In-Bond - A procedure that allows the movement of merchandise through the United States without payment of duty and taxes prior to entry into domestic or foreign commerce. It is established by statute (19 USC 1551, 19 USC 1552 and 19 USC 1553) and the process is set forth pursuant to regulation (19 CFR Part 18). The merchandise must be covered by a custodial bond while being transported. The bond protects the interest of CBP and other agencies in the merchandise. In-bonds may not be used for explosives or prohibited cargo.