Why Are Tariffs Increasing Bond Amounts? What Happens When CBP Issues a Bond Insufficiency Letter? How does Re-Writing a Bond Mid-Term Create Underwriting Concerns? How Should an Importer Set an Appropriate Bond Amount? Many importers have received multiple insufficiency notices within a short period of time. To help prevent this, we recommend that an importer: … Read more
CBP periodically monitors the sufficiency of active bonds they have on file. If they find that an active Importer bond is not sufficient according to it’s published directive, which is based on the import activity of the principal, they may do one of two things. (1) In the event that CBP feels the current bond … Read more
When U.S. Industries have suspicion that specific commodities from certain countries are being imported and sold below fair market value, they may petition the U.S. Government to impose special duties on imports of these goods. These duties are referred to as antidumping duties (ADD). Similarly, when U.S. Industries have suspicion that there are specific commodities … Read more
There is so much more to Customs bonds than just financial underwriting. The complex system of laws, regulations and taxes that principals who are involved in international trade are expected to know and be familiar with can be daunting. In fact it is often the Customs specific risks that can greatly impact the underwriting terms … Read more
When an import is made into the U.S., the duties, taxes and fees are due to CBP within 10 days. The Periodic Monthly Statement Processing Program (PMS) allows the principal to pay these duties, taxes and fees on the 15th working day of the following month. This program is only offered for continuous Importer bonds. … Read more
Reconciliation is a CBP process which, according to CBP, “allows the importer, using reasonable care, to file entry summaries with CBP with the best available information, with the mutual understanding that certain elements, such as the declared value, remain outstanding. At a later date (anywhere from 12 to 21 months) when the specifics have been … Read more
An importer bond, or Activity Code 1, is the most common type of Customs bond. This type of bond allows an importer of merchandise to bring their goods into the United States. The bond guarantees that the entry paperwork is filed correctly by the principal or principal’s customs broker and the appropriate amount of duties, … Read more
Liquidation is the process of final review of an entry by Customs which occurs approximately one year after the entry date for a typical consumption entry. In accordance with 19CFR 159.1, liquidation means the final computation, or assessment of duties on entries for consumption or drawback entries. Presently, the liquidation cycle utilized by CBP is … Read more
A Temporary Importation entry, or TIB (which stands for Temporary Importation Bond, a misnomer), is one of several ways goods can be entered into the U.S. When goods are entered in this manner, the importer is declaring to Customs that they are exempt from having to pay duties as the merchandise will be exported out … Read more
Through the years, Customs has had a number of different policies for ensuring that principals maintain bonds in an adequate amount. Customs’ current requirement is that a continuous importer bond be set in an amount equal to 10% of the duty, taxes, and fees paid to Customs in the last 12 months – or $50,000 … Read more
