Meaning
A financial guarantee submitted to customs authorities allows goods or manufacturing equipment to enter a country duty-free on the condition that they will be exported within a specified timeframe. Utilizing a temporary import bond is a common practice when shipping high-value injection moulds across borders to a custom moulder for a specific production run. This bond avoids the high cash-flow burden of paying import duties on tooling that will not remain permanently in the country.
Customs Procedure
Importers must register the steel mould’s precise specifications, including serial numbers, weight, and value, with the customs authority upon entry. The bond, typically secured through a surety company, guarantees that the importer will pay double the standard duty plus penalties if the mould is not exported or destroyed under customs supervision before the expiration date, which is usually one year. This procedure allows multinational companies to move tooling quickly between regional manufacturing hubs to balance capacity or handle surges in demand.
Once the mould is exported and the exit documentation is verified by customs, the bond is cancelled.
Financial Penalty
Failure to export the mould before the bond expires results in the automatic forfeiture of the bond and the imposition of heavy fines. This penalty can exceed the value of the import duties themselves, making careful tracking of expiration dates essential for the logistics team. The system prevents companies from permanently importing equipment under the guise of a temporary run.
Tooling Release
When the production run is complete, the mould must be packaged and cleared through customs to release the bond. This release frees up the company’s financial capacity for other tooling shipments. It completes the temporary import cycle.
