An in-bond shipment moves through the United States, or to a port for export, without paying duty first. The goods travel under a bond, a promise that the duty will be paid when the goods finally enter, or that they will leave the country. The three types are immediate transportation, transportation and exportation, and immediate exportation, and each one has a 30-day limit to close out. It is how goods get from a port in New York to a warehouse in Ohio without clearing customs twice.
The bond is the whole idea
An in-bond shipment is a shipment that has not cleared customs yet. The goods arrived at a US port, and instead of entering there, they move to another port, or to a warehouse, or out of the country, under a bond. The bond is a promise, backed by a surety, that the duty will be paid when the goods enter, or that the goods will leave the country. If neither happens, the surety pays.
The reason this exists is geography. A container that arrives in New York and is headed for a warehouse in Ohio should not have to clear customs in New York and then again in Ohio. In-bond lets it clear once, at the destination, and the bond covers the transit. The goods are in the country, but they are not in commerce yet, and the duty is not due until they are.
Three types, one 30-day clock
There are three types of in-bond entry. Immediate transportation moves goods from the arrival port to another port for entry. Transportation and exportation moves them to another port for export. Immediate exportation sends them straight out of the country from the arrival port. The type is chosen at arrival, and it decides what has to happen at the other end.
All three share a 30-day limit. The bond has to be closed out within 30 days, by entering the goods or exporting them, and the clock runs from the arrival date. After 30 days, the bond is in default, the importer is liable for the duty, and penalties can follow. The 30 days is not a suggestion. It is the term of the bond.
What goes wrong in transit
The most common problem is a bond that does not close. The goods arrive at the destination, the entry is filed, and nobody closes the in-bond entry, so the bond stays open. CBP eventually demands the duty, and the importer pays it on goods that were already entered, because the paperwork never caught up with the cargo.
The second problem is a transfer that is not documented. In-bond goods can be transferred between carriers, or to a bonded warehouse, but each transfer has to be recorded so the chain of custody is clear. A transfer with no record is a gap in the bond, and a gap in the bond is a liability. The fix is a checklist at each handoff: the bond number, the carrier, the date, and the signature. Boring paperwork, and the whole point of the system.
In-bond, FTZ, and bonded warehouse, side by side
In-bond, foreign-trade zones, and bonded warehouses all delay duty, and they are easy to confuse. In-bond delays duty while goods move. A bonded warehouse delays duty while goods are stored, for up to five years, and it cannot manufacture. An FTZ delays duty while goods are stored or manufactured, with no time limit, and it allows the inverted tariff election.
The choice depends on what the goods need. If they need to move, use in-bond. If they need to sit, use a bonded warehouse. If they need to be built into something, use an FTZ. Each one has its own paperwork, its own time limit, and its own audit trail, and using the wrong one is the most expensive way to learn the difference.
Keep reading
Related guides on this site: drawback and getting 99 percent of your duties back on re-exported goods CBP Form 28 vs Form 29, the question and the decision customs audits, the focused assessment, and what triggers one More from Tariff changes caught before they hit your margins.
Frequently asked questions
What is an in-bond shipment?
A shipment that moves through the United States under a customs bond, without paying duty first. The duty is paid when the goods finally enter, or the goods leave the country under the bond.
What are the three types of in-bond entry?
Three types: immediate transportation, to another port for entry; transportation and exportation, to another port for export; and immediate exportation, straight out of the country from the arrival port.
How long do I have to close an in-bond entry?
Thirty days to close out the bond, by entering the goods or exporting them. After 30 days, the bond is in default, and the importer is liable for the duty and any penalties.
Can in-bond goods be transferred between carriers?
Yes, if the goods are transferred to another bonded carrier or a bonded warehouse. The bond follows the goods, and each transfer has to be documented so the chain of custody is clear.