CBP Ends Export Consolidator Bond Program in Miami, Gives 1-Year Transition Period
CBP is ending a special bond program for export consolidators at the Miami and Port Everglades ports of entry, it said in a notice. The agency is giving participants in the In-Bond Export Consolidator (IBEC) Program a one-year grace period, until Feb. 11, 2023, to “transition their facility status to either a customs bonded warehouse, container freight station, foreign trade zone, or a facility operated as a non-vessel operating common carrier, depending on their business needs, and also obtain the appropriate bond(s).”
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CBP will no longer accept new applications for new IBEC bonds, designated as Activity Code 14 on CBP Form 301, as of Feb. 11, 2022, it said, though IBEC bonds executed prior to that date may continue to be used until the end of the one-year grace period. The bonds cover “the consolidation, cartage, transportation, and exportation of in-bond merchandise.” The program was established in 1986, and there are currently 194 active IBEC bondholders, CBP said.
“CBP continues to have concerns with maintaining procedural and regulatory control over merchandise destined for export to ensure the protection of the revenue of the United States and compliance with the laws and regulations enforced by CBP. Specifically, the IBEC program has made it more challenging for CBP to ensure that the custody and manipulation of merchandise complies with regulations such as 19 CFR 19.11(e) and 125.41(a),” the agency said. “For these reasons, CBP is terminating the IBEC program and IBEC bond.”
“CBP has begun working with all IBEC program participants to guide them as they transition into one of the alternate facility types and continues to conduct outreach to IBEC program participants to ensure the trade community's continuity of operations,” CBP said.