Cargo Systems Messaging Service

CSMS # 57324206 - In-Bond Regulations - Clarification on When Part 122 (Air Commerce) Subjugates to Part 18 [Air BOLs Transferred to Truck/Rail MOT] and Reporting Requirements

Office of Field Operations, Cargo and Conveyance Security (CCS) Directorate is issuing this message to update previous messaging to the trade and cargo logistics community regarding the amended In-Bond regulations (19 CFR Part 18) as issued under the Final Rule: Changes to the In-Bond Process, CBP Decision 17-13, approved September 20, 2017 (82 FR 45366-45408, September 28, 2017). This message also clarifies information conveyed in the Automated In-Bond Processing Business Process Document, Version 2.1, July 26, 2019 (Office of Field Operations, Publication No. 0774-0719), Section 1; and the “In-Bond Regulatory Changes Frequently Asked Questions” webpage (FAQ #2) located at https://www.cbp.gov/border-security/ports-entry/cargo-control/bond/bond-regulatory-changes-faqs

“Except as provided in parts 122 (Air commerce) and 123 (CBP relations with Canada and Mexico) . . .,[19 CFR Part 18] sets forth the requirements and procedures pertaining to the transportation of merchandise in-bond . . .” 19 CFR § 18.0(a).

19 CFR Part 122, Subpart J (Transportation In-Bond and Merchandise In-Transit) applies to all air cargo transported on air waybills in ACE Air Manifest from arrival airports to destination airports via aircraft, including entries for transportation and exportation for merchandise exported on aircraft (see 19 CFR § 122.91 and §122.94). Subpart J allows airlines to move in-bond cargo between airports via contract truck carriers specifically for the purpose of being ultimately exported by aircraft at another airport. In circumstances when the in-bond shipment is transferred to any another mode of transport for exportation, the requirements of
19 CFR § 18.1(h) must be followed.

CCS would like to reiterate that for carriers utilizing air waybills in lieu of in-bond entries, as authorized by 19 CFR § 122.92, are only authorized to do so within the parameters contained in 19 CFR § 122.91 which is specific to (a) for immediate transportation to another airport without appraisement; or (b) for transportation through the U.S. and later exportation by aircraft.

Notification of arrival at the port of destination is required at the destination or exportation airport, based on 19 CFR § 122.93, and further an update to the in-bond filing to report the arrival and/or export is required within 2 business days based on 19 CFR § 18.1(h) and 19 CFR § 18.1(j).

Air waybills are not authorized to be used in lieu of a separate 7512 filing/in-bond number for shipments that move to non-airport locations.

CCS reaffirms that all carriers are required to update their electronic in-bond entries in the ACE In-Bond Module within the required timeframes. A 30-day time frame is provided for the maximum in-transit time based on 19 CFR § 18.1(i).

Failure to comply with these regulations will result in liquidated damages.

If an in-bond entry is subject to audit, the electronic reporting of arrival or exportation, or date perforated/stamped copy of the CBP Form 7512, represents the required proof of arrival/exportation.

Any questions or comments regarding this message can be directed to CCS/Cargo Security and Controls Division at cscwarehousing@cbp.dhs.gov

CSMS# 17-000736 - In-bond Regulations, 11/22/2017
CSMS# 18-000013 - Extension of In-bond Regulation Enforcement Dates, 1/04/2018
CSMS# 18-000466 - In-bond Enforcement Discretion for 8/4/18 Implementation, 8/01/2018
CSMS# 19-000011 - Postponement of Enforcement Dates for In-Bond and ISF-5, 1/18/2019
CSMS# 19-000100 - Enforcement dates for In-bond and ISF-5 to be determined at later date,
3/01/2019
CSMS# 19-000103 - CORRECTION to CSMS 19-000100 Enforcement dates for In-bond to be determined at later date, 3/01/2019