Who Should Consider a Temporary Importation under Bond (TIB): Duty-Free TemporaryImport Solution For You.
Temporary import solutions enable goods imported for a short period to enter duty-free, streamlining international operations and avoiding excess tariffs. Two leading mechanisms exist for these purposes: Temporary Importation under Bond (TIB) and the ATA Carnet.
In this article, we focus specifically on TIB, explaining how it works, who qualifies, cost considerations, compliance checkpoints, and common pitfalls. A separate article will address ATA Carnets in detail so businesses can understand when each tool may be the better option for trade shows, repairs, or professional equipment.
What Is Temporary Importation under Bond (TIB) and How Does It Work?
Temporary Importation under Bond (TIB) is a U.S. Customs procedure that allows goods to enter for a limited time without paying duties, provided the importer posts a financial guarantee covering potential tariffs. By pledging the estimated duties, companies can re-export or destroy items within the prescribed period, benefiting from duty relief while maintaining compliance with CBP regulations.
What Are the Key Features and Purpose of a Temporary Import Bond? Well, a Temporary Import Bond serves as a financial security to guarantee that dutiable goods will either re-export or be destroyed within the allowed timeframe: it eliminates immediate tariff payments by covering estimated duties up front, attaches a legal obligation to re-export goods, ensuring importers honor temporary entry requirements, and leverages Harmonized Tariff Schedule subheadings (HTSUS 9813.00.05–9813.00.75) to classify eligible entries. These features underpin efficient cross-border operations and reduce cash flow burdens for short-term shipments. Only items listed in specific HTSUS subheadings qualify, typically including machinery, tools, cameras, and exhibition materials. For example, professional equipment under subheading 9813.00.05, scientific instruments classified in 9813.00.25, and art and exhibition materials under 9813.00.45
Consumables, goods for sale, and items not expressly listed cannot use TIB, requiring importers to seek alternative entry procedures or pay standard duties. The TIB application process requires the following steps:
Complete CBP Form 7501 with item descriptions, values, and HTSUS classifications.
Secure a bond through a licensed surety company for twice the estimated duty.
Submit the bond and form to the port director before arrival.
Retain copies of the in-bond entry record and bond for audit.
Accurate documentation prevents delays and ensures seamless customs clearance. The TIB remains valid for up to three years, with extensions possible upon written request before expiration.
Initial period: 1–3 years based on bond terms
Extension requests must include justification and updated bond values
Late re-exportation triggers liquidated damages equal to the bond amount
Staying within deadlines and maintaining clear records mitigates penalty risks and fosters regulatory trust. The table below shows the profile in fees, geographical coverage, and procedural requirements for Temporary Importation under Bond.
Conclusion
Temporary Importation under Bond (TIB) offers companies a cost-effective, duty-free way to bring goods into the U.S. for a limited time. By posting a bond and complying with strict re- export requirements, businesses can reduce cash flow strain and streamline short-term international projects. However, the process is highly technical, with strict deadlines, eligibility limits, and penalties for mistakes. For companies, the real challenge is not just understanding the rules but demonstrating compliance if U.S. Customs and Border Protection (CBP) initiates an audit or enforcement action. Imperial Shield PLLC assists clients in navigating these obligations, ensuring documentation is accurate, and mitigating exposure to penalties or disputes.
If your organization is considering a TIB or has already received inquiries from CBP regarding temporary imports, Imperial Shield PLLC can help you evaluate risks, respond effectively, and remain compliant while protecting your business interests.