[Federal Register Volume 87, Number 29 (Friday, February 11, 2022)]
[Notices]
[Pages 8025-8026]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-02938]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

[CBP Dec. 22-03]


Termination of the In-Bond Export Consolidator Program and 
Associated Bond

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security.

ACTION: General notice.

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SUMMARY: This document announces the termination of the In-Bond Export 
Consolidator program (IBEC program) and the associated bond, known as 
the In-Bond Export Consolidation bond (IBEC bond), implemented at 
Customs District 52 (Miami). Consequently, IBEC program participants 
who intend to continue their operations must transition their facility 
status to either a customs bonded warehouse, container freight station, 
foreign trade zone, or a facility operated as a non-vessel operating 
common carrier, depending on their business needs, and also obtain the 
appropriate bond(s). U.S. Customs and Border Protection (CBP) is 
providing a transition period of one year from the date of this notice 
for IBEC program participants (including both IBEC program facilities 
and the operators who manage the facilities) to transition the status 
of their facilities, as set forth in this notice.

DATES: IBEC program participants (including both IBEC program 
facilities and the operators who manage the facilities) who intend to 
continue in-bond export consolidation operations have until February 
11, 2023 to transition to one of the alternate facility types listed in 
this notice and obtain the appropriate bond(s). As of February 11, 
2022, CBP will no longer accept applications for new IBEC bonds

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(designated as Activity Code 14 on the CBP Form 301). IBEC bonds 
executed prior to February 11, 2022, may continue to be used to secure 
activities until February 11, 2023.

FOR FURTHER INFORMATION CONTACT: Christopher Dow, Assistant Port 
Director, Miami Seaport, Office of Field Operations, U.S. Customs and 
Border Protection, [email protected] (email preferred) or 305-869-2653.

SUPPLEMENTARY INFORMATION:

Background

    In the 1980s, non-vessel operating common carriers, non-aircraft 
operating common carriers, exporters, and other freight consolidators 
(known as ``export consolidators'') in Customs District 52 (Miami) 
established a service that involved the receipt into their facilities 
of individual exportation shipments for consolidation prior to 
exportation. Due to conflicts between industry practices and the 
customs regulations, the U.S. Customs Service (the predecessor agency 
of U.S. Customs and Border Protection (CBP)) established the In-Bond 
Export Consolidator program (IBEC program) in 1986 \1\ as a pilot 
program to accommodate the growing export consolidation industry.\2\ 
All entities that intended to continue the consolidation for export of 
merchandise traveling under a customs bond were required to participate 
and accept the conditions of the IBEC program. In 1998, the U.S. 
Customs Service created a special bond, known as the In-Bond Export 
Consolidation bond (IBEC bond), in an effort to maintain procedural and 
regulatory control over the bonded freight for export.\3\ The IBEC bond 
covered the consolidation, cartage, transportation, and exportation of 
in-bond merchandise in the custody of the U.S. Customs Service (now 
CBP).\4\ The IBEC bond was required by specific instruction pursuant to 
section 113.1 of title 19, Code of Federal Regulations (CFR) (19 CFR 
113.1). Today, the IBEC bond is also known as the Activity Code 14 
bond, as designated on the CBP Form 301 (Customs Bond). Currently, 
there are 194 active IBEC bond holders, and they operate within the 
Miami Seaport and Port Everglades ports of entry.
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    \1\ Information Bulletin 86-66 (Miami Customs District, Sept. 
12, 1986).
    \2\ The IBEC program was briefly cancelled beginning May 25, 
1991, and then restarted again as early as September 19, 1991, as 
explained in Information Bulletin No. 91-75 (Miami Customs District, 
Sept. 19, 1991).
    \3\ Information Bulletin No. 99-013 (Miami Customs District, 
Dec. 3, 1998). Information Bulletin No. 99-013, which announced the 
creation of the IBEC bond, superseded previous statements of the 
IBEC program's requirements/status dating back as far as 1988.
    \4\ The IBEC bond terms can be found in the ``Sample Application 
for In-Bond Export Consolidation (IBEC) Bond,'' which can be 
accessed at https://www.cbp.gov/sites/default/files/documents/Sample%20Type%2014-%20IBEC%20Bond-final.pdf (last accessed Jan. 26, 
2022).
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    CBP continues to have concerns with maintaining procedural and 
regulatory control over merchandise destined for export to ensure the 
protection of the revenue of the United States and compliance with the 
laws and regulations enforced by CBP. Specifically, the IBEC program 
has made it more challenging for CBP to ensure that the custody and 
manipulation of merchandise complies with regulations such as 19 CFR 
19.11(e) and 125.41(a). For these reasons, CBP is terminating the IBEC 
program and IBEC bond. The IBEC program is being terminated pursuant to 
the broad discretion afforded to the agency under the applicable 
regulations, including 19 CFR parts 4, 18, 19, 112, 113, 125, 144, and 
146. The IBEC bond is being terminated pursuant to 19 U.S.C. 1623 and 
19 CFR part 113.
    In order to continue their operations, existing IBEC program 
participants, which include both IBEC program facilities as well as the 
operators who manage the facilities, must transition their export 
consolidation activities to a customs bonded warehouse (see 19 CFR 
parts 19 and 144), a container freight station (see 19 CFR 19.40-
19.49), a foreign trade zone (see 19 CFR part 146), or a facility 
operated as a non-vessel operating common carrier (NVOCC) (see 19 CFR 
4.7(b)(3)) \5\. In addition, IBEC program participants must procure the 
appropriate bond(s) to operate as one of these alternate facility types 
(see 19 CFR part 113). These transition decisions will need to be made 
by the IBEC program participants based on their business models and 
business needs.
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    \5\ NVOCCs are regulated by the Federal Maritime Commission 
(FMC). Those IBEC program participants interested in operating as 
NVOCCs should consult with the FMC to ensure all applicable 
requirements are met. See Ocean Transportation Intermediaries, 
https://www.fmc.gov/resources-services/ocean-transportation-intermediaries/ (last accessed Jan. 26, 2022).
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    CBP has begun working with all IBEC program participants to guide 
them as they transition into one of the alternate facility types and 
continues to conduct outreach to IBEC program participants to ensure 
the trade community's continuity of operations. IBEC program 
participants with questions about the transition may contact the point 
of contact listed above in this notice, preferably by email.
    CBP recognizes that current IBEC program participants may need a 
transition period to transition the status of their facilities, as set 
forth in this notice. Therefore, current IBEC program participants 
(including both IBEC program facilities and the operators who manage 
the facilities) who intend to continue in-bond export consolidation 
operations have until February 11, 2023 to transition to one of the 
alternate facility types listed in this notice and obtain the 
appropriate bond(s). As of February 11, 2022, CBP will no longer accept 
applications for new IBEC bonds (designated as Activity Code 14 on the 
CBP Form 301). IBEC bonds executed prior to February 11, 2022, may 
continue to be used to secure activities until February 11, 2023. CBP 
will continue to work closely with IBEC program participants to ensure 
the trade community's understanding and compliance with this notice.

Pete Flores,
Executive Assistant Commissioner, Office of Field Operations.
[FR Doc. 2022-02938 Filed 2-10-22; 8:45 am]
BILLING CODE 9111-14-P