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Transportation and Exportation or Immediate Transportation… What’s The Difference?
There are many mechanisms that can be utilized to benefit a supply chain and shipping costs. Two options are Transportation and Exportation Bonds (T&E) and Immediate Transportation Bonds (IT). However, it is important to know the difference between the two bonds because there can often be confusion about which bond should be used, creating a problem for most carries. For example, a carrier might decide to use a T&E bond when they should have used an IT bond. This can lead to missed opportunities and higher expenses incurred throughout the transportation process.
A T&E bond is a tool that allows a transportation company to move goods through two different ports within the United States for exportation to a different country. A great example would be a truck shipment originating in Mexico with final destination Canada. A T&E Bond would allow the transportation company to move the goods through the United States for ultimate importation into Canada. In this scenario, duty payments in the United States are avoided and shipping costs are more affordable overall. In practice, the bond “acts as a form of security to assure duties are being paid for products that are transported in and out of the United States. The bond is then reimbursed to the transportation company when the product is transported back out of the country once again. If for some reason the export never happens, the federal government then keeps the bond. ” [1]
An IT bond, on the other hand, is commonly used when moving goods between two ports of entry that operate within the customs territory of the United States for entry in the port of destination. “A request is filed with CEB when the imported goods are set to arrive at a port within the United States but has a different port listed within the United States as its destination” [2]. The carrier must file with the determined first port of arrival for an in-bond movement to start. The main difference between a T&E bond and an IT bond is that a T&E bond is only used when sending goods through the U.S. in transit to another country, where an IT bond can be used between two different ports within U.S. customs territory.
Contributor: Andrew Arias
What Allyn Can Do For You
Allyn has dedicated transportation and trade analysts that can ensure the appropriate carrier and bond is used. With over 25 years of experience, Allyn International can help you with the transportation process, while also finding ways to reduce cost. For more information on how Allyn International can help you, contact allyncustoms@allynintl.com.
About Allyn International
Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China and Prague, Czech Republic. For more information, visit www.allynintl.com.
References:
[1]https://www.fda.gov/ICECI/ComplianceManuals/RegulatoryProceduresManual/ucm179491.htm
[2] http://icustomsclearing.com/glossaryieandit.html