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Freight Forwarding & Incoterms: Key Terms Explained in Detail

Discover the essential freight forwarding terms and Incoterms that define responsibilities, risks, and cost-sharing in global trade. This glossary provides clear, practical explanations to help you navigate documentation and operational decisions with confidence.

Under Bond

Last updated: February 3, 2026
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“Under bond” refers to cargo that remains under customs control because duties, taxes, or clearance formalities have not yet been completed. Even though the goods have arrived in the country, they cannot be released for use or delivery. Customs supervision continues until all requirements are fulfilled. This status helps ensure regulatory compliance.

Goods under bond are often stored in bonded warehouses or moved between locations using bonded transport. This allows cargo to be relocated without paying duties immediately. Importers may choose this option to manage cash flow or complete documentation later. Customs tracks the cargo throughout this period.

The under bond status is commonly used for transshipment, temporary storage, or when clearance is pending. During this time, the goods cannot be sold or used locally. Any movement or handling must follow customs approval. This prevents unauthorized release or misuse.

Overall, underbond procedures provide flexibility while maintaining customs control. They help importers plan clearance efficiently. They also protect government revenue. And they ensure goods are released only after all legal obligations are met.

FAQ

Frequently Asked Questions about Under Bond

Clear answers to the most common questions people have when learning about Under Bond.

Goods stay under bond until duties are paid or customs clearance is completed, ensuring compliance with import regulations.

Yes. With customs approval, cargo can be transferred to bonded warehouses or other approved locations.

Once duties are paid and clearance is completed, customs releases the cargo for delivery or use.