Trade Compliance

GHY discusses changes to international trade regulations and explores cutting-edge compliance strategies.

U.S. Customs Delays Enforcement of In-Bond Regulatory Changes

Posted January 08, 2018

U.S. Customs and Border Protection recently issued a bulletin announcing that it has extended the implementation and enforcement dates by six months for new regulations concerning the in-bond transportation of goods.

Under a final rule that became effective November 27, 2017, CBP made several major amendments to the in-bond process, including changes that would:

  • Except for merchandise transported by pipeline and truck shipments transiting the United States from Canada, 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 of the United States number.
  • Establish a 30-day maximum transit time to transport in-bond merchandise between U.S. ports, for all modes of transportation except pipeline.
  • Allow for the transport of in-bond merchandise with non-bonded merchandise in a container or compartment that is not sealed, if the in-bond merchandise is corded and sealed, or labeled as in-bond merchandise
  • Require carriers to electronically request and receive permission from CBP before diverting in-bond merchandise from its intended destination port to another port.
  • Require carriers to report the arrival and location of the in-bond merchandise within 24 hours of arrival at the port of destination or port of exportation.

In order to provide the trade with additional time to adjust to the new requirements and in consideration of the business process changes that may be necessary to achieve full compliance, the new implementation schedule has been extended as follows:

Effective July 2, 2018: As of this date, CBP will no longer accept paper 7512s or input the data on the trade’s behalf; instead, electronic filing of new in-bond transactions will be the responsibility of bonded carriers, custom brokers or other authorized agents. However, paper documents will be accepted for enforcement procedures at the border, or for verification or audit of warehouse withdrawals, Foreign Trade Zone exports and transfers, or vessel/aircraft supply operations.

Effective August 6, 2018: As of this, date electronic reporting of all in-bond transactions will be mandatory and CBP will no longer accept paper 7512s to perform arrival and export functionality, which will be the requirement of the carrier. CBP will also require electronic reporting of (a) diversion to a port other than reported on the original in-bond and (b) bonded cargo location.

No enforcement date has yet been set for the mandatory reporting of the six-digit Harmonized Tariff Schedule number, but to avoid delays this information should be provided in all instances to ensure that CBP is able to determine whether the goods are subject to a rule, regulation, law, standard or ban relating to health, safety or conservation.