What Is an IT Bond (Immediate Transportation Bond)? A Guide for Canadian Importers

When a shipment enters the US at one port but needs to travel inland before it can clear customs, CBP requires a specific type of surety bond: an Immediate Transportation bond, or IT bond.

This guide explains what an IT bond is, how it works, how it differs from a T&E bond, when Canadian shippers encounter one, and what to expect on costs.

What Is a US Customs IT Bond?

An IT bond (Immediate Transportation bond) is a surety bond that allows imported goods to enter the US at one port and travel to a different inland port for formal customs clearance, without paying duties at the port of entry. CBP holds the bond as a financial guarantee that duties will be paid, or that the goods will be accounted for, at the destination port.

Three parties are involved in any customs bond:

• The principal: the importer or carrier responsible for the goods
• The surety: the bonding company that issues the financial guarantee
• CBP: the obligee, which holds the bond and can make a claim if duties go unpaid

If formal entry is completed at the inland port and duties are paid, the bond is discharged. If neither happens, CBP can claim against the bond for the full value of duties owed.

IT bonds are one of several CBP bond types. The other type covered in this guide is the T&E bond, which applies when goods transit the US for export rather than staying.

How Does an IT Bond Work?

The bond authorizes a carrier to move goods from the port of arrival to a designated inland port. It is the financial guarantee to CBP that the goods will not be diverted or go missing during transit.

The process, step by step:

1. Goods arrive at a US port of entry (a seaport, land border crossing, or airport)
2. An IT entry is filed with CBP: the shipment is assigned an IT bond and gets authorization to move inland
3. The carrier moves the goods, bonded, to the designated inland port: the goods cannot be released to the consignee until formal entry is completed
4. Formal entry is filed at the destination port: duties, taxes, and fees are calculated and paid
5. The bond is discharged once CBP confirms the goods have been properly entered

A licensed customs broker typically handles the IT entry filing and coordinates with CBP at both ports. A&A's US customs brokerage services cover this process for Canadian businesses shipping into the US.

IT Bond vs T&E Bond: What's the Difference?

An IT bond covers goods moving to another US port for formal entry. The goods stay in the US and US duties apply at the inland port. A T&E bond covers goods transiting the entire US for export to a third country, with no US duties owed. A combined IT&E bond covers either outcome, with duties applying only if the goods remain in the US.

The three types in plain terms:

• IT (Immediate Transportation): Goods move to another US port for formal customs entry. US duties are owed at the inland port once entry is complete.
• T&E (Transportation and Exportation): Goods transit through the US and exit to a third country. No US duties are owed.
• IT&E (combined): Covers either outcome. US duties apply only if the goods ultimately remain in the US.

Canadian shipping examples:

IT bond: A Canadian manufacturer's cargo arrives at the Port of Seattle by sea, but the importer's broker operates out of Chicago. CBP authorizes an IT bond, the carrier moves the goods to Chicago, and formal entry is filed there. US duties are paid at the Chicago port.

T&E bond: A Canadian company ships goods through the US to a customer in Mexico. The shipment crosses into the US at Detroit, transits south through Texas, and exits into Mexico. A T&E bond covers the full transit, and no US duties apply.

When Do Canadian Importers Need an IT Bond?

Canadian businesses usually encounter IT bonds when CBP diverts a shipment to an inland port. In most cases, it is not something the importer requests. It is triggered by routing, port capacity, or examination requirements.

Common scenarios:

• A smaller US border crossing or seaport lacks the staff or facilities to process a formal entry
• CBP routes the shipment to a specialized examination facility for agricultural inspection, contraband screening, or quota verification
• The importer's customs broker is licensed at an inland port rather than the port of arrival
• The carrier does not hold the bonding authority required to complete clearance at the arrival port

One practical point: when a shipment goes in-bond, the carrier typically charges in-bond movement fees. These are separate from duties and bond premiums, and the importer of record is responsible for paying them. On frequent cross-border shipments, they add up.

For more on bonded carrier requirements and what carriers need to move goods in-bond, see A&A's carrier resource center.

If you are importing goods into the US from Canada regularly, knowing in advance which port your customs broker is licensed at can reduce the chance of an unexpected in-bond diversion.

How Much Does a US Customs IT Bond Cost?

IT bonds are typically single-transaction bonds. The cost depends on the bond amount CBP requires, which is based on the value of duties and taxes owed on the shipment. Bond premiums generally run 0.5 to 1% of the required bond amount.

In practice, most cross-border shipments do not require the importer to purchase a separate IT bond. The carrier's own continuous bond, or the customs broker's continuous bond, typically covers the in-transit movement. What the importer pays separately are the carrier's in-bond movement fees.

For importers who ship to the US regularly, a continuous importer bond is the more practical structure. It covers all US entries for 12 months and typically starts around $500 to $600 per year. For any company clearing more than a few US shipments annually, continuous coverage is more cost-effective than single-entry bonds.

The right bond structure depends on your shipment frequency, the value of goods, and how your carrier is bonded. A&A can help you work out the right arrangement. Reach out for a quick consultation.

Frequently Asked Questions

What is an IT bond in customs?

An IT (Immediate Transportation) bond is a CBP surety bond that allows imported goods to move from a US port of arrival to a designated inland port for formal customs entry and clearance, without paying duties at the point of entry. The bond guarantees CBP that duties will be paid once formal entry is completed at the inland port.

Is an IT bond the same as a customs bond?

No. An IT bond is one specific type of US customs bond. Other types include the continuous importer bond (covers all US entries for 12 months), single-entry bonds, and T&E bonds. When most importers refer to a "customs bond," they mean the continuous importer bond used for routine import entries.

Do I need an IT bond to import into the US from Canada?

Most Canadian importers use a continuous importer bond or a single-entry bond for routine US imports. An IT bond is required specifically when goods must move from the port of entry to a different inland port before being formally cleared. Your US customs broker will determine the correct bond type based on your shipment routing and the port of entry.

Working with A&A on US Customs Bond Requirements

For Canadian businesses, IT bonds are not something you typically request. They are triggered by how CBP and carriers route your shipment. Knowing what they are, and what fees to expect, prevents surprises when your broker tells you a shipment has gone in-bond.

A quick reference:

• IT bond: goods move to another US port for formal entry; US duties apply at the inland port
• T&E bond: goods transit the US for export; no US duties owed
• Continuous importer bond: covers all routine US import entries for 12 months

A&A Customs Brokers handles US customs entries, IT bond filings, and cross-border compliance for Canadian businesses shipping into the US. If you have questions about your current bond structure or an upcoming shipment, contact us to discuss your requirements.