Reassessing your Customs Bond Level
The tariff increases on imported goods from China are well known and have been covered non-stop. One area that you may not have heard addressed, however, is the impact these tariffs will have on a U.S. company’s Custom’s Bond.
If you are a U.S. company importing goods, understanding your duty rate amount and your bond limit is crucial. If a company imports $3mil worth of goods and pays no duty, then the minimum bond limit of $50,000 will suffice.
However, if that same $3mil worth of imports is now subject to a 25% tariff, that company will need a bond limit of $75,000.
- $3mil x 25% (previously 0%) = $750,000 duty rate amount
- $750,000 x 10% (Bond Calculation) = $75,000 bond limit needed
In this scenario, the U.S. company would need to request an increase in their bond limit from $50,000 to $75,000 to avoid any delays or penalties from U.S. Customs. This would be done by contacting their broker, or the surety company where the bond was purchased.
Every bond purchased through TBGFS is monitored, and we will alert any customer that is near their bond limit.
If you have any questions or concerns, please contact Trans-Border’s Customs Brokerage Department via email or by calling 800-493-9444.