On February 22, 2012, U.S. Customs and Border Protection (CBP) issued a notice of proposed rulemaking regarding proposed changes to the in-bond process for imported merchandise. CBP’s proposed rule outlines various changes to the in-bond regulations to enhance CBP's ability to regulate and track in-bond merchandise. The proposed rules would also serve to ensure that in-bond merchandise is properly entered and duties are paid or, alternatively, that the in-bond merchandise is exported.
Under current CBP regulations, the in-bond process allows imported merchandise to be entered at a single U.S. port of entry without appraisal or payment of duties. The merchandise may be subsequently transported by a bonded carrier to another U.S. port of entry provided that all statutory and regulatory conditions are met. At the final destination port, the merchandise is officially entered into the commerce of the United States and duties are paid, or the merchandise is exported.
CBP’s proposed changes would have the following effects:
· Eliminate the paper in-bond application (CBP Form 7512) and require carriers or their agents to electronically file the in-bond application;
· Require additional information on the in-bond application, including the six-digit Harmonized Tariff Schedule number, if available, and other information relevant to the safety and security of the in-bond merchandise;
· Establish a 30-day maximum time to transport in-bond merchandise between United States ports for all modes of transportation except pipeline, and require carriers to electronically request permission from CBP before diverting the in-bond merchandise from its intended destination port to any other port; and
· Require carriers to report the arrival and location of the in-bond merchandise within 24 hours of arrival at the final destination port or the port of export.
CBP has also proposed a restructuring of the in-bond regulations in order to render them more user-friendly and to allow for better tracking of the in-bond process.
For further information or questions regarding CBP’s proposed changes to the in-bond process, contact Glenn Wicks or Ronce Almond at (202) 457-7790.