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QP In Bond (CBP Shipment Type)

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🔖 This article is part of the Shipment Release Types Guide

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 move within (or through) the United States under U.S. Customs and Border Protection (CBP) control before the goods are entered for consumption, warehousing, admission to an FTZ, or export. In-bond movements are governed by CBP regulations in 19 CFR Part 18 and allow the inland movement of goods that have not been Customs released. [1]

An In Bond Shipment is used for cargo moving to an inland port for CBP processing/release, transiting the U.S. en route to another country, or moving for exportation from the U.S., depending on the in-bond type (e.g., Immediate Transportation, Transportation & Exportation, Immediate Exportation). [2]

A custodial bond is required to transport merchandise in-bond (posted on CBP Form 301 under the conditions in 19 CFR 113.63). CBP must authorize the in-bond movement, and this movement authorization is transmitted via a CBP-approved EDI system. [3][4]

Only properly bonded parties/carriers may obligate the custodial bond for the in-bond move. For practical guidance on obtaining an International Carrier Bond (via an approved surety using CBP Form 301), see CBP’s official carrier bond help guidance. [5]

Regulatory basis (quick verification)

CBP’s core in-bond timing and reporting obligations are established in regulation:

  • Arrival reporting: The in-bond arrival must be reported to CBP within 2 business days after arrival at the port of destination or port of exportation, using a CBP-approved EDI system. [6]
  • Export reporting: For export movements (including Transportation & Exportation scenarios), exportation/proof-of-export updates must be transmitted via EDI and are subject to the two business day reporting requirement after exportation. [7]
  • Maximum transit time: In-bond merchandise generally must move under a 30-day maximum in-transit timeframe (with different timeframes for certain movements such as barge). [8]
  • Electronic record updates (incl. diversions/changes requiring updates): Updates/amendments to the in-bond record must be made electronically within the regulatory timeframes (typically within 2 business days of the event). [9]

New CBP In-Bond Requirements

CBP issued a final rule updating the in-bond regulations (published September 28, 2017) and later required/enforced electronic reporting for in-bond exports, arrivals, and diversions through ACE. [10][11]

Notable Changes To The In-Bond Process
1. Electronic reporting of in-bond arrival and export is mandatory for covered shipments, and CBP will no longer accept paper copies of CBP Form 7512 for arrival and export functionality (air shipments continue to have specific exemptions as noted by CBP). [12]
2. In-bond arrival must be reported within 2 business days after arrival at the port of destination or port of exportation via a CBP-approved EDI system. [13][14]
3. In-bond exports must be updated/reported within 2 business days after exportation via a CBP-approved EDI system. [15]
4. In-bond record updates (including changes that require updating/amending the in-bond record, such as certain diversions/port changes) must be performed electronically via a CBP-approved EDI system within the regulatory timeframes. [16]
5. A FIRMS code is required as part of the in-bond arrival reporting to identify the facility/location of the merchandise within the port. CBP has also implemented ACE validation that can reject arrival transactions without a valid FIRMS code. [17][18]
6. Carriers have a standard 30-day maximum in-transit time for most modes of transport (with different timeframes for certain movements such as barge). [19]

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.

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.

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. ↑ 19 CFR Part 18 – Transportation in bond and merchandise in transit (eCFR): https://www.ecfr.gov/current/title-19/chapter-I/part-18
  2. ↑ Changes to the In-Bond Process – Final Rule (Federal Register, Sept 28, 2017): https://www.federalregister.gov/documents/2017/09/28/2017-20495/changes-to-the-in-bond-process
  3. ↑ 19 CFR 18.1 (Bond required; movement authorization; EDI requirements): https://www.law.cornell.edu/cfr/text/19/18.1
  4. ↑ CBP Form 301 (Bond) PDF: https://www.cbp.gov/sites/default/files/2024-05/cbp_form_301.pdf
  5. ↑ CBP Help – How to obtain an International Carrier Bond (references CBP Form 301 and surety process): https://www.help.cbp.gov/s/article/Article-1187
  6. ↑ 19 CFR 18.1(j) – Report of arrival within two business days; EDI required: https://www.law.cornell.edu/cfr/text/19/18.1
  7. ↑ 19 CFR 18.24(g) – Proof of exportation / update via EDI: https://www.govinfo.gov/link/cfr/19/18?link-type=pdf&sectionnum=24&year=mostrecent
  8. ↑ 19 CFR 18.1(i) – Maximum in-transit time (30 days; barge 60 days): https://www.law.cornell.edu/cfr/text/19/18.1
  9. ↑ 19 CFR 18.1(h) – Updating and amending the in-bond record via EDI: https://www.law.cornell.edu/cfr/text/19/18.1
  10. ↑ Changes to the In-Bond Process – Final Rule (Federal Register, Sept 28, 2017): https://www.federalregister.gov/documents/2017/09/28/2017-20495/changes-to-the-in-bond-process
  11. ↑ CBP CSMS #38731726 – Electronic Reporting of Exports, Arrivals and Diversions (effective July 29, 2019): https://content.govdelivery.com/accounts/USDHSCBP/bulletins/24effce
  12. ↑ CBP CSMS #38731726 – Electronic Reporting of Exports, Arrivals and Diversions: https://content.govdelivery.com/accounts/USDHSCBP/bulletins/24effce
  13. ↑ 19 CFR 18.1(j) – Report of arrival within two business days; EDI required: https://www.law.cornell.edu/cfr/text/19/18.1
  14. ↑ CBP In-Bond Regulatory Changes FAQs (two business day arrival reporting): https://www.cbp.gov/border-security/ports-entry/cargo-control/bond/bond-regulatory-changes-faqs
  15. ↑ 19 CFR 18.24(g) – Proof of exportation / update within two business days via EDI: https://www.govinfo.gov/link/cfr/19/18?link-type=pdf&sectionnum=24&year=mostrecent
  16. ↑ 19 CFR 18.1(h) – Updating and amending the in-bond record via EDI within two business days of the event: https://www.law.cornell.edu/cfr/text/19/18.1
  17. ↑ 19 CFR 18.1(j) – Arrival reporting must include FIRMS code: https://www.law.cornell.edu/cfr/text/19/18.1
  18. ↑ CBP Trade Information Notice – ACE Validation of FIRMS Codes for In-bond Arrivals (June 20, 2024): https://www.cbp.gov/sites/default/files/2024-06/Trade_Information%20Notice_ACE%20Validation%20of%20FIRMS%20Codes%20for%20In-bond%20Arrivals508.pdf
  19. ↑ 19 CFR 18.1(i) – Maximum in-transit time (30 days; barge 60 days): https://www.law.cornell.edu/cfr/text/19/18.1
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