In-Bond System: A Comprehensive Guide to Customs Regulations
Definition & Meaning
The in-bond system is a part of the U.S. Customs' Automated Commercial System that manages the movement of merchandise from the time it is unloaded at a port until it is cleared by customs. This system allows goods to be transported or stored without the immediate payment of duties or tariffs, ensuring that they remain "in bond" until customs clearance is completed. The in-bond system tracks the arrivals, departures, and closures of these goods throughout the process.
Legal Use & context
The in-bond system is primarily used in international trade and customs law. It is relevant for businesses involved in importing and exporting goods, as it provides a framework for managing the movement of merchandise without immediate duty payments. Users can often manage related forms and procedures themselves with tools like US Legal Forms, which offers templates for customs documentation and other related legal needs.
Real-world examples
Here are a couple of examples of abatement:
Example 1: A company imports electronics from overseas. The goods arrive at the port, and the company uses the in-bond system to store them until they are ready to be cleared by customs. During this time, they are not subject to duties.
Example 2: A shipping company transports goods in bond to a warehouse in the U.S. The goods remain under customs control until the owner submits the necessary documentation for clearance. (hypothetical example)