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Understanding Bonded Shipments: A Guide for Canadian Cargo Traveling Through the U.S.
A crane purchased in Canada transits through the United States for export.
Working with a freight forwarder that knows their way around bonded shipments is essential for large assets purchased in Canada. As shipments of large assets from Canadian ports are more limited than from U.S. ports, a bonded shipment is often a necessary part of the export process.
When shipping goods from Canada that transit through the United States, bonded shipments offer an efficient solution to ensure customs compliance and smooth transit. A bonded shipment allows cargo to pass through the U.S. without the need for immediate customs clearance or payment of duties, provided it remains under bond, and is delivered to a bonded facility for immediate export.
What is a Bonded Shipment?
A bonded shipment is a load of goods transported under a customs bond, which guarantees that duties and taxes will be paid if necessary. For Canadian cargo entering the U.S. en route to a third destination (or back to Canada), this ensures that the cargo is merely "in transit" and not intended for U.S. importation.
Key Steps in the Bonded Shipment Process
Customs Documentation: Proper paperwork, such as the Canadian export declaration and the U.S. Transportation and Exportation (T&E) bond, is required.
Bonded Carrier: A carrier authorized to handle bonded shipments ensures the cargo follows prescribed routes without diversion.
Secure Transport: The shipment remains sealed while in transit through the U.S.
Exit and Final Delivery: At the U.S. border exit point, customs authorities confirm that the goods leave as planned.
Benefits of Bonded Shipments
This process minimizes customs delays, reduces costs, and simplifies logistics for cross-border trade. Leveraging a bonded shipment system can save businesses time and money while ensuring regulatory compliance.
At ROROQuotes, we handle bonded shipments weekly, offering our clients cost-effective options for their cargo purchased in Canada.