In Bond Shipment: A Comprehensive Guide to Customs and Trade

Definition & Meaning

An in bond shipment refers to goods that are transported or stored without having cleared customs. These shipments are secured by indemnity bonds, which provide a financial guarantee to the government. In the United States, in bond shipments are typically not intended for entry into U.S. commerce. Instead, they are often moved under specific permits and must be accompanied by relevant documentation, such as a bill of lading and a shipping order.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A company imports machinery from Germany to the U.S. but plans to send it directly to a manufacturing facility in Mexico. The machinery is transported under an in bond shipment, ensuring it does not enter U.S. commerce.

Example 2: A shipment of electronics is sent from Japan to a warehouse in the U.S. for temporary storage before being exported to Canada. This shipment is also classified as in bond.

State-by-state differences

Examples of state differences (not exhaustive):

State In Bond Shipment Regulations
California Strict regulations on storage facilities for in bond shipments.
Texas Allows for easier movement of in bond shipments between states.
Florida Requires additional documentation for in bond shipments entering ports.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Key Differences
Bonded Shipment Goods secured by a bond while awaiting customs clearance. Bonded shipments are typically intended for U.S. commerce, while in bond shipments are not.
Customs Clearance The process of getting goods through customs. In bond shipments have not cleared customs, whereas customs clearance is the final step for entry.

What to do if this term applies to you

If you are involved in an in bond shipment, ensure you have the necessary permits and documentation, including a bill of lading and shipping order. Consider using US Legal Forms to access templates that can help you manage the paperwork involved. If the situation is complex, consulting a legal professional may be beneficial.

Quick facts

  • Typical fees: Varies by shipment and state.
  • Jurisdiction: Governed by federal customs regulations.
  • Possible penalties: Fines for non-compliance with customs regulations.

Key takeaways

Frequently asked questions

An in bond shipment refers to goods transported or stored without customs clearance, secured by indemnity bonds.