Last week, US Customs proposed significant changes to the agency’s current regulations relating to the in-bond process for imports.
The in-bond process allows imported merchandise to enter a US port without the importer being required to immediately pay duties; the goods are transported by bonded carrier to another US port, at which point duties are paid. Alternatively, the cargo is exported without the need to pay duties. CBP estimates that in-bond shipments represent 30-60% of all imports that move through US ports.
The most notable proposed changes include:
- The elimination of the paper in-bond application (CBP Form 7512) and the new requirement to file the in-bond application electronically.
- The establishment of a 30-day maximum time to transport in-bond merchandise between US ports for all modes of transport (90-day maximum for product moved by pipeline).
- The requirement that carriers electronically request permission before diverting in-bond cargo from its originally intended destination port.
(CustomsNow already offers the ability to file in-bond movements electronically with Customs. A Filer or SCAC code is required and we assist our clients in understanding the process to obtain these codes.)
The agency is accepting public comments to the proposed changes through April 23. The full text of the proposed rule, as well as CBP’s commentary, can be found here.