Trusted trader, FTZ, warehouse, in-bond, TIB and drawback

This glossary covers Trusted trader, FTZ, warehouse, in-bond, TIB and drawback terms used by importers, customs brokers and trade-compliance teams.

CTPAT

Customs Trade Partnership Against Terrorism: CBP's voluntary supply-chain security partnership for importers, brokers, carriers and other trade parties; not its trade-compliance arm and not a Canadian or EU program.

CTPAT Trade Compliance

The trade-compliance arm of CTPAT and successor to Importer Self-Assessment: importers with proven internal controls self-test in exchange for audit-pool removal and other benefits; not CTPAT security membership itself.

ISA

Importer Self-Assessment: the former CBP importer partnership (from 2002) that traded importer self-testing for audit relief; closed and succeeded by CTPAT Trade Compliance; not a security program.

e214

The electronic CBP Form 214 admission filed in ACE to admit merchandise to a foreign-trade zone and designate zone status; not the paper form as such, not a consumption entry.

PTT

Permit to transfer: the CBP authorization moving unentered or in-bond cargo from the port of unlading into a foreign-trade zone or bonded facility; not a transfer-pricing term.

privileged foreign status

The FTZ status election that fixes classification, value and duty rate at the time of election, before manipulation, and is irrevocable; not the default status and not domestic status.

NPF status

Nonprivileged foreign status: the default FTZ status, under which classification and duty are determined in the goods' condition when withdrawn for consumption; not privileged foreign and not domestic status.

zone-to-zone transfer

Movement of zone-status merchandise from one foreign-trade zone to another under bond, with admission at the receiving zone; not an entry for consumption and not a move within one zone.

FTZ Board

The Foreign-Trade Zones Board in the Department of Commerce that grants and regulates zone, subzone and production authority; not CBP, which supervises zone operations day to day.

bonded warehouse class 3

A class of CBP bonded warehouse under 19 CFR part 19, in practice a public bonded warehouse storing imported goods; not a foreign-trade zone or container freight station.

warehouse withdrawal

The entry that takes goods out of a CBP bonded warehouse: for consumption (paying duty), for transportation, for exportation or to another warehouse; not the original warehouse entry.

IT in-bond

Immediate transportation: the in-bond movement (entry type 61) carrying unentered goods under bond from the arrival port to another port for entry there; not T&E and not IE.

T&E

Transportation and exportation: the in-bond movement (entry type 62) carrying goods under bond through the United States to a port for export; not immediate transportation and not immediate exportation.

IE

Immediate exportation: the in-bond movement (entry type 63) exporting goods directly from the port where they are, without entry for consumption; not T&E and not a drawback export.

QP/WP

The ABI in-bond messages: QP transmits the in-bond application and WP reports arrival or export; the electronic filing channel for IT, T&E and IE moves; not entry summary records.

TIB

Temporary importation under bond: duty-free entry (type 23) of HTSUS 9813 articles bonded for export or destruction within a set period; not a permanent duty-free entry, not an ATA carnet.

ATA carnet

An international customs document serving as both entry and bond for temporary importation of professional equipment, samples and exhibition goods; issued by guaranteeing associations; not a TIB entry.

carnet claim

CBP's demand on the guaranteeing association when goods imported under an ATA carnet are not proved reexported or destroyed in time; not a liquidated damages claim on a CBP bond.

1313(j)(1)

Unused merchandise drawback by direct identification (19 U.S.C. 1313(j)(1)): refund of duties on the same imported goods exported or destroyed unused; not substitution and not manufacturing drawback.

1313(j)(2)

Unused merchandise drawback by substitution (19 U.S.C. 1313(j)(2)): refund on exported or destroyed unused goods classifiable under the same 8-digit HTSUS subheading as the designated imports; not direct identification.

1313(b)

Manufacturing drawback by substitution (19 U.S.C. 1313(b)): refund of duties on imported merchandise when articles made from it or from substituted merchandise are exported or destroyed; not unused-merchandise drawback.

1313(c)

Rejected merchandise drawback (19 U.S.C. 1313(c)): refund on imported goods not conforming to sample or specifications, shipped without consent or defective, when exported or destroyed; not unused-merchandise drawback.

1313(p)

Petroleum derivatives drawback (19 U.S.C. 1313(p)): substitution drawback for qualified petroleum products exported after import of like products; a specialized provision for refiners and traders; not unused-merchandise substitution.

TFTEA drawback

The drawback regime under the Trade Facilitation and Trade Enforcement Act, implemented in 19 CFR part 190: 8-digit substitution, electronic ACE claims, five-year window; not the pre-TFTEA part 191 regime.

8-digit substitution

The TFTEA substitution standard: exported or destroyed goods may be substituted for designated imports classifiable under the same 8-digit HTSUS subheading, for unused and manufacturing drawback; not commercial interchangeability.

accelerated payment

Drawback accelerated payment: CBP pays an approved claimant the estimated drawback before the claim liquidates, against a bond; a privilege applied for and revocable; not a refund on liquidation.

waiver of prior notice

Drawback privilege letting an approved claimant export or destroy unused merchandise without the CBP Form 7553 notice of intent before each shipment; not a waiver of records.

drawback ruling

A CBP manufacturing drawback ruling, general (pre-approved industry ruling adopted by notice) or specific (the manufacturer's own approved operation), required for manufacturing drawback claims; not a binding classification ruling.

lesser of rule

The drawback amount rule: a substitution refund is capped at the lesser of duties paid on the designated imports or duties attributable to the substituted goods; not a valuation rule.