Bonded carriers and the 7512: how in-bond freight works

You need a bonded carrier because filing and liability are two different jobs. A customs broker can submit the in-bond application, but submitting it does not put the customs broker's bond on the line. Under CBP's in-bond rules, freight moving in bond has to be delivered to a carrier that is bonded for that purpose, and the party whose bond is obligated on the entry is the one that answers to U.S. Customs and Border Protection for custody, delivery and reporting. The customs broker does the paperwork. The bonded carrier carries the risk.

What does "in-bond" mean?

An in-bond movement lets imported freight travel from one U.S. port to another under a customs bond, before it is appraised and without paying duties at the port where it arrived. The freight is entered at the destination port, or it leaves the country from a port of exportation. Three entry types cover most truck moves:

• IT, immediate transportation. The freight moves in bond to another U.S. port and is entered there.
• T&E, transportation and exportation. The freight moves in bond to another U.S. port and is exported from it. Mexico to Canada through the U.S. is the classic case.
• IE, immediate exportation. The freight is exported directly from the port where it arrived, without moving to another port.

On Mexico freight, IT and T&E are the two you will run into. A northbound load that clears at the border and enters U.S. commerce there does not move in bond. One caution on IE: a truck that arrives at a U.S. port with an IE as its only entry can be refused authorization to proceed and sent back to the country it came from.

What is the 7512?

CBP Form 7512 is the Transportation Entry and Manifest of Goods Subject to CBP Inspection and Permit. CBP still publishes the form, but the in-bond application for a truck move is transmitted to CBP electronically through a CBP-approved system, and CBP eliminated the paper 7512 for most movements. The exceptions are narrow: pipeline, certain truck shipments transiting the U.S. from Canada, and an outage of the electronic system. When a customer says "the 7512," they mean the electronic in-bond record and its number. Ask the customs broker for that number and share it with the carrier before the truck reaches the border.

Who files it, and who is responsible?

This is where the confusion lives, so take the two halves separately.

Filing. CBP lets three parties file a transportation entry: the carrier that brings the freight to the port, the carrier that will accept the freight under its bond, or any person with a sufficient interest in the merchandise, shown by the bill of lading or a similar document. Each can act through an authorized agent, which is how a customs broker ends up filing for the importer.

Responsibility. Moving freight in bond requires a custodial bond, and the freight has to be delivered to a carrier that is bonded for that purpose. The party whose bond is obligated on the transportation entry is liable for a shortage, a late or missing delivery, a failure to export, or a broken seal. CBP presumes that any loss found at the destination happened while the freight was in that party's custody unless that party produces conclusive evidence otherwise, and it can assess liquidated damages plus the duties and taxes on anything missing.

That is why a customs broker can file without taking on the carrier's exposure. The filing is paperwork. The bond is a promise to CBP, and on an in-bond move that promise belongs to the bonded carrier.

Does the truck itself have to be bonded?

Not always, and this is the part many brokers get wrong. CBP's rules say freight delivered to a bonded common carrier, contract carrier or freight forwarder may be transported with the use of facilities of other carriers, bonded or not, and the responsibility stays with the carrier that obligated its bond. In practice, a bonded carrier can put your load on a partner's truck. The partner drives. The bonded carrier answers to CBP.

So the question to settle is not "is this truck bonded?" It is "whose bond covers this movement, and did that carrier agree to it?" Get the bonded carrier's name from the customs broker, then confirm with that carrier that any other truck on the load is running under its bond. A truck that looks bonded on paper, with nobody's bond actually obligated on the entry, is a problem you find out about at the port of destination.

One more distinction. If the load is handed to a different bonded carrier that takes over the liability, the first carrier reports arrival and the second files a new in-bond application. That is a customs step, not a dispatch note.

When does a Mexico load move in bond?

You will see it in three situations:

1. Mexico to Canada through the U.S. The load crosses at a southern port, moves as a T&E and exports at the northern border. Canada has its own bonding. CBSA requires bonded highway carriers to post financial security. A bonded carrier can move goods past the first point of arrival to an inland CBSA office or sufferance warehouse, or in transit through Canada; a non-bonded carrier has to have the shipment released at the first point of arrival unless it posts a single-trip authorization bond there. That is separate from the U.S. bond. Mexico-to-Canada freight in the nearshoring guide.
2. Entry at an inland U.S. port. The importer wants the freight entered away from the border, usually where its customs broker or consignee sits. That is an IT.
3. A bonded warehouse or foreign-trade zone. The freight is held under bond before it is entered or exported.

What deadlines apply?

In-bond freight runs on a clock, and every deadline lands on the party whose bond is obligated.

• Transit. The freight has to be delivered to CBP at the destination or export port within 30 days. The count starts on the day the conveyance arrived at the origination port, if the application was approved before arrival, or the day CBP authorized the movement, whichever is later. Time held for a CBP or other-agency exam does not count. A diversion to another port or a new application does not extend it. CBP can extend the limit on a written request, and can also shorten it.
• Arrival. Arrival at the destination or export port has to be reported to CBP within two business days, with the code for the location where the freight sits.
• Export. On a T&E or IE, the freight has to be exported within 15 calendar days after the last portion arrives at the export port, and the export has to be reported within two business days. After that, the freight becomes subject to general order requirements.
• Seals. The trailer or container has to be sealed, and the seals have to stay intact until arrival, unless CBP waives sealing. The seal number goes on the application, or is added within two business days of the carrier taking possession.
• Changes. Any change to quantity or destination has to be updated in the in-bond record within two business days.

You can divert in-bond freight to a different port, but only by requesting it through the in-bond record, CBP can deny it, and an approved diversion does not reset the clock. The same goes for a short shipment or a bonded warehouse: each is a customs step, not a dispatch decision.

How do you set up an in-bond load?

1. Get the customs broker's contact from your customer. On Mexico freight, the Mexican shipper usually provides it.
2. Confirm the in-bond type. IT, T&E or IE changes the route, the deadlines and which borders are involved.
3. Confirm whose bond covers the movement. Get the bonded carrier's name and confirm any other carrier's truck is authorized under that bond.
4. Post it with the requirement turned on and the details in the message. On Cargado, the posting's carrier requirements include International Carrier Bonded for the US and Mexico. Turn it on so matching notifies carriers whose profile says they are bonded. Then put the in-bond type, the destination or export port and the bond arrangement in the custom message. It is the first thing carriers read. The checkbox filters carrier profiles. It is not proof that a bond is on file with CBP, and a carrier who finds the posting on their own can still bid, which is why step 3 comes first. How to post it right.
5. Plan for the deadlines. Share the destination or export port and the timing with the carrier up front. The 30-day transit limit is a ceiling, not a target.

Does an in-bond requirement affect bids?

Turning on the bonded requirement narrows the pool of carriers who are notified to those whose profile clears it, and the move itself adds steps and reporting. Plan more lead time than a standard crossing, post as early as the freight is real, and message the suggested carriers in the Coverage panel with the in-bond type and ports spelled out. Carriers who run in-bond regularly know the process, which is who you want on freight with a hard clock. Why a posting goes quiet, and how to fix it.

This article is general information, not customs advice. The licensed customs broker on the file has the final word on any in-bond movement.