# CUSTOMS AND BORDER PROTECTION DIRECTIVE

**ORIGINATING OFFICE:** FO:TCF **DISTRIBUTION:** S-01

**CBP DIRECTIVE NO.** 3240-036A

**DATE:** AUGUST 7, 2003

**SUPERSEDES:** 3240-036,1/7/88

**REVIEW DATE:** AUGUST 2006

**SUBJECT: [IN-BOND PROCEDURES AND CUSTOMS FORM 7512 PREPARATION
INSTRUCTIONS]{.underline}**

1 PURPOSE. The purpose of this directive is to provide guidelines for
the preparation of Customs Form (CF) 7512, to ensure the enforcement of
in-bond regulations by the Bureau of Customs and Border Protection (CBP)
officers and to improve control over the movement of in-bond
merchandise. In order to improve the information collected for
enforcement targeting of in-bond merchandise this directive provides
instruction to all concerned parties on the proper preparation of CF
7512. The attachment to this directive clarifies what information must
be furnished to properly file a transportation in-bond entry on the CF
7512. This directive will also provide direction to CBP officers on
processing procedures for the CF 7512 and its electronic alternatives.

2 POLICY. It is the policy of CBP that movement in-bond performed on a
paper

CF 7512 between CBP ports or within CBP port limits for the purpose of
exportation is performed in a uniform manner that improves the control
over this merchandise. In addition, supply chain security considerations
require that CBP maintain tighter control over the movement of in-bond
merchandise presented on a CF 7512. Two important elements necessary to
achieve this goal are improving data quality and ensuring electronic
tracking of in-bond merchandise. Accurate input of high quality data
into the automated in-bond system before the merchandise is allowed to
proceed will increase the level of control that CBP exercises over the
merchandise.

3 BACKGROUND.

1.  In-bond movement of merchandise usually takes place as an entry for
    Immediate Transportation without appraisal (IT), an entry for
    Transportation and Exportation (T&E), or an entry for Immediate
    Exportation (IE) and is documented on a CF 7512. Customs Directive
    3240-036 containing instructions for properly completing a CF 7512
    for transportation in-bond was previously supplied to personnel for
    use as a guideline. This CD was abolished and not replaced. The
    instructions have continued to be followed by all concerned. In 1998
    CBP initiated in the Automated Commercial System (ACS) a tracking
    and audit system known as "Tin Man". It was designed to provide
    "real time" tracking of in-bond shipments from origin to destination
    including entry and exportation. It also provided for a compliance
    measurement system of random examinations and post audit reviews to
    ensure compliance. Current processing guidelines allow ports to
    input minimal information to create an in-bond record in ACS. This
    record is often created after the shipment is authorized to move by
    a CBP officer.

2.  A review of CBP guidelines and regulations for authorizing movement
    in-bond and for preparing the CF 7512 has been conducted. The
    instructions in this directive for the proper completion of CF 7512
    must be followed to ensure that proper liability and accountability
    will be noted on the CF 7512 and maintained on in-bond merchandise.

4 AUTHORITY. 19 U.S.C. 1552 and 1553, 19 CFR Part 18

5 RESPONSIBILITIES.

5.1 Area and Port Directors are responsible for carrying out the
instructions in this directive and for disseminating its contents to CBP
personnel, warehouse proprietors, customhouse brokers, and importing and
bonded carriers in their area of jurisdiction.

5.2 Interim Directors, Field Operations are responsible for monitoring
compliance with the procedures and assuring uniformity in their
application.

6 PROCEDURES

6.1 CBP officers reviewing CF 7512 documents at the port of origin must
ensure that all required information is furnished and correct at the
time of presentation to CBP. If the CF 7512 is not properly prepared,
corrective action must be taken, including rejection of the document, if
necessary. Instructions for proper completion of a CF 7512 are attached.
Attachment A consists of an itemized list citing the title of each field
on a CF 7512 with a description of the field's required minimum content.

6.2 Corrections or amendments to information on a previously filed CF
7512 must be presented to CBP on a new CF 7512, annotated "AMENDMENT",
bearing the same

in-bond serial number as the original, and highlighting the requested
corrections or amendments. This CF 7512 will be accompanied by a request
in writing, on letterhead, from the filer, broker or other interested
party that created the original documents, describing the corrections.
Documentary evidence to substantiate the change (bill of lading, airway
bill, invoice, etc.) must be submitted with the CF 7512 and change
request. CBP officers may accept the corrected/amended CF 7512 at any
point or port during the in-bond movement provided the shipment is
physically located at that port and available for examination.

6.3 CBP offices will input all in-bond transactions into the CBP
automated system prior to allowing the movement of the merchandise. This
will involve the input of the information corresponding to the mandatory
fields in the CBP automated system. This will allow "real time" tracking
of all in-bond shipments and help to reduce system errors.

6.4 At origin, in addition to mandated "Tin Man" examinations CBP
officers will inspect in-bond shipments as needed to verify the
information provided on the CF 7512 and to perform enforcement
inspections.

6.5 For in-bond shipments on CF 7512 transported between ports (T&E and
IT), CBP officers will input an arrival notification in CBP automated
system as soon as possible after the carrier's arrival notification.
This will ensure that the requirement for presentation of in-bond
documentation within 2 working days of arrival is met and start the
General Order (G.O.) clock.

6.6 At arrival at the port of in-bond destination, in addition to
mandated "Tin Man" examinations CBP officers will inspect in-bond
shipments as needed to verify the information provided on the CF 7512
and to perform enforcement inspections.

6.7 For exportation of in-bond merchandise presented on a CF 7512 (T&E
and IE), the merchandise should be presented to CBP for export
certification. The certification of export in the CBP automated system
shall not take place until the merchandise is physically located where
exportation is reasonably assured. For example at seaport, airport and
rail locations the merchandise should be under the physical control of
the exporting carrier and for land border locations, the merchandise
should be at the place of exportation.

6.8 At exportation, in addition to mandated "Tin Man" examinations CBP
officers will inspect in-bond shipments as needed to verify the
information provided on the CF 7512 and to perform enforcement
inspections.

7 MEASUREMENT. Not Applicable

Assistant Commissioner

Office of Field Operations

Attachments

ATTACHMENT A

INSTRUCTIONS FOR THE PREPARATION OF THE CUSTOMS FORM 7512 FOR
TRANSPORTATION IN-BOND\
\
Item 1 - \"Entry Number, Port and Date\"\
\
Whenever merchandise, which has been entered previously (in-bond,
consumption, warehouse, etc.), is entered for any type of in-bond entry,
the immediately preceding entry information must be supplied with the
date of that entry. The standard HTSUS Schedule D port code is used
instead of the port name.\
\
Item 2 - \"Entry Number and Class of Entry\"\
\
The in-bond serial number (9-digit number assigned by blocks by local
CBP port) and the entry class code (61, 62, 63) must be recorded in this
area with the approved abbreviation for the entry type (IT, T&E, IE,
WDTE etc). Immediately below the box containing this information, show
the appropriate foreign entry number with foreign document type (such as
"Pedimento") when required. (see ATTACHMENT B)

Item 3 - \"District/Port Code No.\"\
\
The district/port code shown in the HTSUS Schedule D must be used for
the port where the in-bond entry is being presented.\
\
Item 4 - \"First U.S. Port of Unlading\"\
\
The \"first U.S. port of unlading\" is the first U.S. port of arrival
from foreign, where the merchandise is off-loaded from the importing
carrier.\
\
Item 5 - \"Port of\"\
\
This is the name of the port corresponding to the port code in Item 3
where the in-bond entry is being presented.\
\
Item 6 - \"Date\"\
\
This is the date of entry preparation. Since an in-bond entry can be
prepared before the date of entry presentation and/or acceptance and
prior to the actual arrival of the importing conveyance, this date
should not be used for duty assessment purposes.\
\
Item 7 - \"Entered or Imported By\"\
\
\"Entered or imported by\" identifies the party who imported the
merchandise (importer or consignee) or the party who presents the
in-bond entry to CBP if other than the importer or consignee. This could
be the importing carrier or the bonded carrier or a Customhouse broker
acting as the agent for the importer, consignee, importing carrier, or
the bonded carrier. However, 19 CFR 18.11(b)(3) authorizes any person
deemed by the Port Director \"to have a sufficient interest in the
merchandise for that purpose\" to\
make an in-bond entry. The person signing Item 30 \"entered or withdrawn
by\" must be an authorized agent or employee of the party shown in this
item. This party's Name, Address, City, State and appropriate
identification numbers should be included in the spaces provided.\
\
Item 8 - \"In-Bond Via\"\
\
This designates the bonded carrier who will be liable for the proper
movement, handling, and safekeeping of the merchandise once the in-bond
movement is initiated. (The requirements for initiating the in-bond
movement will be described in Items 32, 33, 36, and 37.) The bonded
carrier's Importer/IRS number and name shall be included on this line.
If the person making entry is not the bonded carrier shown in this
block, the person making entry must be an authorized agent and present
on demand, proof of it from the carrier.

Item 9 - \"District Director of Customs at\" or "Customs Port Director"\
\
This item identifies the intended destination port. Unless there are
restrictions or prohibitions on diversion an in-bond shipment may be
diverted to any CBP port without prior CBP permission. These
restrictions and prohibitions as outlined in 19 CFR 18.5 include:

-   A new in-bond entry is required after an in-bond shipment (in its
    entirety or split) has been delivered to the port of destination;

-   Shipments under restriction or prohibition under quarantine and
    regulation of the Dept. of Agriculture may not be diverted without
    permission of that agency;

-   Textile or textile product shipments Subject to Sec. 204,
    Agriculture Act of 1956, may not be diverted without prior written
    permission of the Port Director at the port of origin;

In those instances where diversions are prohibited or restricted, it
should be clearly noted on the face of the in-bond entry (Item 28).\
\
Item 10 - \"Final Foreign Destination\"\
\
\"Final foreign destination\" must be completed for all exportation
entries. At a minimum, the destination shown on the commercial shipping
documents (bills of lading or air waybills) must be shown. If
exportation to more than one foreign destination is planned,\
provided such exportation is not prohibited, the term \"various\" can be
used. The 5-digit Schedule K or "Special K" code (for Mexico and Canada)
and the name of corresponding foreign destination shall be placed here.

Item 11 - \"Consignee\"\
\
This should identify the consignee named on the bill of lading, air
waybill, invoice, etc. The name and address of the consignee shall
appear in this space. The respective document may be requested to verify
information contained on the CF 7512. For export shipments where the
bill of lading, air waybill, invoice, etc. information does not include
an actual consignee, the consignee for in-bond purposes may be the party
who will arrange for the disposition of the shipment at the port of
destination (Container freight station, freight forwarder, etc.).\
\
Items 12 through 18 - \"Manifest Information\"\
\
The information provided here serves to identify the shipment in terms
of the inward foreign manifest of the importing carrier. This
information is mandatory if the shipment was originally imported by
vessel. The date of importation shown in Item 17 is the date of arrival
of the importing conveyance in the United States and with vessels, it is
the date in which the vessel arrives within the limits of a port in the
United States with intent to discharge (19 CFR 101.1).

Item 19 - \"Exported From\"

If the country of exportation is different from the \"foreign port of
lading\" (Item 12) and this information is available to the party
preparing the entry (Item 7), it should be shown. Otherwise, the country
of foreign port of lading should be shown. This information may be
available on the bill of lading, air waybill, invoice, etc. The relevant
document may be requested to verify information contained on the CF
7512.\
\
Item 20 - \"Exportation Date\"\
\
This is the date the shipment was exported from the foreign port of
lading.\
\
Item 21 - \"Goods Now At\"\
\
The actual location of the goods at the origin port must be shown. This
is essential to ensure proper CBP control over the disposition of the
shipment. This information should include the FIRMS code when
applicable.\
\
Item 22 - \"Marks and Numbers\"\
\
This is a listing with sufficient exactness to serve the legitimate
needs of CBP. This should be the same information as is supplied on the
inward foreign manifest. For containerized shipments, the container
number and the commercial seal number must also be shown.\
\
Item 23 - \"Description and Quantity\"

For all in-bond shipments, quantities must be shown in terms of the
smallest external packaging unit. Any intermediate packaging involved
(e.g. unit load devices, containers, pallets, etc.) must also be shown
(example: 144 cartons on 12 pallets).

Under the regulations (19 CFR 18.2), the merchandise shall be described
on the CF 7512.

-   Terms such as \"general merchandise", "Freight All Kinds" or "FAK"
    are not acceptable. For express consignment in-bond shipments a
    rider or abstract manifest may be attached which describes the
    commodities with their associated marks and numbers. If a rider is
    attached, the total number of packages must be shown in this block
    (e.g., 10 containers containing 4,578 packages as per attached
    manifest). For multiple commodities on a single bill that exceed the
    space limitations, the CF 7512A "Continuation Sheet" shall be used
    for description.

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-   The terms \"said to contain\" and/or \"STC\" are unacceptable. The
    term \"shippers load and count\" or \"SLAC" when used as a qualifier
    is acceptable for house-to-house or house-to-pier container
    shipments.

Under the regulations (19 CFR 18.11), IT movements have more stringent
description requirements.

-   For [all]{.underline} IT movements the merchandise shall be
    described in such detail as to enable the Port Director to estimate
    the duties and taxes, if any, due. The Port Director may require
    evidence to satisfy him of the approximate correctness of the value
    or quantity stated in the entry.

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-   Merchandise that is subject to detention by other Federal agencies
    shall contain sufficient description to enable the representative of
    concerned agency to determine the contents of the shipment.

-   Merchandise subject to agricultural quarantine shall be forwarded as
    an IT only under written permission or regulations governing
    agricultural quarantine.

-   Textiles and textile products subject to 7 USC 1854 shall be
    described in such detail as to allow the Port Director to estimate
    any duties or taxes due. The Port Director may require evidence of
    the approximate correctness of:

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-   The value and quantity stated in the entry (e.g. 14 cartons, 2 dozen
    per carton).;

-   Detailed description of the textiles or textile products including
    type of commodity and chief fiber content (e.g., men\'s cotton jeans
    or women\'s wool sweaters);

-   Net weight of the textiles or textile products (including immediate
    packing but excluding pallet);

-   Total value of the textiles or textile products;

-   Manufacturer or supplier;

-   Country of origin;

-   Name(s) and address(es) of the person(s) to whom the textiles and
    textile products are consigned;

-   HTSUS number (when available).

Item 24 - \"Gross Weight\"\
\
Gross weight can be shown in either pounds or kilograms and must be
identified as pounds (l) or kilograms (k).\
\
Item 25 - \"Value\"\
\
Actual value information is to be supplied, except when it is not
readily available to the party preparing the entry (Item 7). In this
case, estimated value information may be used and must be indicated as
estimation. Actual value information must be supplied for any type of
in-bond warehouse withdrawal.\
\
Item 26 and 27 - \"Rate\" and \"Duty\"\
\
Duty rate and duty amount must be supplied for all types of in-bond
warehouse withdrawals. It is not required for any other type of in-bond
entry.\
\
Item 28 - Open Area\
\
This is a free-form area for recording all additional information for
which there is no specific block on the form itself. All special
conditions affecting a specific in-bond entry shall be recorded here
(e.g., warehouse entry status, other agency requirements, restrictions
or prohibitions on diversions, "Quantity Concurred" stamp and any
additional or alternate bond coverage such as an exportation bond or
instrument of international traffic (IIT) bond). In the case of
merchandise being exported because entry has been prohibited by any
Government agency, that fact shall be clearly noted in this space.\
\
Item 29 - \"G.O. Number\"\
\
When merchandise, which is unentered, is withdrawn from General Order,
the General Order ledger number would be supplied in this item. This
line also contains a check box that identifies if merchandise is
withdrawn for vessel supplies.\
\
Item 30 - \"Entered or Withdrawn By\"

This item records the signature of the authorized agent for the party
identified in Item 7. This signature constitutes the formal presentation
of the entry and certifies to the completeness and accuracy of the
information supplied as well as to the existence of\
all required bond coverage. This signature may be an electronic or
facsimile signature for all in-bond shipments recorded on a CF 7512.\
\
Item 31 - \"For the District Director\" or "For the Port Director"\
\
This item records the acceptance of the in-bond document as an entry by
CBP. Since the date shown in Item 6 (as described above) is often
different from the date of entry presentation and acceptance, it is
necessary that, in addition to the CBP officer\'s signature, the date of
entry acceptance be recorded here when the date of entry acceptance
differs from the date shown in Item 6. When no date is shown here, the
date shown in Item 37 will be used as the date of entry acceptance. A
CBP perforation or other stamp with date, time and location may be
substituted.\
\
Items 32 and 33 - \"Attorney or Agent of Carrier\"\
\
This records the signature of the authorized agent of the bonded carrier
identified in Item 8 above. The typed or printed name of the person
signing shall also be included. This signature constitutes the
acceptance of the liability for the in-bond shipment by the bonded
carrier and, when CBP concurs (Item 36 and 37 described below),
constitutes the bonded carrier\'s assumption of liability. . If the
person making entry is not the bonded carrier shown in this block, the
person making entry must be an authorized agent and present on demand,
proof of it from the carrier. This proof may be on file at a central
office and a photocopy may be presented. This signature may be an
electronic or facsimile signature for all in-bond shipments recorded on
a CF 7512.

Item 34 - \"Port\"\
\
The U.S. destination and/or exportation port is recorded here. This is
part of the certificate of lading for arrival or exportation. A CBP
perforation or other approved stamp with date, time and location may be
substituted.\
\
Item 35 - \"Seal Numbers\"\
\
CBP in-bond seal numbers, commercial seal numbers, or other Federal
agency seal numbers are recorded here. If in-bond labels are used, or if
sealing or labeling is waived, this would also be noted here.\
\
Items 36 and 37 - \"Inspector\" and \"Date\"\
\
The signature of the CBP officer who authorizes the initiation of the
in-bond movement and the date of this authorization are recorded here. A
CBP perforation or other approved stamp with date and location may be
substituted. This date is used to determine the start of the time limit
for completion of the in-bond movement itself. Normally, this is done at
the time the agent of the bonded carrier signs for the shipment (Items
32 and 33) and assumes liability under the terms of the applicable
carrier\'s bond.

If, at the time the bonded carrier attempts to take possession of the
shipment, there is a difference between what the initial carrier or
custodian and the bonded carrier believe to be the quantity and/or the
condition of the merchandise, these differences must be resolved,
reported to CBP, and any necessary changes or notations to Item 23 made
prior to the initiation of the in-bond movement. The \"Quantity
Concurred\" stamp could be affixed in Item 28.

Items 38 through 42 - \"Export Verification\"\
\
These items are only used when exportation is involved. Completion of
these items by the appropriate CBP officer serves as certification of
export reporting by the carrier and relieves the bonded carrier of its
liability related to export reporting. It does not relieve the carrier
from providing and complying with additional export related requirements
such as the production of landing certificates, submission of SEDs, etc.

[Back of Form (Note- The back of the form may be on a second page as
needed)]{.underline}

Items 43 through 45 - \"Record of Cartage or Lighterage\"\
\
These items constitute assumption (Item 44), authorization (Item 43),
and discharge (Item 45) of the bonded carrier or cartman\'s liability
for the within port movement of merchandise covered by an in-bond entry.
This can occur prior to or after the movement of a shipment between
ports by a bonded carrier or independent of such movement (i.e., when an
immediate exportation entry is involved).\
\
Item 46 - \"Certificates of Transfer\"\
\
This item is used to document and record the transfer of merchandise
from one sealed conveyance to another. It is normally used when the
original conveyance is sealed with commercial seals. It can also be used
when CBP in-bond seals or other Federal\
agency seals are involved if the carrier wishes to document and record
such transfers in order to support its liability limitations.\
\
Item 47 - \"Inspected\"\
\
This item is used when the transfer (Item 46) is done without CBP
involvement or supervision, and subsequent to such transfer, CBP
verifies the new seals. This item could also be used to record the
condition of seals (either CBP, commercial, or other Federal agency)
anytime they are inspected by a CBP officer.\
\
Item 48 through 50 - \"Record of Disposition\"\
\
These items can be used to record the disposition of the merchandise on
the in-bond entry. This information can be, and usually is, recorded on
the face of the entry (Item 28).

ATTACHMENT B

The following ports are required to place the foreign entry number and
document type on the CF7512 in the designated space. (See ATTACHMENT A,
Item 2)

+----------------------+----------------------+-----------------------+
| ## Port              | ## In-bond type      | ## Foreign Document   |
+----------------------+----------------------+-----------------------+
| El Paso TX           | IE                   | Pedimento             |
+----------------------+----------------------+-----------------------+
| Laredo TX            | IE                   | Pedimento             |
+----------------------+----------------------+-----------------------+