U.S. CBP Revenue Division is conducting sufficiency review for all active continuous bond on a monthly basis. Due to the newly imposed tariffs, it is very critical to review and forecast your import activities to avoid bond insufficiency and bond stacking liabilities issue. When your continuous bond is rendered insufficient, there might be delays on clearing your cargo and the length of time to get your bond reinstated might take some time. Sureties may require collateral in a form of irrevocable letter of credit or cash to increase the bond based on several factors such as: commodities involved, duty margins and taxes, financial aspect, import history, etc.. The sureties may also require proof of financial stability by providing financial statements, tax returns and they will also need a signed General Agreement of Indemnity,
At Flegenheimer, we are pro-active in addressing this matter to our importers. It is in your best interest to understand your options and determine if a bond increase beyond minimum amount will be more appropriate.
To read more about “Customs Bonds”:
To view the current bond formulas: