Posted on LinkedIn:
The China tariffs have resulted in customs continuous bond saturation or near saturation for importers. Continuous bond amounts are calculated using 10% of the total duties, taxes, and fees paid for the previous 12-month period. The minimum continuous bond allowable is $50,000 USD, which covers up to $500,000 USD in duties, taxes, and fees to US Customs and Border Protection(CBP).
If your bond begins to approach saturation, you will be notified by either CBP, your customs broker, or the surety company. Upon notification your company has fifteen days to increase the amount of the bond. If your company’s bond becomes saturated and rendered insufficient by CBP, your company will not be permitted to import goods into the United States until a new bond with a higher limit of liability is established.
The amount of the new bond is a management decision based on input from customs brokers, procurement staff, finance, and insurance carriers. Best to be proactive and check your bond sufficiency now.