What is a Transportation & Exportation Bond (T&E Bond)?

There are many occasions when you’ll want to import a vehicle or another belonging into Canada, but to do so you’ll have to transport it through the United States first. When this is the case, you should use a transportation and exportation (T&E) bond to get the job done without spending more money than necessary.

What is a Transportation and Exportation Bond?

A T&E bond is a way for the US Federal Government to ensure that it’s getting paid duties on imported items that are remaining in the United States. In other words, the US takes a temporary payment from a transport company or a private property owner that’s moving an item through the United States to another country such as Canada or Mexico. The bond amount is reimbursed when the item is transported back out of the country once again, but it is kept if for some reason the export never happens. This makes it easy for the Federal Government to collect money for import duties, and it’s a form of security that’s easy for everyone involved.


What is a Transportation & Exportation Bond (T&E Bond)?


Why is it Valuable?

The transportation and exportation bond system is valuable to transport services and people moving objects through the United States, because it allows them to avoid paying duties to the country for items that aren’t really being imported. With these bonds in place they just make a temporary payment that’s later reimbursed so that the shipping cost is much more affordable overall. Paying duties multiple times would be very expensive and a poor way to ship items between countries.

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Finding a Company that Utilizes T&E Bonds

When having vehicles or other items shipped through the United States and into Canada, it’s vital that you make sure you’re working with a company that uses T&E bonds. If they aren’t using this bonded method of transport you’ll be stuck paying additional duties on top of the duties you’ll pay when the vehicle finally makes it to Canada. This will make your transport significantly more expensive and is never a good idea.

You won’t need to worry about T&E bonds unless you’re moving a vehicle or another piece of property through the United States from another country and to another country, but it’s still an important concept to understand. T&E bonds can save you a great deal of money, and they’re something that all professional transport companies should be using to make sure their shipping services are as affordable as possible.

Need reliable transport for your car when moving to Canada? Need a company that has the knowledge and experience to transport your car safely? A-1 Auto Transport has more than 20 years of transport experience and can ship your car safely to Canada. When you are ready for a quote and to book service be sure to fill out our easy, no obligation quote form for fast service and a great price.

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