In simple terms, a bond, by law, is the control of goods that are being transported or stored while under the responsibility of bonded entities such as CN, other carriers, or bonded facilities, until Customs and Border Protection (CBP) authorizes delivery or further movement.

CN bonds in the U.S. are managed electronically through our link with the CBP's Automated Manifest System (AMS). An electronic release notification from CBP through their AMS application to CN is required to legally constitute the release of CN liability.

Please consult the CN transborder group or your account manager in these instances:

• For specific instructions and coordination prior to any action being initiated in an emergency transshipment process
• Prior to initiating transportation, for exceptions to a simple release by CBP of CN-bonded shipments
• In the event of an exception to the normal U.S. in-transit process (such as a requirement for an emergency transshipment) in order to arrange for specific instructions and coordination prior to any action that requires the special management of CN's bond.

Find out more on intermodal shipments:

• From Canada to the U.S.
• From Canada in-transit through the U.S. to Mexico
• By ocean carrier from Canada to U.S. and in-transit through the U.S.

Intermodal shipments from Canada to the U.S.

Many shipments are cleared by your customs broker at the time of entry into the U.S. However, if required, CN will electronically extend our bond while the shipment is on the CN rail network. This is an Immediate Transportation (IT) bond and must be closed with CBP prior to the shipment leaving CN's control and responsibility.

• CN must receive an electronic notification of the bond closure from CBP through the Rail AMS process.
• Transshipments of CN-bonded conveyances may only take place within a CBP port in the U.S.
• In the case of transshipment, CN's bond must be closed through a warehouse entry into a bonded warehouse at the customs port where the transshipment is to take place.
• In the event that an emergency transshipment is required, e.g., due to a damaged container, and a bonded warehouse is not available, then the transshipment may take place under the supervision of a CBP inspector.
• If a CN-bonded shipment needs to be taken by highway carrier from a CN-served intermodal ramp to a warehouse for deconsolidation, the shipment may be removed from CN's facility through the posting of a highway carrier's bond or through the posting of a Permit to Transfer.

Intermodal shipments from Canada in-transit through the U.S. to Mexico

• CN can issue an electronic Transportation and Exportation (T&E) bond to protect the movement of containers or trailers in-transit through the U.S. for furtherance to Mexico.
• CN, in collaboration with U.S. partner railroads that cross the U.S./Mexico border, ensures that the T&E bond is acquitted with CBP at the time the conveyance is physically exported from the U.S. into Mexico.
• Your customs broker ensures that Mexico import processes are completed and that applicable duties and taxes are paid.

Intermodal ocean carrier shipments from Canada to U.S. and in-transit through the U.S.

Most ocean carrier shipments entering the U.S. from Canada move on an Immediate Transportation (IT) bond for inland customs clearance. CN electronically posts bonds with CBP through links with the CBP Rail AMS application.

• CN strongly recommends that ocean carriers have CN invoke their custodial bond for shipments moving via CN in order to facilitate and expedite inland U.S. clearances through the rail/ocean interface in CBP's AMS application.
• Through use of the ocean carrier's bond, the CBP's AMS Secondary Notify Party (SNP) process electronically sends bond status updates to the ocean carrier. The ocean carrier may then simply arrange for pick up of their containers from CN's facilities. Containers can flow unimpeded to other overland carriers under direction of the ocean carrier.
• CN can electronically post the ocean carrier's Transportation and Exportation (T&E) bond for containers in-transit through the U.S. for export from a U.S. ocean port. CN, in collaboration with U.S. partner railroads, electronically arrives and closes the T&E bond. The overseas destination and vessel information provided to CN are included on the AMS T&E bond and serve as the electronic export declaration with the U.S. Census Bureau, thus eliminating the paper export declaration that would otherwise be required at the U.S. port of exit.
• In the event an ocean carrier requires the use of CN's bond, the bond must be closed with CBP prior to the shipment leaving CN control and responsibility within the U.S. An electronic release notification from the CBP's AMS application to CN is required for each shipment to legally constitute the release of CN liability.

In the case where a CN-bonded shipment needs to be taken by highway carrier from a CN-served intermodal ramp to a warehouse for deconsolidation, the shipment may be removed from CN's facility through the posting of a highway carrier's bond or through the posting of a Permit to Transfer.

Transshipments of CN-bonded conveyances may only take place within a CBP port in the U.S. In the case of transshipment, CN's bond must be closed through a warehouse entry into a bonded warehouse at the customs port where the transshipment is to take place.