Importing goods into the U.S. temporarily?  There is an entry type that allows importers to bring certain goods into the U.S. duty-free for up to 3 years - a Temporary Importation Under Bond (TIB).

A TIB is an excellent solution for eligible imports subject to substantial duties that will ultimately be exported. TIBs can also be used for goods that are not otherwise allowed to enter the U.S. due to pending FDA or EPA approvals, among other reasons.

Two critical points to keep in mind before we dive deeper:

1) Not all temporary imports should be declared as a Temporary Importation under Bond and

2) Only certain goods will qualify for a TIB entry.

Steps to Determine if a TIB is Suitable for Your Import

Evaluate Duty

We first recommend evaluating how much duty and tax you will pay if you import your goods under a standard customs consumption entry. 

If the duty and tax amount is minimal, for example, under $200, most likely, it will not make financial sense to use a TIB entry. The administrative costs of filing and closing out a TIB may easily outweigh the duty-free benefit.

It would also be best to consider the time and effort you will need to spend ensuring the goods comply with TIB requirements. Non-compliance could mean potential penalties and liquidated damages.

The exception to the low duty and fees rule is if your goods need to be imported temporarily on a TIB because they would not otherwise be allowed into the U.S.

Check Product Eligibility

The next step will be to ensure your import qualifies for a TIB entry by checking if the commodity and conditions are described by one of the fourteen Harmonized Tariff Schedule (HTS) subheadings specific for temporary imports:    

Review TIB Requirements

Your last step is to check if you can satisfy the requirements of a TIB. You need to agree to several conditions before U.S. Customs will allow you to import under a TIB. Importers could be penalized if there is any deviation from the requirements.

Customs Bond

The bond amount is for twice the amount of duties and fees that would otherwise be owed on the importation, except for shipments under three subheadings (9813.00.20, 9813.00.25, 9813.00.50), which are bonded at 110%. In the case of restricted / prohibited merchandise, the bond shall be in an amount equal to the greater of two times the duty including fees or three times the value of the merchandise. Often, an importer's continuous bond will be sufficient, but if not, an additional bond may be needed to secure a TIB entry. Refer to our Trade Alert for more information.

Statement of Use

A statement describing the merchandise in sufficient detail and how the merchandise will be used under the TIB classification will need to be provided at the time of import to U.S. Customs, and a statement verifying the articles are not to be put to any other use and that they are not imported for sale or sale on approval.

Export or Destroy 

Merchandise must be exported or destroyed within a specified time or pay liquidated damages. Customs also needs to be correctly notified to close out a TIB. Most goods can remain in the U.S. for a one year period and may be extended for an additional year up to two times for a total of three years with permission from U.S. Customs.

After going through the above steps, you should be able to determine if a TIB entry is suitable for your import. Remember, not all temporary imports can be brought into the U.S. duty-free under a TIB. There are other types of customs solutions available depending on your circumstance.