Skip to content
BorderConnect

Bonded Highway Carrier (Customs Glossary)

Last updated 13 July 2026

On this page
This article is part of the Customs Glossary Guide
A bonded highway carrier docked at a bonded warehouse.

In North American trade, a Bonded Highway Carrier is a transportation company authorized by customs authorities to transport goods under bond between designated locations. A customs bond acts as a financial guarantee that the carrier will comply with customs requirements and that duties, taxes, liquidated damages, or penalties can be recovered if bonded goods are not properly controlled.[1]

Bonded carriers are commonly used when goods must move inland for clearance, transit through a country, move to a bonded warehouse, or move under an in-bond program before final release or export. In Canada, CBSA states that bonded highway carriers are permitted to transport in-bond goods beyond the first port of arrival in Canada and between points in Canada.[2]


How Bonded Carriers Are Used

Scenario Use of a Bonded Highway Carrier
Inland Clearance Goods enter at one port and move under bond to an inland customs office, sufferance warehouse, or bonded warehouse for clearance.
In-Transit Movement Goods move through one country to reach another destination without being entered for consumption in the transit country.
In-Bond Shipment Goods move under bond before duties and taxes are paid or before final customs clearance is completed.
Foreign Trade Zone or Bonded Warehouse Goods move to or from a controlled facility where customs treatment depends on later release, export, or processing.
Temporary Imports or Event Freight Goods move under bond for a temporary purpose, such as a trade show, and are later exported or otherwise accounted for.

U.S. Bonded Carrier Operations

In the United States, bonded carriers may move goods under CBP in-bond procedures. CBP guidance states that bonded carriers are responsible for the carriage and disposition of in-bond shipments, and that bonded carriers can be subject to liquidated damages when merchandise is not properly transported to or delivered at selected CBP destinations.[1]

Common U.S. in-bond movement types include:

Type Description
Immediate Transportation (IT) Goods move from the port of arrival to another U.S. port for entry.
Transportation and Exportation (T&E) Goods move through the United States for export to another country.
Immediate Exportation (IE) Goods are exported from the same port where they arrived.

CBP regulations require the arrival of any portion of an in-bond shipment at the port of exportation to be reported within two business days through a CBP-approved EDI system.[3] In BorderConnect, U.S. in-bond movements are handled through the U.S. In-Bond Manager and related QP in-bond workflows.

Canadian Bonded Carrier Operations

In Canada, bonded highway carriers may move goods beyond the first port of arrival to a sufferance warehouse, bonded warehouse, or other authorized destination before final customs release. CBSA states that bonded highway carriers are permitted to transport in-bond goods beyond the first port of arrival and between points in Canada.[2]

CBSA Memorandum D3-4-2 outlines highway pre-arrival and reporting requirements for the reporting and control of cargo arriving in Canada in the highway mode.[4] Common Canadian documents and references include:

Item Description
A8A Cargo Control Document A cargo control document used for commercial goods moving under customs control.
A8B In-Transit Manifest A manifest used for certain in-transit movements through Canada.
Sub-location or Warehouse Code Identifies the authorized warehouse or location where goods will wait for release.

In BorderConnect, Canadian bonded shipments can be prepared using ACI eManifest shipment types and warehouse or sub-location details when applicable.

Carrier Responsibilities

Bonded carriers must control the movement of bonded goods, maintain required documents, and ensure bonded freight is delivered to the authorized customs destination. CBP advises bonded carriers to retain copies of basic in-bond control documents, protect documents from loss or mutilation, and make sure the driver or representative understands the importance of safely delivering the control forms and shipment to CBP at the destination.[1]

Where required, bonded carriers should also use proper seals or other controls to help ensure the shipment is delivered intact. If a bonded shipment cannot be sealed, CBP guidance describes warning label procedures for packages or items moving under bond.[1]

See also

Official Resources

References

  1. ↑ 1.0 1.1 1.2 1.3 U.S. Customs and Border Protection, Notice to Carriers of Bonded Merchandise.
  2. ↑ 2.0 2.1 Canada Border Services Agency, Highway carriers.
  3. ↑ Legal Information Institute, 19 CFR § 18.7 - Lading for exportation; notice and proof of exportation; verification.
  4. ↑ Canada Border Services Agency, Memorandum D3-4-2: Highway Pre-arrival and Reporting Requirements.
Retrieved from "https://wiki.borderconnect.com/index.php?title=Bonded_Highway_Carrier_(Customs_Glossary)&oldid=2525"