Temporary Importation under Bond

When an importer makes entry of articles brought into the United States
temporarily and claimed to be exempt from duty under Chaper 98, Subchapter
XIII, Harmonized Tariff Schedule of the United States, a bond is posted
with Customs which guarantees that these items will be exported within a
specified time frame (usually within one year from the date of
importation). Failure to export these items makes the importer liable for
the payment of liquidated damages for breach of the bond conditions. (See
19 CFR 10.31.). The Temporary Importation under Bond (TIB) is usually
twice the amount of duties and other payments the importer would otherwise
be required to pay. Merchandise imported under TIB is usually for sales
demonstration, testing, or repair.