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Under the U.S. Customs and Border Protection (CBP) regulations, imported merchandise may be transported in-bond. The in-bond process allows imported merchandise to be entered at one U.S. port of entry without appraisement or payment of duties and transported by a bonded carrier to another U.S. port of entry provided all statutory and regulatory conditions are met. At the destination port, the merchandise is entered into the commerce of the United States and duties paid or the merchandise is exported. The changes in this rule, including the automation of the in-bond process, would enhance CBP's ability to regulate and track in-bond merchandise and ensure that the in-bond merchandise is properly entered or exported. Among other things, the changes further simplify and facilitate the in-bond process as the paper in-bond application (CBP Form 7512) is eliminated and carriers or their agents are required to electronically file the in-bond application.