Background

U.S. Customs and Border Protection has announced the termination of the In-Bond Export Consolidator program and the associated bond (IBEC bond) implemented at Customs District 52 (Miami).

For more information on utilizing in-bond capabilities or responding to in-bond enforcement measures, please contact Lenny Feldman at (305) 894-1011.

CBP states that the IBEC program was established as a pilot in 1986 to resolve conflicts between customs regulations and a practice whereby non-vessel-operating common carriers, non-aircraft operating common carriers, exporters, and other freight consolidators would receive individual shipments into their facilities for consolidation prior to exportation. In 1998, in an effort to maintain procedural and regulatory control over the bonded freight for export, Customs created the IBEC bond to cover the consolidation, cartage, transportation, and exportation of in-bond merchandise in the agency’s custody. Today the IBEC bond is also known as the Activity Code 14 bond and there are 194 active IBEC bond holders operating within the Miami Seaport and Port Everglades ports of entry.
However, CBP is now terminating the IBEC program because it has made it more challenging to ensure that the custody and manipulation of merchandise complies with regulations such as 19 CFR 19.11(e) and 125.41(a).

IBEC program participants who intend to continue their in-bond export consolidation operations have until Feb. 11, 2023, to transition their facility status to a customs bonded warehouse, container freight station, foreign-trade zone, or facility operated as an NVOCC and obtain the appropriate bond(s). IBEC bonds executed prior to Feb. 11, 2022, may continue to be used to secure activities until Feb. 11, 2023.

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