If you need to transport your goods through the United States, you will almost certainly come across the term “in-bond shipment” or “customs bond.” In this blog post, we will define what in-bond shipment is and what you need to know about it. Furthermore, we will explain who is responsible for opening and canceling bonds when shipping in-bond shipments. 

What are in-bond shipments? 

In-bond shipments are those that are stored or shipped through the United States but do not clear customs because the goods are intended for commercialization in another country, such as Canada. In this case, shipments passing through the US border will be exempt from paying duties, taxes, and other customs-related fees. In-bond shipments must be transported by bonded carriers or stored in bonded warehouses in the U.S. 

A Transportation and Exportation Bond, or T & E, is required if the shipment is transported through two points within the U.S. before being exported to another country.

An Immediate Transportation Bond (IT) is required when the shipment is transported between two points of entry within the customs territory of the United States in order to enter the destination port.

An example of in-bond shipment:

An LTL shipment that departed from Mexico but was transported by land through the U.S. to export the shipment to Canada. 

How does in-bond freight shipping services work? 

When the bonded carrier reaches the border, they can declare the shipment as an in-bond shipment by noting it on their ACI eManifest and providing the officer with a Paper A form. The commodities will then be authorized for transit by Canada Border Services, allowing them to be delivered to a specific bonded warehouse or another CBSA location to await customs clearance. The in-bond carrier must then wait for the Customs Broker to file a formal entry before the items can be withdrawn from the in-bond warehouse and delivered to the consignee. Only a bonded carrier is permitted to use the in-bond shipment process; therefore, choosing the correct freight carrier is crucial when you want to ship across the border. 

What are the differences between in-bond and cross-border transportation?

Costs for in-bond shipment vary based on the size of your freight shipment and its location. In-bond shipment can be time consuming and labor-intensive when compared to cross-border transportation. Here are some distinctions:

  • The freight carrier is unable to clear customs straight at the booth and must park in the customs area rather than proceed to the consignee. 
  • The freight transporter must create an A8A bond and is subject to Customs Office wait delays.
  • Because the trailer is sealed, the freight carrier must report directly to an in-bond warehouse.
  • The in-bond warehouse must unload and segregate the in-bond freight.
  • The freight carrier must resubmit the in-bond data to the customs broker.
  • While awaiting inspection or clearance, in-bond warehouse storage fees may apply.
  • Once released, the freight shipment must be picked up and re-delivered.

How SFI can help 

With over 8 years of freight forwarding experience, we can meet all of your needs for transporting in-bond shipments. We already have a network of in-bond carriers and warehouses in place to provide you with the most cost-effective way to deliver your in-bond shipments. Please contact us if you have any questions about our freight forwarding services.