Temporary Importation Under Bond

Temporary Importation Under Bond

Summary of Temporary Importation Under Bond

An arrangement whereby foreign merchandise may be entered into the United States for a limited period of time without payment of duties. Normally, duties paid on foreign merchandise are not recoverable upon re-exportation of the goods from the United States. To avoid a loss on duties paid but not recoverable, a U.S. importer may post a temporary import bond (T.I.B.) equivalent to twice the value of the duties and excises that would otherwise be assessed on the goods. With the exception of automobiles and certain automotive equipment, which must be re-exported after six months, items imported under T.I.B. may remain in the United States for one year; extensions are permitted up to a total of three years from original importation. Failure to re-export the goods at the end of the authorized period results in forfeiture of the bond to the government as liquidated damages. Temporary importations under bond are commonly used to accommodate equipment sent to the United States for repair, samples for the purpose of soliciting orders, and articles for testing.

(Main Author: William J. Miller)


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