When cargo enters the United States but is not being immediately cleared through customs at the port of arrival, it moves under what is called an in-bond shipment. Understanding in-bond transportation is essential for carriers operating between the US and Canada, because it determines how, when, and where goods are formally entered into commerce. This guide covers the types of in-bond movements, when they are required, and what carriers need to know to stay compliant.
What Is an In-Bond Shipment?
An in-bond shipment allows goods to be transported within the United States from one port to another without formal customs entry at the first port. The cargo travels "in bond" -- meaning it is under a customs bond guaranteeing that it will reach its destination and be properly entered or exported.
US Customs and Border Protection (CBP) authorizes in-bond movements so that importers and carriers have flexibility in where goods are cleared. For example, a shipment might cross the border at Buffalo, NY, but the importer's customs broker is in Chicago. Rather than clearing customs in Buffalo, the cargo can move in-bond to Chicago and be formally entered there.
Types of In-Bond Movements
CBP recognizes three types of in-bond entries, each serving a different purpose:
Immediate Transportation (IT)
This is the most common type. An IT bond allows goods to move from the port of arrival to another inland US port where they will be formally entered. The cargo is not cleared at the border -- it simply passes through and travels under bond to its destination port.
Example: A shipment crosses from Canada at Port Huron, MI, and travels in-bond to Detroit, MI, where the customs broker files the formal entry.
Immediate Exportation (IE)
An IE bond is used when goods arrive in the US but are destined for export to a third country. The cargo moves from the arrival port to an exit port without ever being entered into US commerce.
Example: Goods arrive from Canada at Champlain, NY, and move in-bond to Newark, NJ, where they are loaded onto a vessel bound for Europe.
Transportation and Exportation (T&E)
A T&E bond combines elements of both IT and IE. Goods arrive at a US port, move in-bond through the US, and exit through a different port for export. This is often used for shipments transiting through the US to reach Mexico or an overseas destination.
Example: Cargo enters from Canada at Blaine, WA, transits through the US, and exits at Laredo, TX, bound for Mexico.
When Is In-Bond Transportation Needed?
In-bond movements are required or beneficial in several scenarios:
- The importer wants to clear customs at an inland port closer to their warehouse or distribution center
- Goods are transiting through the US to a final destination in another country
- The shipment requires inspection or examination at a specific CBP facility that is not at the border port
- Foreign Trade Zone (FTZ) deliveries -- goods moving to an FTZ often travel in-bond
- Consolidated shipments where different portions of the cargo will be entered at different ports
For US-Canada carriers, the most common scenario is an IT bond where the border crossing port is simply the point of entry and the formal customs clearance happens at an inland destination.
In-Bond Filing Requirements
Since 2020, CBP requires all in-bond movements to be filed electronically through the ACE system. The key requirements include:
- Electronic filing -- the in-bond entry must be transmitted through ACE before the cargo moves
- Bond coverage -- the carrier or the importer must have a valid customs bond that covers the value of the goods
- Timely arrival -- goods must arrive at the destination port within the timeframe specified on the in-bond entry (typically 30 days for IT entries)
- Reporting arrival -- the carrier must report the arrival of the in-bond cargo at the destination port through ACE
- Export confirmation -- for IE and T&E bonds, the carrier must confirm the goods have been exported
Failure to comply with in-bond requirements can result in liquidated damages claims against the bond, which can be financially significant. If cargo under an in-bond entry goes missing or is not properly reported as arrived, the bond surety is liable for the duties, taxes, and penalties.
Common In-Bond Challenges for Cross-Border Carriers
- Missed reporting deadlines -- forgetting to file an arrival notice at the destination port is one of the most frequent violations
- Bond sufficiency -- if your bond does not cover the value of the goods, CBP can deny the in-bond movement
- Diversion without authorization -- if the cargo needs to go to a different destination than originally filed, an amendment must be submitted before the diversion occurs
- Confusion with PAPS entries -- in-bond shipments and standard PAPS entries have different filing processes and requirements; mixing them up causes delays
How TruckerPro Border Handles In-Bond Filings
In-bond movements add a layer of complexity to an already detailed border crossing process. TruckerPro Border supports in-bond filing as part of your eManifest workflow, so you can manage IT, IE, and T&E entries alongside your standard ACE filings. Arrival reporting, bond tracking, and deadline alerts are all built in, reducing the risk of missed filings and penalty assessments. Simplify your in-bond process at [border.truckerpro.ca](https://border.truckerpro.ca).