Tariff numbers that begin with 9813 cover the use of a TIB, or temporary import bond. These tariff numbers aren’t used alone; they are what are considered a ‘dual tariff.’ Therefore, the 9813 number is used in conjunction with the regular, Chapter 1-97 tariff number.
This ‘dual tariff’ is used because using a TIB does not completely erase duties and taxes UNLESS the temporary import bond is properly closed with US Customs. In order for the TIB to be closed with US Customs, the whole shipment must be exported or destroyed within one year (up to three years if an extension is approved prior to expiration). Additionally, proof of destruction or export must be furnished to US Customs prior to the expiration date. If the TIB is not closed, your company will be issued liquidate damages in the amount of two times the duty due on the entry. Additionally, once the TIB is processed, it cannot be replaced with a regular, consumption entry.
Therefore, if your company does not have the internal controls to monitor and cancel your temporary importations, this provision may not be right for you. It is important to consider the cost of monitoring and relative duty on the shipment when deciding if a TIB is the right choice.
If you have questions about temporary import bonds, please contact the US Transition Team at 716.260.1580 option 4, or email transitionus@willsonintl.044d949.netsolhost.com.