The Harmonized Tariff Schedule United States (HTSUS) and Title 19 of the Code of Federal Regulations allow for the temporary import, under bond, of merchandise entering into the United States provided certain conditions are met. These conditions can be found under 19 CFR § 10.31. These types of entries are called Temporary Import Bonds (TIB).
When completing your invoice for a TIB, it is important to remember to include prominent language requesting that the entry is processed as a TIB. In addition to the data usually shown on a regular consumption entry summary, each temporary importation bond entry summary shall include:
- The HTSUS subheading number under which entry is claimed.
- A statement of the use that shows under what TIB provision these goods are entering under
- A declaration that the articles are not to be put to any other use and that they are not imported for sale or sale on approval.
Tariff numbers that begin with 9813 cover the use of a TIB. These tariff numbers aren’t used alone; they 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 U.S. 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 U.S. Customs prior to the expiration date. If the TIB is not closed, your company will be issued liquidated damages. 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 assessment 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.com.