PTT vs. IT Explained

What is a Permit to Transfer (PTT)?

A Permit to Transfer, commonly known as a PTT, is a Customs and Border Protection (CBP) authorization that allows bonded freight to move from the terminal or port of unlading to another bonded facility within the same port of entry. It is designed for local transfers and is often used to move containers to a container freight station (CFS), a centralized examination station (CES), a bonded warehouse, or a foreign trade zone (FTZ). Importantly, a PTT does not change the port of entry. Instead, it enables cargo to move under bond while remaining under CBP control until the goods are either entered for consumption, admitted into an FTZ, or exported. PTTs are commonly used to avoid congestion and demurrage at the pier, giving importers more flexibility for storage and inspections.

What is an Immediate Transportation (IT)?

Immediate Transportation, or IT, is a type of in-bond entry under CBP regulations that allows bonded cargo to move from the port of first arrival to another U.S. port of destination without duties being paid at the initial port. Unlike a PTT, which is limited to movements within a single port, an IT authorizes cargo to travel between ports and is documented using CBP Form 7512. IT entries are used when cargo must move inland for entry filing, when goods are intended for admission into an inland FTZ, or when freight is set to be re-exported through a different port. The IT process provides greater flexibility for logistics planning, but it also comes with strict timelines and reporting requirements that carriers and 3PLs must manage carefully.

Key Differences Between PTT and IT

The primary difference between a PTT and an IT is scope. A PTT only applies to local transfers within the same port, while an IT is used for inter-port movements across the U.S. Because of this distinction, the paperwork and compliance obligations also differ. PTTs are usually requested electronically through CBP’s Automated Commercial Environment (ACE) system and are tied directly to the bill of lading at the port of arrival. IT movements, on the other hand, require an in-bond filing and must be completed using Form 7512 or its electronic equivalent. Both require a valid custodial bond, but the operational responsibilities differ depending on whether the movement is local or interstate.

Another critical difference is timing. PTTs fall under the 15-day general order rule, which means that freight must be entered or admitted into an FTZ within 15 calendar days of arriving at the bonded facility. IT movements operate under two separate clocks: cargo must reach its destination port within 30 days if moved by truck or rail, or within 60 days if moved by barge, and once it arrives, the same 15-day general order rule applies. In other words, PTTs are about avoiding demurrage in the short term, while ITs provide flexibility for inland routing but carry stricter transit deadlines.

How the Custody Clock Affects Storage

Understanding the custody clock is essential for managing bonded freight. When cargo is moved under a PTT, the 15-day countdown to general order begins once the bonded facility receives the shipment. The clock does not reset simply because the cargo was transferred; the time that freight spends at the terminal before the PTT is issued still counts against the 15-day limit. With IT freight, the transit time is separate from the general order period. The carrier must deliver the cargo to the destination port within the 30- or 60-day window, and once it arrives, the 15-day general order period begins at the new location. This distinction can be costly if misunderstood, as missed deadlines can trigger liquidated damages, storage fees, or even the seizure of goods.

When to Use PTT

A Permit to Transfer is best used when shipments need to be moved quickly off the terminal to avoid demurrage charges but remain within the same port of entry. This option is also commonly used for shipments that are flagged for CBP examinations at a CES or for cargo destined for a local FTZ or bonded warehouse. Importers that want lower-cost storage options within the port often rely on PTTs to control costs while staying compliant with CBP requirements.

When to Use IT

An Immediate Transportation entry is appropriate when cargo must travel to another port for customs entry or further handling. This is particularly common for shipments arriving at coastal ports but destined for inland distribution centers or FTZs. ITs are also used when goods will eventually be exported through a port different from the port of arrival. The advantage of IT is that it allows freight to move closer to its final market or point of export, but this flexibility comes with strict obligations. The carrier must complete the move within the required transit window and report the arrival electronically within two business days.

Common Pitfalls with PTT and IT

One of the most common mistakes with PTTs is assuming that transferring freight resets the general order clock. It does not. The clock begins when CBP releases the freight into bonded custody, and any time spent prior to the transfer still counts. For IT entries, the biggest risks involve missing the 30- or 60-day transit deadlines or failing to report arrival on time. Carriers and importers also need to ensure that they are using the correct type of bond and that the party responsible for filing has the proper custodial authority. Failing to comply can result in penalties, liquidated damages, or cargo being placed into general order storage.

Why This Matters for Transport and Storage

The choice between PTT and IT has direct consequences for logistics costs and efficiency. A PTT helps importers minimize demurrage by moving containers quickly to a bonded warehouse or FTZ within the same port. An IT offers the flexibility of inland movement but requires careful monitoring of transit and reporting deadlines to avoid penalties. For 3PLs, understanding these distinctions is critical because mismanaging bonded freight can lead to increased costs, lost cargo, and strained client relationships.

The Role of a 3PL in Managing PTT and IT

Managing PTTs and ITs requires more than paperwork; it requires a system of oversight and compliance. A 3PL experienced in bonded freight can coordinate with carriers, file electronic requests in ACE, ensure bonded cargo is moved under the correct authority, and track custody clocks to prevent costly mistakes. At Snapl, we provide bonded warehousing, FTZ support, and bonded transport services near major U.S. ports. By carefully managing both PTT and IT processes, we help importers avoid demurrage, reduce storage costs, and ensure that cargo moves compliantly through the supply chain.

Strategic Planning for Bonded Movements

PTT and IT are essential tools in U.S. logistics, but they serve different purposes. A PTT keeps freight moving locally within a port, while an IT allows cargo to travel under bond to another port. Both involve strict deadlines, reporting requirements, and bond obligations that importers and 3PLs must carefully manage. Choosing the right option depends on whether cargo needs a short-distance local transfer or a longer in-bond movement to another port.

By working with a 3PL that understands these practical differences, importers can reduce risk, cut costs, and maintain a seamless logistics strategy.