Customs Bonded Carrier: Essential Questions To Ask!

 Consider an example where your company imports some goods which are lying at the port. Now you have to pay import duties and taxes on these materials before selling or using them in the local market. This is where the customs bonded carrier comes into play. It can facilitate the flow of your goods by saving your time, money, and effort.

Let’s answer some of the most concerned questions below!

What is a Bonded Carrier?

In simple words, it is a customs authorized carrier that can transport freight through the United States without paying the duty and the customs release while crossing the border. You’ll get clearance by a bond, a permit allowing freight to transit in the US ground.

What exactly is a Bond?

A Customs Bond is a document that helps prove to the United States government that all the taxes, duties, or fines will be paid to the government as soon as they are required. You may apply this form only in loads with a value of over USD 2,500. Plus, you can acquire it in the US Customs and Border Protection (CBP) through a broker acting like an aval licensed by the United States Department of the Treasury. 

In case you need to move the freight between two points inside the US to export it later, you’ll have to have a Transportation and Exportation Bond (T&E). On the other hand, when the cargo is transported between two points inside the US landscape so that it can reach its destination port, you’ll need an Immediate Transportation Bond (IT).

What do you mean by In-bond Shipments?

The freight transiting within the U.S. ground with a particular document allowing it to move and be stored without getting commercialized in that particular country is known as an in-bond shipment. This classification may authorize the bonded carrier to transport the cargo and store it in the U.S. without paying taxes. It is important to remember that bonded carriers can only transport this kind of freight and store it in authorized warehouses to this end.

What is a Bonded Warehouse?

A bonded warehouse is a customs authorized location with a bond allowing it to store merchandise unless the customs release is paid or the cargo has been released. There may be nine different kinds of customs warehouses to the CBP and must deliver their blueprints to be in fulfillment of security measures for preventing accidents. Most exporters prefer a bonded warehouse facility not just for security but also for other benefits. These include:

• They don’t need to pay any duty until the item is released for delivery to the buyer. It also gives complete control of payment to the importer.

• They are allowed to store restricted items.

• Equip facilities to handle different kinds of storage

• You receive a bond on your items.

• They offer additional logistics solutions.

What’s the main difference between a Regular Carrier and a Bonded one?

A regular carrier can release the shipment to the receiving point without a bond which might be the frontier. On the other hand, a bonded carrier might move the freight to an installation away from the frontier. There it will receive the customs release and can be carried through the U.S. territory.

Another benefit for importers and exporters is to join a voluntary supply chain security program, CTPAT (Customs-Trade Partnership Against Terrorism). It is led by U.S. Customs and Border Protection, which focuses on improving the private companies' supply chain security concerning terrorism.  

So, what is the wait for? Get yourself the possible benefits and be the one to boost your bottom line!