CHAPTER 11
 
TEMPORARY FREE IMPORTATIONS
 

Temporary Importation under Bond (TIB)

Goods of the types enumerated below when not imported for sale or for sale on approval may be Under Bond (TIB) admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of articles covered in item 15: the period of the bond may not exceed six months and may not be extended.

Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond.

Classes of Goods

Merchandise to be repaired, altered, or processed (including processes which result in an article being manufactured or produced in the United States), provided that the following conditions are met:

  • The merchandise will not be processed into an article manufactured or produced in the United States if the article is (1) potable grain alcohol, distilled spirits, wine, beer, or any dilution or mixture of these; (2) perfume or other commodity containing ethyl alcohol whether denatured or not; (3) a product of wheat.
  • If merchandise is processed and results in an article being manufactured or produced in the United States other than those described above,(1) a complete accounting will be made to the Customs Service for all articles, wastes, and irrecoverable losses resulting from the processing, and (2) all articles will be exported or destroyed under Customs supervision within the bonded period. Valuable waste must also be exported or so destroyed unless duty, if applicable, is paid.

Models of women's wearing apparel imported by manufacturers for use solely as models in their own establishments may require quota compliance.

Articles imported by illustrators and photographers for use solely as models in their own establishments to illustrate catalogs, pamphlets, or advertising matter.

Samples solely for use in taking orders for merchandise may require quota compliance.

Articles solely for examination with a view to reproduction or for examination and reproduction (except photoengraved printing plates for examination and reproduction); and motion-picture advertising films.

Articles intended solely for testing, experimental, or review purposes. including plans, specifications, drawings, blueprints, photographs, and articles for use in connection with experiments or for study. If articles under this category are destroyed in connection with the experiment or study, proof must be presented to satisfy the obligation under the bond to export the articles.

Automobiles, motorcycles, bicycles. airplanes. airships, balloons, boats, racing shells. and similar vehicles and craft and the usual equipment of the foregoing, if brought temporarily into the United States by nonresidents for the purpose of taking part in races or other specific contests. District or port directors may defer the exaction of a bond for a period not to exceed 90 days after the date of importation for vehicles and craft to take part in races or other specific contests for other than money purposes. If the vehicle or craft is not exported or the bond is not given within the period of such deferment, the vehicle or craft shall be subject to forfeiture.

Locomotives and other rail road equipment brought temporarily into the United States for use in clearing obstructions, fighting fires, or making emergency repairs on railroads within the United States, for use in transportation otherwise than in international traffic when the Secretary of the Treasury finds that the temporary use of foreign railroad equipment is necessary to meet an emergency.

Containers for compressed gases, filled or empty, and containers or other articles in use for covering or holding merchandise (including personal or household effects) during transportation and suitable for reuse for that purpose.

Professional equipment, tools of trade, repair components for equipment or tools admitted under this item, and camping equipment imported by or for nonresidents sojourning temporarily in the United States for the nonresident's use, or by an organization represented by the nonresident which is a legally established business in a foreign country.

Articles of special design for temporary use exclusively in connection with the manufacture or production of articles for export.

Animals and poultry brought in to the United States for the purpose of breeding exhibition, or competition for prizes, and the usual equipment therefor.

Theatrical scenery, properties, and apparel brought into the United States by proprietors or managers of theatrical exhibitions arriving from abroad for temporary use by them in such exhibitions.

Works of free fine arts, drawings, engravings, photographic pictures, and philosophical and scientific apparatus brought into the United States by professional artists, lecturers. or scientists arriving from abroad for use by them for exhibition and in illustration, promotion, and encouragement of art, science or industry in the United States.

Automobiles, automobile chassis, automobile bodies, cutaway portions of any of the foregoing, and parts for any of the foregoing, finished, unfinished, or cutaway, when intended solely for show purposes. These articles may be admitted only on condition that the Secretary of the Treasury has found that the foreign country from which the articles were imported allows or will allow substantially reciprocal privileges with respect to similar exports to that country from the United States. If the Secretary finds that a foreign country has discontinued or will discontinue the allowance of such privileges, the privileges under this item shall not apply thereafter to imports from that country.

Relief from Liability

Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However. in the case of articles entered under item 6, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry is filed.

ATA Carnet

ATA stands for the combined French and English words "Admission Temporaire-Temporary Admission." ATA carnet is an international customs document which may be used for the temporary duty-free importation of certain goods into a country in lieu of the usual customs documents required. The carnet serves as a guarantee against the payment of customs duties which may become due on goods temporarily imported and not re-exported. Quota compliance may be required on certain types of merchandise. ATA textile carnets are subject to quota and visa requirements.

A carnet is valid for one year. The traveler or businessman, however, may make as many trips as desired during the period the camet is valid provided he has sufficient pages for each stop.

The United States currently allows ATA carnets to be used for the temporary admission of professional equipment, commercial samples, and advertising material. Most other countries allow the use of carnets for the temporary admission of these goods and, in some cases, other uses of the ATA carnet are permitted. ATA carnets can also be used for transit (in-bond movement of goods) in the United States under the applicable regulations, 19 CFR part 114.

Local carnet associations, as members of the International Bureau of the Paris-based International Chamber of Commerce, issue carnets to their residents. These associations guarantee the payment of duties to local customs authorities should goods imported under cover of a foreign-issued carnet not be re-exported. In the United States, the U.S. Council of the International Chamber of Commerce, located at 1212 Avenue of the Americas, New York, N.Y. 10036, (212) 354-4480, has been designated by U.S. Customs as the United States issuing and guaranteeing organization. A fee is charged by the Council for its service.

ATA carnets can be used in the following countries:

Algeria, Australia, Austria, Belgium, Bulgaria, Canada, Canary Islands, Cyprus, Czech Republic, Denmark, Finland, France, French West Indies, Germany, Gibraltar, Greece, Hong Kong, Hungary, Iceland, India, Iran, Ireland, Israel, Italy, Ivory Coast, Japan, Republic of South Korea, Luxembourg, Malaysia, Malta, Mauritius, Netherlands, Netherlands Antilles, New Zealand, Norway, Poland, Portugal, Romania, Singapore, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Turkey, United Kingdom, United States, Yugoslavia

Egypt and certain other countries have accepted the ATA convention but have not implemented the use of carnets.

As countries are being continuously added to the carnet system, please check with the U.S. Council if a country you wish to visit is not included in the above list.


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