs and Border Protection (CBP) published a final rule entitled Changes to the In-Bond Process. The final rule adopted, with several changes, proposed amendments to CBP regulations regarding the in-bond process:

  • On July 2, 2018 paper CBP Form 7512 will no longer be accepted by CBP for input into ACE. Electronic filing of new in-bond transactions will be the responsibility of the trade. Paper forms or other paper alternatives (screen prints or plain paper documents etc.) will be accepted as part of enforcement processes at the border or verification/audit operations such as warehouse withdrawals, FTZ exports and transfers or vessel/aircraft supply operations where additional information is required on paper forms that is not provided for electronically.
  • On February 6, 2019 electronic reporting of all transactions will be mandatory; CBP will no longer accept paper copies of the CBPF 7512 to perform arrival and export functionality. These functions will be the requirement of the carrier. Electronic reporting will be mandatory.
  • Reporting of bonded cargo location (FIRMS code) will be required for Electronic In-Bond Arrivals.[2][3]

Declaring In Bond Shipments in ACE Manifest

In Bond shipments are required to be reported on an ACE Manifest. The method of reporting will depend on the way the bond is being filed.

Acebond2.jpg

By far the most common type of bond filing is the QP In Bond, in which a Customs Broker or other approved ABI filer submits the bond on behalf of the carrier. In this case the bond can be reported on the ACE eManifest simply by creating a PAPS shipment (or "QP In-Bond" in BorderConnect's ACE Manifest software) with the same Shipment Control Number the broker is using for the bond. Please note the broker's shipment control number can be found on the paper copy of the bond, under the "B/L No." field. The example below shows how to report QP In Bond shipments using BorderConnect's ACE Manifest software.

Acebond1.png

The other bond filing method is ACE In Bond, in which the carrier requests the in bond move using their ACE eManifest. For this type of bond no Customs Broker or other 3rd party is involved, the bond is created when the carrier reports the shipment in ACE. For more information on the process of filing ACE In Bonds, please see the guide here.

In the case of a QP In Bond, the carrier will receive a "QP Entry on file" message through ACE once both the manifest and the broker's bond have been filed. In the case of an ACE In Bond, the bond is on file as soon as the ACE eManifest is accepted.

Drivers arriving at the border with an In Bond Shipment will not typically be required to present a paper copy of the bond (i.e. Customs Form 7512) The in-bond movement will be authorized automatically when Customs releases the ACE eManifest.

Once the shipment is authorized to move in-bond, the goods must be reported to CBP as arrived at the destination port within 30 days. Bonds of the type Transportation and Exportation (T & E) must also be reported to CBP as exported within 20 days of arrival at the destination port. In Bond Shipments are considered open from the time that they enter to U.S. until the time that they are reported as arrived and exported. If a bond remains open past these time frames, the carrier can be penalized for an overdue bond. The following messages will be sent to the carrier through ACE regarding overdue bonds and should be addressed immediately if received:

Messages Pertaining to Failure to Arrive Bonds

Bill of Lading Late in 5 Days
Sent to carrier 25 days after the In Bond Shipment enters the United States if the bond has not been reported to CBP as arrived. Carrier must report the bond as arrived within the next 5 days.
Bill of Lading Late
Sent to carrier 30 days after the In Bond Shipment enters the United States if the bond has not been reported to CBP as arrived. Bond is now overdue and carrier may be subject to penalties.

Messages Pertaining to Failure to Export Bonds

Pending Eligible General Order
For Transportation and Exportation type bonds only. Sent to carrier 15 days after the bond has been arrived if an entry or exportation has not been filed. Carrier must ensure that the shipment is or has been exported and relay the information to CBP within the next 5 days.
Ordered to General Order
For Transportation and Exportation type bonds only. Sent to carrier 20 days after the bond has been arrived if an entry or exportation has not been filed. Bond is now overdue and carrier may be subject to penalties.

References

  1. ACE Frequently Asked Questions https://www.cbp.gov/linkhandler/cgov/trade/automated/modernization/ace/ace_faq.ctt/ace_faq.pdf
  2. https://www.cbp.gov/border-security/ports-entry/cargo-control/bond/bond-regulatory-changes-faqs
  3. https://csms.cbp.gov/viewmssg.asp?Recid=23669&page=&srch_argv=18-000466&srchtype=all&btype=&sortby=&sby=