bonded carrier

A bonded carrier is a freight carrier that has secured a customs bond to transport imported goods that have not yet had duties paid on them. Or in other words- A bonded carrier is a freight company with a permit to transport imported goods without taxes paid. The bonded carrier is authorized to move these goods legally. The bond allows the carrier to transport the bonded merchandise from the port of entry to a bonded warehouse or to the importer’s place of business where the goods await customs clearance. The bond is a promise made to U.S. Customs and Border Protection (CBP). It ensures that the carrier will comply with rules for bonded shipments. The carrier also agrees to pay all required duties and taxes. If the carrier does not follow the bond rules, CBP can claim the bond. This allows them to recover any unpaid duties and penalties. CBP holds bonded shipments until they reach their final destination in the U.S., and duties are paid. Customs entry procedures at the border do not need to be completed to transport the imported goods. The bonded carrier assumes liability for the goods and must keep them sealed and inaccessible during transit. The bonded carrier must ensure the bonded merchandise is delivered to either a CBP-bonded warehouse where it will be stored awaiting customs clearance, or directly to the importer or the importer’s broker, at which point the customs entry is filed, duties are paid, and the goods are officially released.

How to To become a bonded carrier?

To become a bonded carrier, a freight transporter must apply for a customs bond and post the required financial security. The bond application specifies the ports the carrier will operate in, the types of bonded goods they will transport (for example – a transportation and exportation bond is needed to transit goods inland that will be exported from another port later), and other operating details.  

Facilitating international trade

Bonded carriers play a key role in facilitating international trade by allowing importers to transport their goods from the port of entry to the destination where Customs clearance will take place, without having to pay duties and taxes immediately at the border crossing. This gives importers more flexibility in the customs entry process. What types of goods are stored in a bonded warehouse in the United States?

A bonded warehouse is a secure storage facility overseen by U.S. Customs and Border Protection (CBP)

where imported goods can be stored before duties and taxes are paid. Many types of goods may be stored in a bonded warehouse, including:  
  1. Goods waiting for customs clearance: Imported merchandise that hasn’t undergone the formal customs entry process and had duties paid can be stored in a bonded warehouse.
  2. Goods in transit: Known as “in-transit” or “transportation and exportation” (T&E) goods. These are items that enter the U.S. but are destined for another country. They can be held in a bonded warehouse before being exported.
  3. Duty-deferred goods: Importers may choose to defer paying duties on goods until they are needed, and so, they can store them in a bonded warehouse until ready to file an entry and pay duties.
  4. Quota-restricted goods: Items subject to import quotas can be stored in a bonded warehouse until the quota period opens up and they can be brought into U.S. commerce.
  5. High-value items: Expensive goods like jewelry, art, or antiques are often stored in bonded warehouses for security reasons and to defer duties.
  6. Perishable goods: Some bonded warehouses are equipped to store perishables like produce, flowers, or frozen foods until they clear customs.
  7. Alcohol and tobacco products: These heavily regulated and taxed items are frequently stored in bonded warehouses until duties and taxes are paid.
 

Advantage of using a bonded warehouse

The key advantage of using a bonded warehouse is that it allows importers to bring goods into the country without immediately paying duties and taxes, providing cash flow and logistical benefits. At eezyimport.com, while we don’t operate our own bonded warehouses, we help guide importers through the process of customs clearance and duty payment when they are ready to remove their goods from bonded storage. eezyimport provides solutions to make importing easier, including helping to coordinate the use of bonded carriers when needed for our customers’ shipments. While we don’t provide bonded trucking services directly, we can guide importers through the process of customs clearance and paying duties and taxes once the bonded cargo reaches its destination.

To become a US bonded carrier, you need to follow these steps:

  1. Determine Eligibility: Ensure your company meets the requirements set by the US Customs and Border Protection (CBP).
  2. Obtain a Customs Bond: Secure a bond from an approved surety company to cover potential duties and taxes.
  3. Submit Application: Complete and submit CBP Form 301, along with the necessary documentation, to the CBP.
  4. Approval: Wait for the CBP to review and approve your application. Upon approval, you will receive a bonded carrier number.

The requirements to become a US bonded carrier include:

  1. Business Entity: Your company must be a registered business entity.
  2. Customs Bond: You must obtain a customs bond from an approved surety company.
  3. Application Submission: Submit the necessary forms, including CBP Form 301, to the CBP.
  4. Compliance: Adhere to all regulations and requirements set by the CBP, including maintaining accurate records and ensuring the proper handling of bonded goods.

A US bonded carrier transports goods under a customs bond without paying duties and taxes immediately. This allows goods to move between bonded warehouses, ports, and other approved locations while deferring the payment of duties until the goods are officially imported or exported. The bonded carrier ensures compliance with CBP regulations, providing a secure and efficient way to handle goods in transit.

eezyimport is an online platform and is not a licensed customs broker. However, we work closely with a third-party licensed customs broker who can assist with any entry-related issues.

eezyimport is an online platform and is not a licensed customs broker. However, we work closely with a third-party licensed customs broker who can assist with any entry-related issues.

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