U.S. Customs and Border Protection (CBP) began implementing changes to the in-bond process, as published in a final rule last fall. The rule changes are intended to enhance CBP’s ability to regulate and track in-bond goods and ensure they are properly entered or exported. As found in CBP’s online in-bond FAQ, the following are changes to the regulations:

• “As of July 2nd, CBP Form 7512 will no longer be accepted by CBP for input into ACE. Electronic filing of new in-bond transactions will be the responsibility of the trade. Paper forms or other paper alternatives (screen prints or plain paper documents etc.) will be accepted as part of enforcement processes at the border or verification/audit operations such as warehouse withdrawals, FTZ exports, and transfers or vessel/aircraft supply operations where additional information is required on paper forms that is not provided for electronically.
• August 6, 2018 – Electronic reporting of all transactions will be mandatory; CBP will no longer accept paper copies of the CBPF 7512 to perform arrival and export functionality. These functions will be the requirement of the carrier. In addition, electronic reporting of diversion to a port other than reported on the original in-bond will be required. An ACE edit will reject arrival if not performed. Electronic reporting of bonded cargo location (FIRMS code) will be required. An ACE edit will reject arrival if not provided.
• At this time, no date is set for implementation of the provision requiring the 6-digit Harmonized Tariff Schedule number requirement for Immediate Transportation movements.”

The FAQ describes the in-bond process as: “imported merchandise to be entered at one U.S. port of entry without appraisement or payment of duties and transported by a bonded carrier to another U.S. port of entry or other authorized destination provided all statutory and regulatory conditions are met. At the destination port, the merchandise is entered or exported.”

Additional information can be found in the Federal Register dated September 28, 2017. If you have questions about the in-bond process, please contact Deringer’s Compliance Department.