What Is Bonded Freight and How Does It Work?

Introduction

Bonded freight is one of the most effective ways to move goods across borders without paying customs duties immediately. For companies shipping between the U.S. and Canada, or importing goods that need to pass through multiple customs zones, bonded transport saves time, reduces risk, and ensures regulatory compliance.

Quick Answer: Bonded freight lets goods travel through customs territory without paying duties or taxes until they reach their destination, using licensed bonded carriers and secure routes.

What Is Bonded Freight?

Bonded freight refers to shipments transported under a customs bond — a financial guarantee that duties, taxes, and compliance requirements will be met once the freight reaches its final destination.

Instead of paying import duties at every border crossing, bonded freight stays under customs control. It can move from port to warehouse, or across international borders, without being formally imported until the end of the journey.

Quick Answer: Bonded freight is cargo moved under customs control that defers duty payments until the shipment reaches its approved destination.

How Does Bonded Freight Work for U.S. Shippers?

The bonded freight process follows a defined sequence managed by licensed carriers and brokers:

1. Customs Bond Issued: A bond is purchased by the importer or carrier to guarantee payment of duties.
2. Shipment Sealed and Manifested: Goods are placed under seal and listed in a bonded manifest.
3. In-Transit Movement: The bonded carrier moves the shipment through U.S. or Canadian territory.
4. Delivery to Bonded Facility: The load goes to a customs-approved warehouse or port.
5. Duties Paid and Freight Released: Once duties are cleared, the cargo is officially imported and delivered.

Quick Answer: Bonded freight moves under a customs bond from port or border to an authorized warehouse, deferring duty payment until final clearance.

What Are the Types of Customs Bonds?

Different bonds cover different stages of international trade:

• Single-Entry Bond: Used for one shipment or transaction.
• Continuous Bond: Covers multiple shipments throughout the year — ideal for frequent importers.
• Transportation and Exportation Bond (T&E): Allows freight to move through the U.S. without being imported.
• Warehouse Bond: Covers goods stored in bonded warehouses.

Quick Answer: Single, continuous, T&E, and warehouse bonds allow flexibility for importers depending on shipment volume and route.

What Are Bonded Carriers and Warehouses?

Only licensed and approved entities can handle bonded freight:

• Bonded Carrier: A trucking company authorized by U.S. Customs and Border Protection (CBP) to transport bonded cargo.
• Bonded Warehouse: A secured, customs-approved facility where goods can be stored duty-free until clearance.

Quick Answer: Bonded carriers and warehouses maintain customs control, allowing goods to move or be stored without immediate duty payment.

Why Do Shippers Use Bonded Freight?

Bonded freight provides significant advantages for importers, exporters, and cross-border carriers:

• Duty Deferral: Delays payment until final sale or importation.
• Route Flexibility: Enables transit through customs zones without re-filing import paperwork.
• Risk Reduction: Protects high-value cargo under customs supervision.
• Cash-Flow Benefits: Keeps capital available for other operations.

Quick Answer: Businesses use bonded freight to reduce costs, improve cash flow, and simplify multi-country shipping.

What Documents Are Required for Bonded Freight?

Proper documentation ensures quick border movement and customs release:

• Bill of Lading (BOL) – Lists shipper, consignee, and cargo details.
• Customs Bond Certificate – Proof of active bond coverage.
• In-Transit Manifest – Declares bonded cargo for customs tracking.
• Commercial Invoice & Packing List – Establishes product value and origin.
• ACE/ACI eManifest – Filed electronically for cross-border shipments.

Quick Answer: A customs bond, bill of lading, manifests, and commercial invoices are required to move bonded freight legally.

What Are the Challenges of Managing Bonded Freight?

Even with its advantages, bonded freight comes with strict compliance demands:

• Paperwork Errors: Missing documents can lead to shipment seizure.
• Limited Access: Only authorized carriers and warehouses can handle bonded goods.
• Inspection Delays: Customs may inspect shipments randomly.
• Expiration Risks: Single-entry bonds expire if shipments are delayed too long.

Quick Answer: Compliance, timing, and documentation accuracy are the biggest risks in bonded freight management.

How Does DNLogistic Ensure Bonded Freight Compliance?

DNLogistic helps businesses navigate the complexities of bonded shipping through proven systems and partnerships:

• Licensed Bonded Carrier Network: Authorized to move bonded freight across the U.S. and into Canada.
• Customs Coordination: Close collaboration with brokers for pre-clearance and real-time updates.
• GPS Tracking and Visibility: Full transparency from origin to bonded warehouse delivery.
• Compliance Audits: Verification of bond validity, documents, and inspection readiness.

Quick Answer: DNLogistic manages bonded freight end-to-end — from customs documentation to secure, compliant delivery.

Case Study Moving Bonded Freight from Portland to Vancouver, BC

A U.S. manufacturer needed to ship machinery parts from Portland, Oregon, to a client in Vancouver, British Columbia, without paying duties in advance.

Challenges

• Required customs bond for in-transit movement.
• Strict Canadian import timing.
• Potential inspection at the Blaine–Surrey border.

Solutions

• DNLogistic issued a Transportation and Exportation (T&E) bond.
• Filed ACE/ACI manifests electronically before arrival.
• Used bonded carriers certified under C-TPAT for expedited clearance.

Results

• Shipment cleared customs in under 40 minutes.
• No duties paid until final importation.
• Client saved 12% in upfront costs.

Quick Answer: Using bonded freight allowed the shipper to move goods cross-border duty-free until arrival in Canada.

What Does Bonded Freight Cost?

Costs depend on shipment size, distance, and bond type:

• Bond Fee: Typically 0.5%–2% of shipment value.
• Broker and Filing Fees: For manifest submissions and customs coordination.
• Carrier Premium: Slightly higher rates for licensed bonded carriers.
• Storage Fees: If goods remain in bonded warehouses beyond the free period.

Quick Answer: Bonded freight costs slightly more upfront but reduces total landed cost by deferring duties and taxes.

Conclusion Simplifying Bonded Freight with DNLogistic

Bonded freight is a powerful tool for international trade — offering flexibility, security, and cost control for shippers operating between the U.S. and Canada or through multiple customs zones.

DNLogistic’s expertise in bonded transport ensures every shipment remains compliant, traceable, and efficient from origin to destination.