T&E bonds

Bonds the word on wooden cubes, cubes stand on a reflective surface, in the background is a business diagram. Business and finance concept

With the introduction of PARS and PAPS a few years back, the chances of having to place a cross border shipment “in bond” has been virtually eliminated. For those new to the industry, years ago, if the broker couldn’t clear a load from the US to Canada, or vice versa, the load was placed “in bond”, and sent to a customs warehouse until such time as the load was cleared by customs.  The usual issue was the payment of duties, and miscellaneous fees.

These days, those types of bonds are a mere memory, but there are other types of bonds you might have to deal with. The most common is a “T&E” bond.  T&E stands for “transport & export”, and is used solely for goods transiting the US between a third country and Canada. Meat loads from the plants in Alberta destined for Mexico, and produce from Mexico destined for Canada travel through the US on a T&E bond.  If the load is from Mexico to Canada, the bond will be opened before you get the paperwork. In addition to the bills and any other associates paperwork, you will get 3 copies of the T&E bond.  When you send the paperwork to the broker to clear the load into Canada, send them a copy of the T&E as well. Before you cross into Canada, you must stop at US customs and present the T&E bond. US customs will likely inspect the trailer to verify the seal is intact, stamp or punch all 3 copies, keep one, and return the other 2 copies to you. You can then proceed to Canada customs, who will clear the load, stamp your ACI and both copies of the T&E, keep one, and return the last copy to you.

During your trip with a T&E load, be sure to check the seal every time you stop. If you noticed the seal has been tampered with in any way whatsoever, do not leave your location and contact your company immediately. Chances are, you will be required to drive to the nearest customs warehouse, where the trailer will be unloaded and inspected to ensure nothing has been removed or added since the bond was opened.

T&E bonds are also used for loads going to or coming from overseas, either by ship or aircraft, and the process is the same.