BONDED SHIPMENTS
Bonded Shipments: What You Need to Know About Transporting Freight In-Bond
Transporting freight in-bond across the U.S. can be a challenging process, especially without a clear understanding of how it works. If you’re feeling unsure about properly handling bonded shipments, you’re not alone. The complexities of international transportation can be overwhelming.
At ATZ, we understand the challenges associated with bonded transportation. Without a reliable transportation partner, navigating this process can feel daunting. However, with the right knowledge and preparation, you can handle it successfully. With nearly seven decades of experience in the transportation industry, we’ve guided many shippers through similar situations.
In this guide, we’ve outlined the essential aspects of bonded shipping to help you manage this process effectively. Topics include:
- What is a bonded shipment?
- How does bonded shipping work?
- What is a bonded carrier?
- What is a bonded warehouse?
- What documents are needed to ship freight in-bond?
- What types of freight can be shipped in-bond?
Understanding these key points can help you avoid delays, additional costs, and shipment failures. Let’s explore these topics further.
What is a Bonded Shipment?
A bonded shipment refers to cargo that passes through one or more intermediary countries en route to its final destination. Since the goods won’t be consumed or used in the transit countries, customs clearance is delayed until they reach the destination country.
By delaying the payment of taxes, duties, and fees until the final destination, bonded shipping allows businesses to transport goods internationally without incurring duplicate charges. This process is particularly common when freight moves through the U.S. on its way to another country.
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How Does Bonded Shipping Work?
Shipping in-bond is an excellent solution in many scenarios, but it requires proper planning and documentation. To ensure success when shipping in-bond through the U.S., you’ll need to address two key requirements before the shipment leaves the country of export:
1. Secure a bonded carrier and/or warehouse.
2. Complete all necessary documentation.
Securing a Bonded Carrier or Warehouse
To transport cargo in-bond through the U.S., you must arrange transportation with a bonded carrier. If the shipment requires warehousing services during transit, you’ll need to use a bonded warehouse.
A bonded carrier is authorized to move goods across U.S. points of entry without requiring payment of duties or taxes during transit. These carriers often hold international operating authority, allowing them to cross borders and operate in multiple countries.
A bonded warehouse is a secured facility authorized to store goods destined for export. These facilities allow businesses to delay payment of customs duties while the cargo remains in storage.
Required Documentation for Bonded Freight
Transporting bonded freight requires several key documents, including:
- 1. In-bond application
- 2. Customs bond
- 3. CBP Form 7512
- 4. Commercial invoice
- 5. Bill of lading
- 6. Packing list
In-Bond Application
An in-bond application is submitted to U.S. Customs and Border Protection (CBP) through an approved electronic data interchange (EDI). It includes shipment details such as cargo descriptions, Harmonized Tariff Schedule numbers, quantities, and container seals.
Customs Bond
A customs bond is a contract ensuring payment of duties and taxes. This document protects CBP in case of non-payment and is essential for all bonded shipments.
CBP Form 7512
This form outlines the shipment’s route, destination, consignee information, and estimated export dates.
Commercial Invoice, Bill of Lading, and Packing List
These documents provide critical details about the shipment, including the value of goods, transport methods, and itemized cargo information.
Types of Cargo Shipped In-Bond
Most types of cargo can be transported in-bond with the appropriate documentation. This includes containerized freight, open deck shipments, and products moved via roll-on/roll-off or breakbulk methods.
Costs of International Shipping
Shipping bonded cargo doesn’t have to be overwhelming. With the right preparation and support, you can navigate this process with confidence. If you’re wondering about the costs involved, contact us for a detailed estimate tailored to your specific shipment.
For additional insights into international freight rates and calculations, explore our resources or reach out to us directly.