C2 Carrier Bond
C2 (type2); Bonder Carrier, Bonded Warehouse, Container Freight Station, Bonded Cartmen basic info's (C2 Carrier Bond):
Refers to imports or export shipments which have not been cleared by customs. For release of a cargo at a later time or place; also known as “bonded merchandise”.
Cargo is not intended to enter the U.S. commerce. ie; passing through US without paying duties/taxes, shortcut transport to foreign market (for example Mexico to Canada and Etc).
Bond amounts typically range for $50,000 - $100,000 for movement of general cargo and depending on the port/terminal. Only when bond # is issued, you're not a bonded carrier.
Annual premiums are about 3-6% of the bond amount, if your credit is damaged, it can be 7-25% or pay the full amount into trust fund and tie up your money without access capital.
Before applying as Bonded Carrier, you must be Bonded (i.e.; Freight-Broker-Bond / BMC-84 Bond / Trucking Bond) with FMCSA (click here to apply for BMC-84)
FMCSA (Federal Motor Carrier Safety Administration) bond about is $75,000. Normally Annual premium is about 3-6% of $75,000, if your credit is damaged, it can be 7-25%.
As a FMCSA Freight-Broker, your only able to pick-up the cargo from warehouse, after Customs-Released has been issued. All other requires to be as a Bonded-Carrier.
Published info includes, sole proprietor owner/operator's home address, telephone# & email address, if when contact information serves as the business contact information.
Bonded Carrier (In-Bond) are able to transport. Bonded Carrier may not be used for explosives or prohibited cargo.
Immediate Transportation (I.T.) - Class 61; Most commonly use are, transporting to final destination on the Arrival-Notice and to Exam-site with PTT (permit to transport).
Transportation and Exportation (T and E) - Class 62; Comes in to one port and transport to other port for export. (Moving through USA, as short cut to final-destination/foreign country)
Only IT is applies with Duty/Tax/Etc; Ocean/Truck/Rail cargo (QP/WP) are transmitted with ACE/E-Manifest/ABI and QX/WX is for Air cargo transmitted with ACS.
Also, if it's terminal pick-up, you must have terminal pass (ie; Pierpass, Terminal pas, Gate pass, Gate Appointment and Etc), please contact each terminal for details.
SCAC (Standard Carrier Alpha Code) is a unique two-to-four-letter code used to identify transportation companies. To apply for SCAC code (click here).
NMFTA (National Motor Freight Traffic Association) developed the SCAC identification codes in the mid 1960's to facilitate computerization in the transportation industry.
The Standard Carrier Alpha Code is the recognized transportation company identification code used in the American National Standards Institute (ANSI).
ASC (Accredited Standards Committee) and EDI (approved electronic data interchange) transaction sets such as the 856 Advance Ship Notice.
The 850 Purchase Order and all commercial Truck, rail, Sea/Air carrier, vessel and Etc identification is required. tariffs filed with the STB (Surface Transportation Board).
Customs and Border Protection (CBP) use a SCAC for their Automated Commercial Environment (ACE), Automated Manifest (AMS) and Pre-Arrival Processing (PAPS) Systems.
SCACs are required when doing business with all U.S. Government agencies and with many commercial shippers including.
All automobile, petroleum, forest products, chemical industries, suppliers to retail businesses and carriers engaged in railroad piggyback trailer and ocean container drayage.
Carriers who use the Uniform Intermodal Interchange Facilities Access Agreement (UIIA) are required to maintain a valid SCAC.
The petroleum industry uses SCACs in their integrated software programs that expedite the movement of bills of lading, pipeline tickets, product transfer orders and inventory data.
All commercial shippers and receivers utilize SCACs in their freight bill audit and payment systems.
Here a example of In-Bond 7501 form (Immediate Transportation / IT) (Transportation and Exportation / T&E) (Immediate Exportation / IE)
An electronic in-bond application is required for in-bond merchandise transported by ocean, rail and truck. The methods available to submit an in-bond application are the Automated Commercial Environment (ACE) or QP/ WP. QP/WP is an ABI hosted in-bond system that allows all parties, carriers and non-carriers, to submit electronic in-bond applications directly to CBP, as well as report their arrival and export. The ‘‘QP’’ half is the application function, the ‘‘WP’’ half is the arrival/export function. ACE can be used to file the in-bond application in conjunction with advance or arriving manifest information. For in-bond merchandise transported by air, carriers can file the in-bond application also using ACE or QP/WP. (click here for more details)
"QP" has no official definition for the acronym, but, we believed to “quick processing without paper,”
QP/WP is the electronic filing of a CF7512 form or In-Bond document to Customs (CBP). Bonded-Carrier can use QP/WP to move goods In- Bond to Customs Bonded warehouse / CFS warehouse.
CF7512 with barcode shows the merchandise requested to be moved In-Bond has been authorized for movement. And sees status of the merchandise and it helps to automate the arrival process. Basically to track/streamline all shipment.
On November 27, 2017, U.S. Customs and Border Protection (CBP) published a final rule entitled Changes to the In-Bond Process. The final rule adopted, with several changes, proposed amendments to CBP regulations regarding the in-bond process.
The in-bond process allows imported merchandise to be entered at one U.S. port of entry without appraisement or payment of duties and transported by a bonded carrier to another U.S. port of entry or other authorized destination provided all statutory and regulatory conditions are met. At the destination port, the merchandise is entered or exported. The changes in this rule, will enhance CBP’s ability to regulate and track in-bond merchandise and ensure that in-bond merchandise is properly entered or exported.
To assist all parties in understanding the expectations of CBP concerning these changes, CBP is providing guidance in the form of frequently asked questions. CBP will continual to update this document as necessary. Should you have additional questions, please forward them to cscwarehousing@cbp.dhs.gov. Please note that the responses to the FAQs are for informational purposes only and are non-binding. Questions relating to specific facts and circumstances of a prospective transaction can be the subject of a ruling request under Part 177 of the CBP regulations.