Meaning
Customs procedures allowing the duty-free entry of goods intended for re-export within a specified timeframe facilitate international manufacturing and repair. For molding facilities, a temporary import under bond enables the importation of expensive foreign molds or test resins without paying customs duties or taxes. The importer must post a bond with customs as a guarantee that the goods will be re-exported within the allowed period.
This system reduces the cash flow burden on the molding processor.
Bond Management
The posted bond is usually equal to double the estimated duties and taxes that would be owed on the imported goods. If the mold is not re-exported before the deadline, the bond is forfeited to the government. This makes tracking the export date of the tooling critical for the company’s finances.
Tooling Application
Molding processors use this method to import customer-owned molds for short-run production or testing. Once the parts are produced and shipped, the mold can be returned to the owner or sent to another country. This allows molders to compete for international projects without paying high import fees.
Record Keeping
Strict documentation is required to prove that the imported mold has been re-exported. This includes customs forms, shipping invoices, and bills of lading. Failure to maintain these records can result in heavy fines and the forfeiture of the bond.
