What is Temporary Importation under Bond (TIB)?

Key Features of TIB

1. Purpose-Specific Importation: TIB is applicable only to goods imported for specific, temporary purposes. These purposes are outlined in 19 CFR 10.31-10.40 and include scenarios such as exhibitions, repairs, testing, prototypes, and manufacturing, among others.

2. Bond Requirement: To utilize TIB, the importer must post a bond with CBP. This bond serves as a financial guarantee that the goods will either be exported or destroyed within the prescribed time frame. If the terms of the TIB are not met, the bond amount, typically equal to twice the duties that would have been owed, may be forfeited.

3. Time Frame for Exportation or Destruction: Goods imported under TIB must be exported or destroyed within one year from the date of importation. However, CBP may grant extensions for up to three additional one-year periods, depending on the circumstances.

4. Non-Transferability: Goods imported under TIB cannot be sold or transferred while in the United States. They must remain in the possession of the importer and used strictly for the purpose stated in the TIB entry.

5. Compliance and Record Keeping: Importers must maintain detailed records of the goods imported under TIB, including their use, location, and ultimate disposition (whether exported or destroyed). Proper documentation is crucial for compliance and for closing out the bond with CBP.

Eligible Goods for TIB

TIBs are permitted for certain categories of goods as outlined in 14 subheadings of the U.S. Harmonized Tariff Schedule. These include:

• Items for Repair, Alteration, or Processing: Goods that need to be repaired, altered, or processed before re-exportation.

• Models for Use as Demonstrations: Women’s models intended for use solely as demonstrations in their specific locale.

• Items for Photographers and Illustrators: Goods used by photographers and illustrators as models in their business or for inclusion in catalogs, pamphlets, or similar advertising materials.

• Samples for Taking Orders: Items brought in exclusively for the purpose of taking orders for goods.

• Items for Reproduction Evaluation: Goods intended solely for examination with a view to reproduction, including those used in movie ads, but excluding photoengraved printing plates.

• Items for Testing, Experimentation, or Review: Articles imported exclusively for testing, experimentation, or review purposes.

• Vehicles and Equipment for Competitions: Cars, airplanes, motorcycles, boats, and similar items brought temporarily into the country by non-residents intending to participate in races or similar contests.

• Emergency Locomotives and Train Equipment: Train equipment temporarily imported for emergency purposes, such as firefighting, clearing obstructions, or repairs.

• Containers for Compressed Gases: Empty or filled containers used for compressed gases or for converting or holding goods.

• Professional and Trade Equipment: Tools of trade, professional equipment, and camping gear brought by non-residents staying temporarily in the U.S.

• Specially Designed Items for Export Production: Articles of special design temporarily imported for use in manufacturing goods intended for export.

• Animals and Livestock for Breeding or Competitions: Animals, livestock, and poultry imported for breeding, exhibition, or prize-earning competitions.

• Works of Art and Scientific Apparatuses: Engravings, photographs, and scientific or philosophical apparatuses brought by foreign artists, scientists, or lecturers for exhibition or related purposes.

• Automobile Chassis and Bodies for Show: Automobile chassis, bodies, or parts thereof imported solely for show and exhibition.

TIB vs. ATA Carnet: Choosing the Right Option

TIBs are not the only duty-free importation option available in the U.S. Another widely used alternative is the ATA Carnet, which might be more suitable depending on the type of goods, their value, and how long they will remain in the country. In some cases, simply paying the applicable duty at the time of import may be the most straightforward solution. If the imported items are duty-free by nature, neither TIBs nor carnets are necessary. Consulting with a logistics company experienced in handling both TIBs and ATA Carnets can help you determine the most appropriate procedure for your specific situation. You can learn more about ATA Carnet here.

Bond Requirement and TIB Duration

When utilizing TIB, the importer must post a bond with CBP, typically equal to twice the duties that would otherwise be due. This bond guarantees that the goods will be re-exported or destroyed within the specified time frame. Once the goods are re-exported, it can take anywhere from three to six months to cancel the bond.

TIBs are initially valid for one year, with the possibility of extensions depending on the circumstances. However, it’s crucial to remember that a TIB does not exempt the importer from complying with other regulatory obligations that may apply, such as those from the USDA, EPA, or other agencies.

Consequences of Non-Compliance

Failure to comply with TIB requirements can result in significant penalties. If the goods are not exported or destroyed within the allowed period, or if they are sold or used for unauthorized purposes, the bond may be forfeited, and additional penalties may be imposed by CBP. This underscores the importance of strict adherence to the terms of the TIB entry.

Do I Need a Customs Broker?

Navigating the complexities of temporary importation requires a customs broker with extensive experience in U.S. Customs regulations and other compliance requirements. Choosing the right partner is crucial to ensure your TIB or alternative importation process is managed efficiently, minimizing risks and avoiding potential delays.