InTek Freight & Logistics Blog

Definition of Shipping Commodity In-Bond within United States

Written by Rick LaGore | Jul 12, 2019

Shipping In-Bond

What is meant by shipping a commodity in-bond is the product is moving within the United States borders, but has not yet been cleared through the US Customs processes to officially enter the US government authority to be consumed by citizens or companies domiciled in the US.

Reasons to Ship In-Bond

  • Defer the payment of duties and taxes.
  • Move the product within the US border, with the eventual plan of shipping the product to a foreign country.
  • Move the product into a foreign trade zone (FTZ) to take advantage of its properties to defer or avoid payment of duties and taxes or transforming the product in some way for tariff inversion.

In-Bond Shipping, Storage and Bond Requirements

Customs Form 7512 - Transportation Entry and Manifest of Goods Form

Customs Form 7512 allows for the transport of goods within the US, although subject to inspection and permit.  The form is used by the US Customs and Border Patrol (CBP) to identify the product being transported within its borders and what country it came from.

Entities that Require a US Customs Bond

  • A person or business is importing product for commercial purposes and its value is over $2,500 or the product is subject to other federal agency requirements, then a US Customs bond must be posted.
    • If you or your company falls under this category, then it is highly recommended to utilize a Customs Broker to manage the transaction.  They will clear through their broker’s bond through either a single entry or continuous bond. The type of bond used depends on how frequently you plan to import product.
  • An international carrier, whether for passenger or freight travel, from a foreign origin to the United States or a domestic carrier that will be moving in-bond cargo.

Obtaining US Customs Bond

All US Customs bonds are obtained through the US Customs and Border Patrol Agency.

There is not a one size fits all bond, meaning the bond that is required for a person or business to post depends on the total value of the product being imported, plus other details about the entity holding the bond.

For more details on shipping in-bond, it is important to connect with the CBP and find a reputable US Customs Broker to help you through the process.

Other articles of interest:

About Foreign Trade Zones

Nearshoring Defined & Top 10 Benefits

IPI Freight Definition and Best Practices

ISO Container Definition and Facts

CTPAT Defined in 100 Words


If you're ready to take the next step, at InTek Freight & Logistics, we can help. Just tell us what you need and we'll discuss how our expertise can help with the unique shipping challenges your business faces. Rather do a bit more research first? View our Freight Guides for comprehensive articles and eBooks on all things freight and logistics.