Bonds are a good way to have something enter a country temporarily and not have to pay customs charges when it enters the country or when it returns to the origin country. Shipping something under a bond is technically referred to as Temporary Importation Under Bond (TIB). The most common reason for a TIB is a repair and return shipment, testing and calibration or trans-shipments (just passing through a customs territory “Enter Immediate Export”).
The decision to do a TIB shipment and the responsibility to comply with customs regulations always belongs to the Importer of Record (the party receiving the item temporarily). The main reason why an IOR may want to do an entry as TIB is to avoid paying duty and/or tax on what they are receiving. Most countries allow TIB, and they have a period of time which the commodity can remain under bond without paying duties or taxes. In the US, for example, a TIB is good for one year from the date of issue.
Customs expects the bond to be closed out before or by the expiration date, either because it left the customs territory or it was consumed within that country and therefore means that duties and taxes need to be paid. The IOR may be able to renew the TIB. In the US, this can only be done for an additional year.
So if you are sending something temporarily that will be returning and the receiver wants it to be TIB, they need to get that all set up before you actually make the shipment. It is up to them to handle all of that, and you just ship it and then receive it again at the end as you would any other shipment (they may give you some instructions or paperwork to include with the shipment).
But let’s say you are the receiver of something you’re only handling temporarily before returning it back and you decide you want it to be TIB. To setup the TIB entry type with DHL Express, you (the U.S. IOR) must submit two documents (TIB Authorization and TIB Letter of Intention) to Preferred Shipping Customer Service at customerservice@preferredship.com for processing with DHL Express. Please note that this is only if you are a customer of Preferred Shipping that we offer this service. When the setup is complete, you will be ready to import as TIB.
When the shipper is ready to make a shipment that will enter as TIB, have the shipper make the waybill however they want. Make sure they know to have the customs Invoice indicate that the shipment is a Temporary Import. The invoice must also state that the goods are being “imported under Temporary Bond (TIB).” They can put this in the line-item description so that customs see it.
Shipments imported into the U.S. under TIB must be exported no longer than a year from the date of import. When the shipment is ready to be exported from the U.S., the TIB entry with U.S. Customs must be closed to avoid duty and fines. If you are a customer of Preferred Shipping, we can help you with that.
Make the DHL waybill for the shipment as you normally would. In the description field, add “Inbond CF7512.” For example, if you were exporting shoes, you would put “Shoes – Inbond CF7512” in the description field.
Send the waybill to customerservice@preferredship.com. There are some things that need to be done with DHL before the shipment goes out, so we will do those things for you. Be aware this means you need to make the waybill with a ship date set a few days in the future. Also, do not schedule the pickup at this time.
When everything is set, we will send you a completed CF7512 form. You can then schedule the pickup. Make sure the CF7512 form is with the shipment along with the waybill and the Commercial Invoice.
Doing all of this will ensure the bond is properly closed out with customs. If you export the shipment with another carrier, you will be responsible for doing what is needed to close out the TIB with U.S. Customs. Here is a link to a U.S. Customs website for more information on TIB: https://www.cbp.gov/trade/programs-administration/entry-summary-and-post-release-processes/temporary-importation-under-bond.
If you are not a customer of Preferred Shipping, you need to work directly with the carrier you are using.
