Temporary Import Bonds | TIB & ATA Carnet Bonds

A temporary import bond, formally known as a Temporary Importation Under Bond (TIB), is a U.S. Customs and Border Protection (CBP) surety bond allowing importers to bring goods into the United States temporarily without paying duties or taxes. The bond guarantees to CBP that the importer will either export the goods within the authorized time period (up to three years), destroy them under CBP supervision, or pay full duties and taxes if the goods remain permanently in the United States. Similar to freight broker bonds and continuous customs bonds, temporary import bonds facilitate international trade while protecting government revenue.

TIB serves as an alternative to the ATA Carnet system for temporary imports. While ATA Carnets function as international customs documents accepted by multiple countries for up to one year, TIB bonds are specific to U.S. Customs but allow longer time periods (up to three years) for goods to remain in the country. Importers choose between Carnets and TIB based on whether goods will enter multiple countries, how long they need to remain in the United States, and cost considerations. For U.S.-only temporary imports or situations requiring more than one year, TIB often proves more practical and economical.

The temporary import bond amount must equal at least 110% of the total duties and taxes that would be owed if the goods were permanently imported. This 110% requirement covers not only the base duties but also provides a buffer for potential penalties and liquidated damages if the importer fails to properly export the goods or submit required documentation. CBP regulations specify eligible goods categories, time limitations, documentation requirements, and procedures for proving goods were subsequently exported, ensuring TIB serves its intended purpose of facilitating legitimate temporary imports without revenue loss.

CBP regulations specify categories of goods eligible for Temporary Importation Under Bond. The fundamental requirement is that goods cannot be imported for sale or sale on approval - they must be temporarily entering the United States for specific purposes with the intent to re-export:

Commercial Samples

Nonresident individuals or foreign companies can import commercial samples under TIB to show potential U.S. buyers. These samples must be clearly marked or permanently altered to prevent sale (such as "sample not for sale" labels, punched holes, or other permanent markings). The samples facilitate international trade by allowing foreign manufacturers to demonstrate product quality, design, and specifications to U.S. purchasers without incurring duty costs on goods that will return to the country of origin.

Professional Equipment

Tools, instruments, cameras, sound equipment, and other professional equipment brought by nonresident professionals conducting business, performing services, or participating in events qualify for TIB. This includes equipment for photographers covering U.S. events, technical consultants bringing specialized diagnostic tools, performers touring with musical instruments, and film crews temporarily working in the United States. The equipment must be owned by the nonresident individual or company and used exclusively for professional purposes.

Trade Show and Exhibition Goods

Goods displayed at trade shows, exhibitions, conventions, and similar events qualify for TIB provided they are not for sale during the event. This category supports international trade events where foreign companies showcase products to U.S. buyers, demonstrate new technologies, or participate in industry exhibitions. After the event concludes, goods must be exported rather than sold to U.S. customers (unless duties are paid to convert to permanent importation).

Advertising Materials

Certain advertising materials including films, video recordings, sound recordings, charts, posters, and similar materials intended to advertise goods manufactured abroad qualify for TIB. These materials help foreign manufacturers promote their products in the U.S. market without duty costs. The materials must be used solely for advertising purposes and returned to the country of origin rather than distributed or sold in the United States.

Goods for Testing, Demonstration, or Experimentation

Prototypes, test equipment, demonstration units, and experimental goods can enter under TIB when imported for testing, product development, certification testing, or demonstration to potential buyers. This facilitates international business relationships where U.S. companies evaluate foreign-manufactured products before committing to purchase, or foreign manufacturers conduct testing in U.S. facilities to meet American standards or obtain certifications.

Vehicles for Racing, Exhibition, or Testing

Racing vehicles, concept cars, prototype vehicles, and vehicles for exhibition or testing purposes can be temporarily imported under TIB. Race cars competing in U.S. events, concept vehicles displayed at auto shows, and test vehicles undergoing evaluation in American conditions all qualify. The vehicles must be exported after the racing season, exhibition period, or testing concludes.

Understanding when to use Temporary Importation Under Bond versus an ATA Carnet helps importers select the most efficient and cost-effective method for their specific situation:

When to Use TIB

TIB is preferable when: goods will only enter the United States (not multiple countries), goods need to remain in the U.S. longer than one year (up to three years allowed), the importer has an established continuous customs bond covering multiple entries, goods value makes TIB more economical than Carnet fees, or time constraints prevent obtaining a Carnet before the planned import date. TIB provides greater flexibility for extended U.S. stays and integrates seamlessly with existing customs bonding arrangements for regular importers.

When to Use ATA Carnet

ATA Carnets are preferable when: goods will tour multiple countries that accept Carnets (over 80 countries participate), the importer makes frequent temporary imports across many countries and wants a standardized document, goods will remain abroad for one year or less, or the importer prefers a single document covering multiple countries rather than separate bonds in each jurisdiction. Carnets simplify customs procedures for multi-country tours such as international exhibitions, concert tours, or traveling sales presentations.

Substituting TIB for an Existing Carnet

CBP regulations allow substituting a TIB for an ATA Carnet if circumstances change during the temporary importation, provided the Carnet's one-year validity period has not expired. This flexibility accommodates situations where goods initially planned for short visits need extended stays in the United States. The importer posts a TIB bond, and CBP allows the goods to remain for the full three-year TIB period rather than requiring export within the Carnet's one-year limitation.

Cost Comparison Considerations

For single-country U.S. imports, TIB bond costs (typically 1-5% of the 110% duty value annually) may be lower than ATA Carnet fees, which include application fees, insurance, and service charges based on goods value. However, Carnets become economical for multi-country tours where separate TIB-equivalent bonds in each country would accumulate higher total costs. Importers should calculate total bonding costs for their specific itinerary when deciding between TIB and Carnet options.

Successfully importing goods under TIB requires following CBP procedures and maintaining documentation proving subsequent export or duty payment:

Continuous vs. Single Entry Bonds

Importers making regular temporary imports should obtain a continuous customs bond (minimum $50,000) covering all TIB entries plus other customs transactions for a one-year period. This bond type is required for importers conducting transactions totaling over $50,000 annually or making frequent entries. For occasional or one-time temporary imports, a single entry TIB bond covering just that specific shipment suffices. Single entry bonds cost less but must be purchased for each import, making them impractical for regular importers.

Entry Filing and Documentation

At U.S. entry, the importer or customs broker files CBP Form 7501 (Entry Summary) designating the entry as temporary importation under bond and referencing the surety bond number. The entry must include detailed goods descriptions with serial numbers when applicable, country of origin, estimated value (used to calculate the 110% bond coverage requirement), intended use explaining why TIB qualification applies, and proposed export date. CBP may require additional documentation proving foreign ownership, nonresident status, or other TIB eligibility factors.

Time Period Limitations

TIB allows goods to remain in the United States for up to three years from the date of importation. CBP grants specific time periods based on the goods type and stated purpose. Extensions beyond three years are generally not permitted. As the expiration date approaches, importers must either export the goods and provide proof of export to CBP, destroy the goods under CBP supervision with proper documentation, or pay full duties and taxes to convert the entry to permanent importation.

Export Documentation Requirements

When exporting goods previously imported under TIB, the importer must present the goods and all documentation to CBP at the port of exit. CBP examines the goods to verify they match the original TIB entry description, confirms serial numbers or identifying marks, and stamps the export documentation. The importer receives copies proving proper export, which must be filed with CBP to close the TIB entry and release bond liability. Electronic export filing through the Automated Export System (AES) may be required depending on goods value and destination country.

Consequences of Non-Compliance

Failure to export goods within the authorized time period, inability to present goods for CBP examination at export, or loss/theft of goods results in CBP liquidating the entry and assessing duties, taxes, and liquidated damages totaling approximately 110% of the duties owed. CBP makes demand against the surety bond, the surety pays CBP, and the importer must reimburse the surety for all amounts paid plus costs. Repeated TIB violations can result in bond cancellation and loss of TIB privileges for future imports.