Transcript Warehouse Entry 3461 Pkg

Temporary Importation Under Bond
(T.I.B. Entries)
Syed Hussain
Entry Specialist CBP
T.I.B. Overview
• A Temporary Importation Under Bond (T.I.B.) is a
temporary importation of goods under bond, not
imported for sale or for sale on approval, without
payment of duty and with the intent to export or
destroy within one year.
• The one year period may be extended upon approval
from CBP for two more periods, not to exceed a total
of 3 years, except that articles imported under
subheading 9813.00.75 shall be admitted under bond
for exportation within 6 months, and shall not be
extended.
T.I.B. Overview - continued
• The first TIB provision enacted in 1869 was limited to
machinery imported for repair. The TIB privileges
have since been expanded to 14 categories of goods
which are described in Chapter 98, Subchapter XIII of
the Harmonized Tariff Schedules of the United States
Annotated (HTSUSA).
• The TIB provisions are designated as subheadings
9813.00.05 through 9813.00.75, HTSUSA.
T.I.B. Overview - continued
• T.I.B. entries are bonded for twice the amount of
duties and fees that would otherwise be owed on the
importation, except for shipments under three
subheadings, which are bonded at 110%, as noted
below.
• Samples used in taking orders (9813.00.20); motion
picture advertising films (9813.00.25); and
professional equipment, tools of trade, and repair
equipment for such components or tools (9813.00.50)
are bonded at 110% of the duties and fees.
• Duty free merchandise is bonded at two times (or
110%) of the merchandise processing fee or $100,
whichever is greater.
The 14 T.I.B. Subheadings
1. 9813.00.05 - Articles to be repaired, altered or processed (including
processes which result in articles manufactured or produced in the
United States)
2. 9813.00.10 - Models of women's wearing apparel imported by
manufacturers for use solely as models in their own establishments
3. 9813.00.15 - Articles imported by illustrators and photographers for use
solely as models in their own establishments, in the illustrating of
catalogues, pamphlets or advertising matters
4. 9813.00.20 - Samples solely for use in taking orders for merchandise
5. 9813.00.25 - Articles solely for examination with a view to reproduction,
or for such examination and reproduction (except photoengraved
printing plates for examination and reproduction); and motion-picture
advertising films
6. 9813.00.30 - Articles intended solely for testing, experimental or review
purposes, including specifications, photographs and similar articles for
use in connection with experiments or for study
7. 9813.00.35 - Automobiles, motorcycles, bicycles, airplanes, airships,
balloons, boats, racing shells and similar vehicles and craft, and the
usual equipment of the foregoing; all the foregoing which are brought
temporarily into the United States by nonresidents for the purpose of
taking part in races or other specific contests
8. 9813.00.40 - Locomotives and other railroad equipment brought
temporarily into the United States for use in clearing obstructions,
fighting fires or making emergency repairs on railroads within the
United States, or for use in transportation otherwise than in
international traffic when the Secretary of the Treasury finds that the
temporary use of foreign railroad equipment is necessary to meet an
emergency
9. 9813.00.45 - Containers for compressed gases, filled or empty, and
containers or other articles in use for covering or holding merchandise
(including personal or household effects) during transportation and
suitable for reuse for that purpose
10. 9813.00.50 - Professional equipment, tools of trade, repair components
for equipment or tools admitted under this heading and camping
equipment; all the foregoing imported by or for nonresidents sojourning
temporarily in the United States and for the use of such nonresidents
11. 9813.00.55 - Articles of special design for temporary use exclusively in
connection with the manufacture or production of articles for export
12. 9813.00.60 - Animals and poultry brought into the United States for the
purpose of breeding, exhibition or competition for prizes, and the usual
equipment therefore
13. 9813.00.70 - Works of the free fine arts, engravings, photographic
pictures and philosophical and scientific apparatus brought into the
United States by professional artists, lecturers or scientists arriving
from abroad for use by them for exhibition and in illustration, promotion
and encouragement of art, science or industry in the United States
14. 9813.00.75 - Automobiles, automobile chassis, automobile bodies,
cutaway portions of any of the foregoing and parts for any of the
foregoing, finished, unfinished or cutaway, when intended solely for
show purposes
Extra Requirement on CBP Form 3461
The CBP Form 3461 must include a statement in block
29 which CBP will annotate to indicate whether an
export examination will be required. Examples are:
“Export Exam Required YES ____ NO ____”
“Designated for Export Exam
Yes
No”
Extra Requirements on CBP Form 7501
The CBP Form 7501 should include:
•
The 9813 subheading number under which entry is
claimed;
•
A statement of use of the articles in sufficient detail to
enable the port director to determine whether the
articles are entitled to entry as claimed;
•
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; and
•
The bond calculation amount.
Time Extensions
• The period of time during which the merchandise
may remain in the United States may be extended for
two periods of 1 year each, or such shorter period as
may be appropriate.
• Extensions may be granted by CBP via an automated
request submitted in ABI, or by the port director via
written application on CBP Form 3173, provided the
articles have not been exported or destroyed, and
liquidated damages have not been assessed.
• Any untimely request for an extension of time for
exportation will be referred to the Office of
International Trade, CBP Headquarters, for
disposition.
Export Examinations
• If, at the time of entry, CBP Form 3461 was
“designated for export examination,” CBP must be
given an opportunity to examine the merchandise
prior to exportation.
• CBP Form 3495 (Application for Exportation of
Articles Under Special Bond), together with a copy of
the T.I.B. entry package, must be filed in advance of
exportation to allow CBP time to schedule the
examination. The applicant will be notified on a copy
of CBP 3495 where the articles are to be sent for the
exam.
Proof of Exportation
• The importer/broker must provide documentary
evidence of exportation, such as an on-board bill of
lading.
• If a bill of lading or AWB with original signature from
the exporting carrier is not used as the supporting
documentation for exportation, CBP will accept
certified copies.
• Certification must be made by the exporter, claimant
or authorized agent, and must state that the bill of
lading or other documentation establishing export is a
“true copy” of the original document.
Proof of Exportation – continued
• Certification in this instance requires that the exporter
or claimant sign and date the document, and include
a statement that the document is a true copy of the
original. The following certification must be used:
“I certify that the bill of lading is a true and correct
copy.”
_____________________
(Name)
_____________________
(Exporter/Claimant/Agent)
Proof of Exportation – continued
• A copy of a bill of lading or AWB that does not show
evidence of execution by each of the parties
(exporting carrier and shipper) cannot be certified as
a true copy of the executed bill of lading.
• If that copy does not (1) reference the carrier’s
records, (2) identify the individuals who executed the
contract, and (3) show the receipt and disposition of
the goods covered by the bill, it is inadequate as
evidence of exportation because it does not contain
the necessary information on the substance of the
transaction.
Proof of Exportation – continued
•
A photocopy or faxed copy originally signed or
originally certified by the exporting carrier or the
exporting carrier’s agent may be used if the claimant
or agent certifies that it is a true and accurate copy.
•
All proof of export, whether originals or certified, must
contain the four data elements below:
1. Fact/Date of Export
2. Intent to Join the Commerce of Another Country
3. Identity of the Exporter
4. Quantity and Description of Merchandise
Exported
Proof of Exportation – continued
•
To avoid paying liquidated damages, the importer
must present proof of exportation to the CBP port
where the T.I.B. entry was filed.
Liquidated Damages
• If an article imported under the T.I.B. provision is not
exported or destroyed properly, either at the port of
entry, or at another port within the period specified, a
breach of the bond occurs.
• The breach subjects the importer to a liability for
liquidated damages equal to two times the estimated
duties and fees applicable to such entry (or 110%, if
appropriate).
Anticipatory Breach
• If the importer notifies CBP prior to expiration of the
period for exportation or destruction that he will not
comply with the terms of the bond, the port director
may declare a breach and assess liquidated
damages in the full amount of the bond.
• Most ports, including the Port of Chicago, also allow
“partial” anticipatory breaches. In these instances,
the liquidated damages amount will be based on the
portion of the merchandise not exported or
destroyed.
NAFTA Duty Deferral
• An importer may be required to file a duty deferral entry
and pay duties in the case of merchandise imported
under subheading 9813.00.05 (articles to be repaired
altered or processed) and subsequently exported to
Canada or Mexico.
• See section 181.53 of the Customs regulations for
details.
Thank You