Warehouse Entry 3461 Pkg

1
Temporary Importation Under Bond (T.I.B. Entries)
Syed Hussain Entry Specialist CBP
2
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.

3
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.

4
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.

5
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
• 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
• 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
• 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

7

• 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
• 9813.00.55 - Articles of special design for
  temporary use exclusively in connection with the
  manufacture or production of articles for export
• 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
• 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
• 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

8
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
9
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.

10
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.

11
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.

12
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.

13
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)

14
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 carriers
  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.

15
Proof of Exportation continued

• A photocopy or faxed copy originally signed or
  originally certified by the exporting carrier or
  the exporting carriers 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
• Fact/Date of Export
• Intent to Join the Commerce of Another Country
• Identity of the Exporter
• Quantity and Description of Merchandise Exported

16
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.

17
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).

18
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.

19
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.

20
Thank You