Marine equipment often needs to enter the United States temporarily—for demonstrations, repairs, testing, exhibitions, professional use, or short-term projects. The Temporary Importation under Bond (TIB) program allows duty-free temporary imports, avoiding permanent duty costs on equipment that won’t remain in the U.S. This guide explains how TIB works for marine equipment, building on the entry procedures covered in our Maritime Customs Documentation and Vessel Import Documentation articles.
Understanding Temporary Importation Under Bond
TIB provides conditional duty-free treatment for qualifying temporary imports. Goods enter the U.S. without payment of duty under a bond guaranteeing they will be exported or destroyed within the allowed period. If conditions are met, no duty is ever paid. If conditions aren’t met, duty plus potential penalties become due.
The bond requirement guarantees duty payment if goods aren’t properly exported. Bond amount typically equals 110% of estimated duties. Time limits are generally one year from date of importation, with extensions available in many cases up to three years total.
TIB Categories for Marine Equipment
Several TIB provisions commonly apply to marine equipment:
HTS 9813.00.05 covers articles for repair or alteration—foreign equipment brought to U.S. for repair that must be exported after repair. This is common for marine equipment sent to U.S. repair facilities.
HTS 9813.00.20 covers models and samples—demonstration equipment for potential customers, samples for examination or testing, not for sale in imported condition.
HTS 9813.00.30 covers professional equipment—tools, instruments, and equipment of trade for professional use by non-residents, common for foreign marine surveyors or technicians visiting the U.S.
HTS 9813.00.50 covers articles for testing, experimentation, or review—equipment imported for testing purposes or evaluation before potential purchase.
Marine Equipment Applications
Common uses of TIB in maritime operations include equipment demonstrations where foreign manufacturers bring equipment for demonstration to potential U.S. customers, trade shows, or sea trials. Repair and service applications include foreign vessels bringing equipment to U.S. repair facilities or marine equipment sent to the U.S. for specialized repair or calibration.
Professional use applications include foreign marine surveyors bringing professional equipment or specialized testing equipment for one-time use. Testing and evaluation covers equipment evaluation before purchase decisions or performance testing under U.S. conditions.
These applications connect with the equipment import procedures in our ISF Filing Requirements and Heavy Lift Maritime Logistics articles.
TIB Entry Procedures
To enter goods under TIB, file entry using the appropriate TIB provision, declare merchandise with TIB classification, provide detailed description of goods, state intended use supporting TIB eligibility, and indicate expected export date.
Documentation requirements include commercial invoice describing merchandise, proof of foreign origin, description of temporary use purpose, statement of intent to export, and any required permits or certifications.
CBP reviews TIB eligibility, may request additional information, approves entry under the TIB provision, and releases goods without duty payment. The bond remains active until proper disposition. These procedures integrate with the broader entry requirements in our Maritime Customs Documentation guide.
Maintaining TIB Compliance
During the temporary import period, use must match declared purpose. You cannot sell merchandise in imported condition or use for purposes outside TIB scope. Any change in plans may require amended entry or duty payment.
Maintain records of merchandise location, document use consistent with TIB purpose, track time remaining in the TIB period, and keep export documentation readily available.
For extension requests, file before the period expires, explain why additional time is needed, and note that generally up to two one-year extensions are available for a total of three years.
Exporting TIB Merchandise
Proper exportation is essential to close TIB entries. Export merchandise before the TIB period expires, file proper export documentation, maintain proof of export, and close the TIB entry with CBP.
Export documentation includes Electronic Export Information (EEI) when required, reference to the original TIB entry number, merchandise description matching the entry, and export carrier and destination documentation.
Submit proof of export to the entry port, CBP verifies proper exportation, bond liability is released, the entry is officially closed, and you must retain documentation for five years. Failure to properly export and close TIB entries results in duty liability and potential penalties as discussed in our Customs Penalties article.
Alternative Dispositions
Options other than exportation include destruction under CBP supervision, where merchandise may be destroyed instead of exported under CBP supervision with documented destruction closing the TIB entry.
Entry for consumption allows you to pay applicable duties and fees, converting temporary to permanent import—this may be appropriate if plans change. File consumption entry before TIB expires.
In some cases, transfer to another TIB category is possible for different use than originally declared, requiring CBP approval with new TIB conditions applying.
Common TIB Problems
Issues that create complications include missed export deadlines where the TIB period expires before export—full duty becomes due immediately with potential penalties.
Inadequate documentation problems occur when you cannot prove proper export or have missing records of TIB use. Use violations include using merchandise outside TIB scope or sale of TIB merchandise, which trigger duty and penalties.
Extension failures from not requesting extension in time or insufficient justification cause problems. Always plan ahead and request early. These problems trigger the penalties detailed in our Customs Penalties article.
TIB for Foreign Vessels and Equipment
Foreign vessels operating temporarily in U.S. waters have different procedures from equipment TIB but related concepts. Vessel admission procedures are covered in our Foreign Vessel Customs Compliance guide.
Foreign vessels may enter for repair with no duty on the vessel itself. TIB may apply to parts and equipment removed and later reinstalled. Repair materials may be duty-free if the vessel remains foreign-flagged.
Professional equipment of foreign crew may qualify for TIB under the professional equipment provision, must accompany the crew member, and exports when crew departs.
TIB vs. Other Programs
TIB compared to other approaches:
ATA Carnet is an international system for temporary imports that may be simpler for certain goods but not all goods or countries are eligible. TIB is more flexible for marine equipment and Carnet doesn’t require a U.S. bond.
Compared to Foreign Trade Zones, FTZ provides duty deferral not exemption, while TIB provides complete duty avoidance if exported. FTZ is better for manufacturing and processing while TIB is better for true temporary use. See our FTZ Benefits article for detailed comparison.
Compared to drawback, drawback refunds duties after export requiring duty payment first then claiming refund, while TIB avoids duty payment entirely with simpler cash flow.
Working with Customs Brokers
Broker assistance is valuable for TIB because brokers determine appropriate TIB provisions, prepare proper entry documentation, arrange TIB bonds, track TIB deadlines, coordinate export documentation, and close TIB entries properly.
When selecting a broker, ensure experience with TIB entries, understanding of marine equipment applications, systems for tracking TIB deadlines, and relationships with sureties for bonds.
As discussed in our How to Choose a Customs Broker for Your Shipyard article, TIB expertise should be evaluated when selecting service providers.
Conclusion
Temporary Importation under Bond provides valuable duty-free treatment for marine equipment entering the U.S. temporarily. Proper use requires selecting the correct TIB provision, meeting all entry requirements, maintaining compliance during the temporary period, properly exporting and closing entries, and avoiding common problems.
For marine equipment demonstrations, repairs, professional use, and testing, TIB offers significant duty savings when equipment genuinely returns abroad. The key is proper planning, documentation, and deadline management.
TLR Projects, Marine & Offshore provides expert assistance with TIB entries for marine equipment, helping clients select appropriate provisions, meet documentation requirements, and ensure proper closure of temporary import entries. Contact us to discuss your temporary import needs.
About TLR Projects, Marine & Offshore
TLR Projects, Marine & Offshore specializes in customs brokerage, freight forwarding, and turnkey logistics solutions for the maritime and offshore industries. With deep expertise in vessel operations, shipyard services, and offshore compliance, we provide the specialized support that maritime companies require. Contact us to learn how we can support your operations.
