Bonded Cargo Specialist flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Bonded warehouse

A secured, Customs-approved facility where imported goods are stored with duty and tax payment suspended until they are entered for consumption, exported, or otherwise lawfully disposed of.

Warehouse ledger

The running record of bonded goods received, moved, and removed. It must be updated at the time of each transaction so the book balance reflects actual quantities on hand.

Facility activation

The process of obtaining Customs approval and bond coverage for a storage location before bonded cargo may be received there. Unapproved space cannot hold bonded goods.

Bond principal

The party legally liable for duties, taxes, and penalties on bonded goods. Liability continues until the bond is properly closed or the goods are exported.

Record retention period

The required period, commonly five years, during which entry and bonded transaction records must be kept legible and available for Customs inspection.

Customs audit

An examination of the bonded party's records, inventory, and procedures to verify compliance. Findings can lead to penalties, seizure, or bond cancellation.

Bill of lading

The transport document that evidences the contract of carriage and describes the goods, quantity, and consignee. It is a core record for bonded cargo receipt.

Warehouse receipt

A document recording the quantity and condition of goods received into the facility. Discrepancies noted at receipt protect the operator and support later reconciliation.

Electronic recordkeeping

Storing required documents in a secure, backed-up system that can produce legible copies on request. Access and amendments must be controlled and logged.

Reconciliation

Comparing the bonded ledger, entry documents, and physical inventory to identify differences, which are then classified as shortages, overages, or misidentification and investigated.

Shortage report

A documented notice to Customs identifying missing bonded goods, quantity, date discovered, likely cause, and corrective action. It must be filed within the required timeframe.

Overages

Goods found in excess of recorded quantities. They are treated as unentered goods and must be entered, exported, or destroyed under Customs supervision.

Cycle counting

A control method that verifies selected inventory, often high-value or high-risk goods, more frequently than a full physical count to detect discrepancies early.

Seal verification

Checking the container or vehicle seal number against the transport document at receipt and before release. Broken or mismatched seals require inspection and reporting.

Access control

Limiting bonded area entry to authorized personnel, escorting and logging visitors, and promptly revoking credentials when staff leave or change roles.

Cargo integrity check

Verifying package condition, count, and labels at receipt and at each internal movement to detect tampering, damage, or loss before goods leave control.

Incident report

A retained record of theft, tampering, or unauthorized access in the bonded facility, made available to Customs on request and used to drive corrective action.

In-bond movement

Authorized transport of goods under Customs control without duty payment, documented by a movement record naming the principal, carrier, and destination.

Chain of custody

Documentation of every handoff of bonded cargo, from receipt and loading through transit and delivery, so responsibility for the goods is traceable at each stage.

Movement closure

Confirming that an in-bond shipment reached its destination and was accounted for within the allowed transit time. Failure to close creates a reportable discrepancy.

Transit time limit

The maximum period allowed to complete an in-bond movement and close it at the destination. Unexplained delays or route deviations must be documented and investigated.

Customs value

The basis for duty, generally the transaction value of the goods plus specified additions such as freight and insurance where the applicable rules require them.

Duty suspension

The deferral of duty and tax while goods remain in a bonded warehouse. Liability arises on entry for consumption or on an unexplained shortage.

Tariff classification

Assigning goods to a code in the tariff schedule, which determines the duty rate. Misclassification can cause underpayment or overpayment of duties.

Certificate of origin

A document supporting a preferential duty rate by proving where goods were produced and that applicable origin rules were met.

Bond sufficiency

The requirement that bond coverage be large enough to cover potential duty and tax liability. Insufficient coverage can block new bonded movements.

Hazardous goods classification

Assigning dangerous goods to a hazard class under applicable regulations so packing, marking, labeling, and segregation requirements are correctly applied.

Segregation of incompatible goods

Separating hazardous materials by distance or barrier according to hazard class to prevent dangerous reactions during storage or transport.

Safety data sheet

A document describing a hazardous material's properties, hazards, and safe handling. It must be available for all hazardous materials stored in the facility.

Spill response kit

Equipment kept on hand for containing and cleaning hazardous material releases. It must be inspected, maintained, and used by trained personnel.

Hazmat training

Instruction for personnel who handle hazardous goods, covering recognition, safe handling, spill response, and emergency procedures required by the facility plan.

Duty drawback

A refund of duties paid on imported goods that are later exported or destroyed, supported by documentation proving the export or destruction.