Bonded Highway Carrier (Customs Glossary)

🔖 This article is part of the Customs Glossary Guide

Bonded Highway Carrier

A transportation provider authorized to move commercial goods inland or through a country without payment of duty at the border.

Type: Trade Participant Region: North America (CBP & CBSA)

Overview

Bonded carriers can move goods inland to a warehouse for clearance, bypassing border congestion.

In the context of North American trade, a Bonded Highway Carrier is a specialized transportation company that has posted financial security (a "bond") with customs authorities (CBP in the U.S. or CBSA in Canada). This bond serves as a guarantee to the government that the carrier will comply with regulations and pay any applicable duties if the goods are unlawfully released.

Unlike non-bonded carriers, who must clear all shipments at the First Port of Arrival (FPOA), bonded carriers have the privilege of moving goods "In-Bond" to an inland location for clearance or transiting through the country entirely.

Carrier Codes:

• Canada (CBSA): Bonded carrier codes typically start with a 2, 3, or 4.
• USA (CBP): Bonded carriers do not have a specific numbering scheme but must maintain an active Activity Code 2 (Custodian of Bonded Merchandise) bond on file.

Why Become a Bonded Carrier?

Becoming a bonded carrier unlocks significant operational flexibility:

Benefit	Description
Inland Clearance	Avoid border congestion by moving goods to an inland Sufferance Warehouse (Canada) or Bonded Warehouse (USA) for clearance closer to the destination.
In-Transit Movements	Use a country as a "land bridge" (e.g., moving goods from Michigan to New York via Ontario, or Vancouver to Toronto via the U.S.) without paying duties to the transit country.
Trusted Trader Eligibility	Bonded status is a mandatory prerequisite for applying to trusted trader programs like C-TPAT, FAST, and CSA.

U.S. Bonded Carrier Operations (CBP)

To operate as a bonded carrier in the United States, a company must file a CBP Form 301 (Customs Bond) with a surety company, typically for a minimum of $25,000.

Common U.S. In-Bond Moves

Bonded carriers file these movements electronically via ACE eManifest:

• IT (Immediate Transportation - Type 61): Moving goods from the arrival port to an inland port for entry.
• T&E (Transportation & Exportation - Type 62): Moving goods through the U.S. to be exported to another country (e.g., Mexico or Canada).
• IE (Immediate Exportation - Type 63): Goods arriving at a U.S. port to be immediately exported from the same port.

Canadian Bonded Carrier Operations (CBSA)

To operate as a bonded carrier in Canada, a company must post a D120 Customs Bond and obtain a bonded carrier code.

Required Documents

• A8A (Cargo Control Document): A paper document with a barcode presented at the border for goods moving inland to a sufferance warehouse.
• A8B (In-Transit Manifest): A specialized manifest for goods moving through Canada (U.S. to U.S.).

Note: If a non-bonded carrier needs to move goods in-bond (e.g., a one-time emergency), they can purchase a Single Trip Bond at the border, though this is costly and time-consuming.

Usage in BorderConnect

BorderConnect software is designed to handle all bonded carrier functions for both ACE and ACI.

For U.S. Shipments (ACE)

Bonded carriers can file QP In-Bonds directly within the software. Users can:

• Select "In-Bond" as the shipment type.
• Assign the IT, T&E, or IE designation.
• Generate the required 7512 document electronic data.

For Canadian Shipments (ACI)

Users can create an ACI eManifest with the "In-Bond" release type:

• Manifest Type: Select "In-Bond" instead of "PARS."
• Sub-Location: Enter the warehouse code (e.g., 5990) where the goods will be waiting for clearance.
• A8A Printing: Generate and print the required A8A Cargo Control Document directly from the manifest for the driver.

Official Resources

• CBP (USA): Notice to Carriers of Bonded Merchandise
• CBSA (Canada): Memorandum D3-4-2: Highway Cargo - Import Movements
• BorderConnect Wiki: How to Become a Bonded U.S. Carrier

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