In Bond Shipment: When Your Shipment Goes "In Bond to Canada"

What does In-Bond shipment mean?

An in-bond shipment is an imported or exported shipment that has yet to be cleared by Customs. The in-bond shipment process allows for the goods to be moved or stored by the government, even if they have not been obtained approval by Customs.

For a shipment entering Canada, this means the freight remains under customs control. The carrier may be authorized to move it beyond the border to an approved location, but it has not been released for delivery to you. The government does not normally transport or store the freight itself.

It can be a planned arrangement or happen because the shipment could not be released at the border. Moto’s customs clearance page explains the clearance services available.

How does a shipment move in bond to Canada?

The carrier declares the shipment in bond on its ACI eManifest and presents a Paper A form to the border officer.

CBSA then authorizes movement to a specified bonded sufferance warehouse or another CBSA office to await release. The carrier must wait for the customs broker to file a formal entry and for CBSA release before the goods can leave for delivery to the receiver.

This process requires a bonded highway carrier.

Important Note: If a freight carrier’s code begins with either a one or a seven it is not considered a bonded carrier and, therefore, cannot declare in-bond shipments to Canada.

Why did your shipment go in bond?

If you expected the freight to clear at the border, ask which requirement prevented release. The existing paperwork, broker status or an inspection may explain what happened.

• Your shipment was selected for a customs inspection. Ask whether an inspection is pending and whether anything is required from you.
• Your customs broker is missing information needed to submit the shipment. Get a specific list of what is missing so you can provide it.
• Your broker has not submitted the information or is waiting for payment on the account. Confirm whether the obstacle is the entry itself, account setup or an outstanding payment.
• The carrier or broker did not receive the commercial invoice. Send it to the parties handling the shipment and confirm they received it.
• The carrier received the wrong broker details or did not submit the shipment information before arrival. Confirm the appointed broker and make sure the carrier and broker are working from the same shipment references.

Being in bond does not, by itself, tell you which of these happened. Find out the actual reason before sending documents again or asking a different party to take over.

What happens after the shipment goes in bond?

For an unplanned move into a sufferance warehouse, the handling can involve these steps:

• The truck parks in the customs compound instead of proceeding directly to the receiver or company dock.
• The carrier creates an A8A bond document and waits at the customs office for processing.
• The sealed trailer reports to the designated sufferance warehouse.
• The warehouse unloads the freight and segregates the goods awaiting release.
• The carrier re-submits the shipment’s in-bond information to the customs broker.
• The freight remains at the warehouse while inspection or clearance is outstanding. Storage charges can apply.
• Once released, the freight is picked up and transportation to the receiver is arranged.

These are additional handling steps between crossing the border and completing delivery. An authorization to move in bond is not the same as customs release, and customs release is not the same as a confirmed delivery appointment.

What should you do if your freight is waiting in bond?

Start with the carrier to confirm where the freight is, its cargo control number and the reason it has not been released. Then contact your appointed customs broker to establish what needs to happen next.

Have your shipment reference, commercial invoice, bill of lading, importer details and any message about the hold ready. Ask the broker:

• Have you received the shipment information and submitted the entry?
• Is anything missing from us, the shipper or the carrier?
• Is account setup or payment preventing the entry from proceeding?
• Is CBSA requesting an inspection or further information?

Answer the specific request and confirm receipt. Sending the same incomplete paperwork to more people does not resolve the missing information.

Keep the carrier informed as the broker works through release. Once release is confirmed, ask the carrier about pickup from the warehouse and the revised delivery arrangements.

What costs can an in-bond shipment add?

Additional costs can come from customs processing, driver waiting time, warehouse handling, storage and the pickup and delivery after release. The amount depends on the shipment, location and work required.

Ask the carrier which charges have already been incurred and which may continue while the freight waits. There is no single fee or release timeline that applies to every shipment.

Who to contact at Moto

Moto is a bonded carrier. Our customs department deals with customs brokers and border officials daily.

If Moto is handling your shipment, call 1-604-757-2441 with your shipment reference so our team can review its status and what is outstanding.