Temporary Importation Under Bond: TIB Headings, Term, and Bond
Key Points
- Temporary importation under bond (TIB) lets qualifying articles enter without payment of duty under the 9813.00 headings of HTSUS Chapter 98, on the condition that they are exported or destroyed within one year of importation.
- The period can be extended in one-year increments to a total of three years, but only if the application is filed before the current period expires.
- The bond is generally set at double the estimated duties, with a lower amount allowed for certain articles.
- Automobiles and parts entered for show purposes under 9813.00.75 are limited to six months with no extension.
- A TIB cannot be used for articles that will be sold in the United States, and failure to export or destroy in time exposes the bond to liquidated damages.
On this page
- What temporary importation under bond is
- The Chapter 98 headings and qualifying uses
- The one-year term and extensions
- The double-duty bond
- Exportation, destruction, and liquidated damages
- What importers should do
- Key references
The links in this article go to the primary documents: the regulations, tariff schedule pages, and agency pages themselves. Read the source.
Temporary importation under bond is a customs procedure that allows articles to enter the United States duty free for a limited purpose, secured by a bond, and requires that they be exported or destroyed within one year of importation. The term can be extended up to three years in total, and the bond is generally double the estimated duties.
What temporary importation under bond is
TIB is a conditional entry. The duty is not waived permanently. It is suspended because the importer promises, through a bond, that the articles will leave the country or be destroyed under customs supervision within the allowed period. If that promise is kept, no duty is collected. If it is not, the bond is what CBP looks to.
The procedure is governed by 19 CFR 10.31 to 10.40, found in 19 CFR part 10 at the eCFR. The goods are classified in the 9813.00 headings of HTSUS Chapter 98, subchapter XIII.
Entry type
TIB transactions are filed under entry type 23. The entry type matters because it tells CBP the goods are not entering for consumption, and it drives how the entry is tracked against the bond and the export deadline. For how the entry number itself is built, see Entry Number Format: How the 11-Character CBP Entry Number Works.
The one thing a TIB cannot do
The articles may not be sold in the United States. A TIB is for goods that come in temporarily and go back out. If the commercial plan involves a U.S. sale, the transaction does not fit the procedure, and the importer should settle the proper entry basis before the goods arrive, not after.
The Chapter 98 headings and qualifying uses
Subchapter XIII of Chapter 98 covers articles entered without payment of duty under bond for exportation or destruction within one year of importation. Each heading is tied to a use, and the goods must actually be used as the heading describes. The uses named in the headings include:
- Articles to be repaired or altered
- Samples for taking orders
- Professional equipment and tools of trade
- Articles for testing and experimentation
- Articles for exhibition
Read the heading text and the subchapter's U.S. notes for the specific article, because conditions differ by heading. Picking the right 9813.00 subheading is a classification decision, so the same care applies as with any other HTS line. Check the heading on the official HTS site rather than relying on a summary.
Automobiles and parts for show purposes
Heading 9813.00.75 covers automobiles and parts entered for show purposes. This heading has a shorter term of six months, and it carries no extension. The limit comes from 19 CFR 10.39 and the subchapter's U.S. notes. Do not plan a show-vehicle import around the general one-year and three-year rules.
The one-year term and extensions
The default period is one year from the date of importation. Within that year the articles must be exported or destroyed, and proof must be in place.
How extensions work
- Extensions are granted in one-year increments.
- The total period, counting the original year, cannot exceed three years.
- The application must be made before the current period expires. A request filed after the deadline is a late request for a term that has already ended.
- The show-purpose automobile and parts heading is the exception: six months, no extension.
The request is made through the extension application CBP uses for this purpose. For the form and how to complete it, see the CBP Form 3173 extension application guide. Calendar the expiration of every open TIB entry, and file with room to spare, since CBP must act on the request before the period lapses.
The double-duty bond
The bond for a TIB is, as a general rule, in an amount equal to double the estimated duties on the articles. The regulations allow a lower amount for certain articles, so confirm the correct amount for the heading and the goods under 19 CFR 10.31 to 10.40.
Why double
The doubled amount reflects that the bond secures a duty obligation that has been suspended, not paid. It also covers the liquidated damages exposure if the conditions are not met. Because the amount depends on estimated duties, a high-duty product, or a high-value one, can require a bond much larger than a continuous bond already on file. Check the sufficiency of the bond before you file the entry, not at the time of arrival.
The party named as importer of record is the party bound by the bond. If you are unsure who should fill that role, see Importer of Record: Owner, Purchaser, Broker, or Non-Resident, and for the identifier itself, IOR Number: Importer of Record Number Explained.
Exportation, destruction, and liquidated damages
A TIB closes out with proof that the articles were exported or destroyed. The regulations set out how that proof is made, and the importer or broker should keep it with the entry file. Without it, CBP has no basis to cancel the bond charge.
If the deadline is missed
When the articles are neither exported nor destroyed within the allowed period, the bond is subject to liquidated damages. That is a claim against the bond, separate from the duty on the goods. Missing the date because an extension was never filed is the most avoidable way to reach this point.
Related: other ways to defer duty
TIB is not the only deferral tool. Goods that will be stored for longer periods, or manipulated, may fit a different procedure. See Customs Bonded Warehouse: Classes, 5-Year Limit, Duty, Manipulation for comparison.
What importers should do
- Confirm before entry that the use fits a specific 9813.00 heading, that no U.S. sale is planned, and that the goods are classified as that heading requires.
- Check that the bond amount (generally double the estimated duties, or the lower amount where the regulations allow) is in place, and file the entry as type 23.
- Calendar the expiration date of each entry, and file any extension application before it expires, keeping in mind the three-year total and the six-month, no-extension rule for show automobiles and parts.
- Export or destroy within the period and keep the proof of exportation or destruction in the entry file.
Key references
- Harmonized Tariff Schedule, hts.usitc.gov: Chapter 98, subchapter XIII, the 9813.00 headings and U.S. notes.
- 19 CFR part 10, eCFR: sections 10.31 to 10.40 on temporary importation under bond, including the bond, extensions, and 10.39.
- U.S. Customs and Border Protection, cbp.gov: agency guidance on entry filing and bonds.
- CBP Form 3173 extension guide: how to apply to extend the TIB period.
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