An in-bond shipment is freight that enters the United States without being cleared for US consumption at the arrival port. Duty and formal entry are deferred — to a different US port, or to the point where the goods exit the country. For a Canadian carrier, in-bond is what lets you haul Toronto-to-Laredo freight through the US without filing a US consumption entry in Detroit.
Quick answer
An in-bond shipment moves through the US under a customs bond without duty paid at the arrival port. CBP recognizes three types: Immediate Transportation (IT, port-to-port within the US), Transportation and Exportation (T&E, through the US to Canada or Mexico), and Immediate Exportation (IE, exported from the same port). The carrier files CBP Form 7512 or the ACE electronic equivalent and must close the bond within 30 days.
TL;DR
- Three in-bond types: IT (to another US port for consumption entry), T&E (transiting the US to Canada or Mexico), IE (exported from the same port).
- Canadian carriers file T&E most often for through-freight; IT for seaport-to-inland moves.
- Filing runs electronically through ACE e-Manifest since the 2024 e-Bond mandate; paper Form 7512 is a backup.
- A CBP Type 2 custodial bond (minimum $25,000 USD) covers most highway in-bond moves.
- Must close at the destination port within 30 days; missed closures trigger liquidated damages up to twice the duty and tax value.
What is an in-bond shipment?
The default at a US port is a "consumption entry" — duty and tax paid, goods released into US commerce. In-bond is the alternative: the goods physically cross the border, but CBP treats them as still under customs control while they move onward. The carrier's bond guarantees the goods reach the destination port, leave the country, or are surrendered to CBP. If they disappear, the bond pays the duty and penalty.
In-bond lets you haul Canadian freight through the US without filing a US import entry, move a seaport container inland for entry elsewhere, or re-export goods from the arrival port. At primary, the officer scans the in-bond entry, verifies the seal, and directs the truck onward.
What are the three in-bond entry types?
| Type | Full name | Typical use | Closure event |
|---|---|---|---|
| IT | Immediate Transportation | US port to another US port for consumption entry | Consumption entry at destination port |
| T&E | Transportation & Exportation | US entry, destined for Canada or Mexico | Export verified at departure port |
| IE | Immediate Exportation | Arrives and leaves the same US port | Export verified at the same port |
When do Canadian carriers use in-bond?
Four scenarios cover nearly all Canadian in-bond volume:
- Canada-to-Mexico transit. T&E at the Canada-US border port, closed at the US-Mexico exit.
- Canada-to-Canada via US. Maritimes-to-Ontario through Maine; T&E at first US entry, closed at the exit back into Canada.
- US seaport to Canadian importer. Container lands at Long Beach or Savannah; moves under IT to a US border crossing; then crosses into Canada.
- Bonded warehouse to export. Goods in a US bonded warehouse that get re-exported — IE from the warehouse port.
The filing is the broker's job. The carrier's responsibility is the physical move: no diversion, no unsealing, arrive with seal intact, get the entry closed.
What paperwork and filings are required?
- CBP Form 7512 — the paper in-bond document, still used as a backup.
- ACE e-Manifest — since the 2024 e-Bond mandate, in-bond data is filed electronically; the in-bond number is scanned at primary.
- Bond — your CBP Type 2 custodial bond covers most in-bond moves; high-value loads may need a single-transaction bond on top. See our cross-border playbook for bond sizing.
- Seal — ISO 17712 high-security seal on every in-bond trailer, recorded in the manifest, verified at destination.
- Closure — destination port files the consumption entry (IT) or verifies the export event (T&E, IE) within 30 days of the entry date.
What are the common in-bond mistakes?
Missing the 30-day closure. The destination broker forgets to file; CBP assesses liquidated damages up to twice the duty and tax value. Dispatcher-owned day-20 and day-25 reminders prevent a four-figure penalty.
Unsealing or transloading en route. Breaking the seal or swapping trailers breaks the chain of custody and CBP catches it at closure. If a transload is required, a new in-bond entry is filed under the new carrier's bond with a new seal.
Wrong destination port. Broker files IT to Chicago; carrier hauls to Kansas City. Chicago never receives the closure trigger. Confirm the destination port at dispatch-out and amend before arriving if routing changes.
Regulated commodities. FDA food, USDA meat, EPA chemicals, and DOT hazmat have rules that sometimes prohibit in-bond. The broker confirms eligibility before filing.
Expired carrier bond. Type 2 bond lapses between arrival and closure; CBP holds the carrier liable. Calendar renewal 60 days before expiry.
FAQ
What is the difference between IT and T&E?
An IT (Immediate Transportation) entry moves goods from one US port to another US port where the consumption entry is filed — goods stay in the US. A T&E (Transportation and Exportation) entry moves goods through the US to Canada or Mexico where they exit. Canadian carriers use T&E for through-freight; IT for seaport-to-inland moves.
How long do I have to close an in-bond shipment?
Thirty days from the entry date at the origin port. Miss it and CBP can assess liquidated damages up to twice the duty and tax value, plus bond enforcement. Most moves close within days; the 30-day clock exists for breakdowns, warehouse holds, and rerouting.
Who pays the duty on an in-bond shipment?
No duty is paid on the in-bond leg itself. Duty is paid at closure if it is an IT entry — the importer of record pays at the destination port. For T&E and IE, no US duty is paid because the goods never enter US commerce. If never closed, the carrier's bond pays.
Do I need a separate bond for in-bond shipments?
Most Canadian carriers use their existing CBP Type 2 custodial bond for in-bond moves. Very high-value loads may need a single-transaction bond on top, filed by the broker. Minimum face value is $25,000 USD.
Can I do an in-bond move without a customs broker?
Technically yes, practically no. The entry is the broker's filing, tied to the importer's consumption entry or the exporter's export filing. Carriers supply manifest data, SCAC, bond, and seal; the broker supplies the in-bond number, port codes, and commodity description.
Next steps
Most in-bond pain is preventable with a closure-tracking habit — every filed in-bond goes on a calendar with a day-20 reminder to chase the destination broker. BorderPro.ai's in-bond module files T&E and IT entries directly from your TMS dispatch record and alerts you when a closure is overdue; the ACE manifest walkthrough covers the manifest side of the same move.