Exhibiting In A U.S. Trade Show: Consider A Temporary Import Bond
What Is A Temporary Import Bond?
A Temporary Import Bond (TIB) is a special entry type used when products are imported into the U.S. without the payment of duty or Merchandise Processing Fee (MPF), by posting a bond to ensure that the goods will be exported within a specified time. The TIB amount is usually twice the estimated duty, taxes, etc.
Types Of Shipments Imported Temporarily:
- Trade shows
- Re-export after resale
- Repair or replacement of damaged goods
Temporary Bond Exportation Requirements
Products imported under a TIB can remain in the U.S. without the payment of duty for up to a year. These goods must be properly exported out of the country prior to the expiration date of the bond to avoid a penalty. The one year period for export can be extended upon approval from U.S. Customs. Some TIB provisions allow for the bond period to be extended for three years with the exception of the following TIB provisions:
- Shipments covered under 9813.00.75 (autos and parts for show purposes), may not exceed six months and an extension will not be granted.
- Shipments covered under 9813.00.50 (tools of trade), if seized by Customs for reasons other than by suit of private persons, have the requirement of exportation suspended during the period of seizure.
In order to avoid liquidated damages, the importer of record must present proof of export to U.S. Customs. U.S. Customs accepts the following as proof of export.
- Customs Form 3495 Application for Exportation of Articles Under Special Bond
- Certified copy of the entry that the goods are being imported to (Canadian B3)
- Certified copy of the bill of lading
Relief from liability may also be obtained when goods imported under a TIB are destroyed under Customs supervision. The article must have no commercial value whatsoever if it is to be considered destroyed.
Goods Eligible For TIB Entry
The only goods that qualify for TIB entry are those listed in subheadings 9813.00.05 through 9813.00.75 of the Harmonized Tariff Schedule (HTS).
Common Mistakes Entering TIB
The most common mistakes made when entering goods under a Temporary Import Bond include:
- Failing to indicate on the shipping documentation or notifying your customs broker that the shipment you are sending is a temporary import.
- Failing to properly document and re-export or destroy the articles. When this happens, the bond or security deposit is forfeited and the importer bears the duty and tax expense.