What is a Temporary Importation Bond?

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A Temporary Importation entry, or TIB (which stands for Temporary Importation Bond, a misnomer), is one of several ways goods can be entered into the U.S. When goods are entered in this manner, the importer is declaring to Customs that they are exempt from having to pay duties as the merchandise will be exported out of the country at a later date and not entered into the commerce of the U.S. The importer makes this promise by posting a bond equal to double the duty amount (or 110% of the entered value, depending on the commodity), that would have been paid had this been made under a regular consumption entry. Some examples of when a TIB may be used include trade show items, movie production equipment and demos.

The importer then has a year to export the merchandise but has the option to file for up to 2 one year extensions. The bond requirements may be met by posting a single transaction bond for the specific transaction, or it may be secured by the principal’s continuous Importer bond (assuming they have a sufficient bond on file with Customs). If a single transaction bond is used, our office can issue this the same day we receive the request, provided all underwriting conditions are met.

If your client feels they need this type of bond, please contact our office.