Bonded Highway Carrier (Customs Glossary)

This article is part of the Customs Glossary Guide

Introduction

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

In the realm of North American trade, a Bonded Highway Carrier is a specialized transportation service provider that holds a customs bond, allowing them to transport goods in-bond between designated locations. These carriers play a crucial role in facilitating the movement of goods across international borders while ensuring compliance with customs regulations and security protocols. This article defines what a Bonded Highway Carrier is in North American trade and explores the scenarios in which these carriers are utilized.

What is a Bonded Highway Carrier?

A Bonded Highway Carrier is a transportation company authorized by customs authorities to transport goods under bond from one customs port or point of entry to another without paying import duties, taxes, or undergoing full customs clearance at the initial entry point. These carriers are required to obtain a customs bond, which serves as a guarantee to the government that they will comply with all customs regulations and fulfill any financial obligations related to the bonded shipments.

Scenarios in Which Bonded Highway Carriers are Used:

Cross-Border Transportation:

Scenario: A company in the United States needs to transport goods to a customer in Canada or Mexico. Usage of Bonded Highway Carrier: To facilitate the movement of goods across international borders, the company employs a Bonded Highway Carrier. The carrier's customs bond ensures the temporary suspension of import duties and taxes until the goods reach their final destination.

Immediate Transportation (IT) and Immediate Exportation (IE):

Scenario: Goods arrive at one U.S. port but need to be transported to another U.S. port for exportation or further processing. Usage of Bonded Highway Carrier: A Bonded Highway Carrier is engaged to transport the goods in-bond from the initial port of arrival to the designated port of exit, where they will be re-exported or further processed.

In-Bond Shipments for Further Processing:

Scenario: A company needs to import raw materials into the United States for manufacturing, with the intention of re-exporting the finished products. Usage of Bonded Highway Carrier: A Bonded Highway Carrier is enlisted to transport the raw materials under bond to the manufacturing facility, where they will be used to produce finished goods for subsequent exportation.

Foreign Trade Zone (FTZ) Operations:

Scenario: A company operates a Foreign Trade Zone, where imported goods can be stored, processed, or assembled before entering the U.S. commerce or being re-exported. Usage of Bonded Highway Carrier: Bonded Highway Carriers are utilized to transport goods from the FTZ to various destinations within the country or back to their country of origin for re-exportation.

Duty Suspension for Temporary Imports:

Scenario: A company participates in a trade show in the United States and temporarily imports products for display and demonstration. Usage of Bonded Highway Carrier: The company employs a Bonded Highway Carrier to transport the products under bond to the trade show venue, with import duties and taxes suspended until the products are re-exported after the event.

Conclusion:

Bonded Highway Carriers are essential participants in North American trade, enabling the seamless movement of goods between different points while adhering to customs regulations and security measures. By holding customs bonds, these carriers play a crucial role in supporting international commerce and ensuring the efficient flow of goods across borders within the region. Their ability to transport goods in-bond provides significant advantages for businesses engaged in cross-border trade and allows for cost-effective and compliant transportation solutions.