June 07, 2007
The in-bond system allows cargo to be transported from the arrival port to another US port prior to appraisal or payment of duties. From there it may either enter into US commerce or be exported. A recent GAO report found weaknesses in Customs & Border Protection’s management of the in-bond system, including inadequate monitoring of in-bond goods. According to the report, CBP does not consistently reconcile in-bond documents issued at the arrival port with documents at the destination port, and in fact one port reported its in-bond transactions at 77% "open."
GAO is recommending that the CBP:
- Collect and use improved information on in-bond shipments to enable better informed decisions
- Assess the systemic problems associated with identifying open in-bonds and take steps to resolve these problems
- Ensure that the compliance measurement system is performed to improve CBP’s in-bond management