The implementation of new tariff policies by the government of the United States will result in significant increases to duty outlay by importers and, in turn, their customs surety obligations. It is critical for importers to understand those obligations to avoid disruption to flow of imports.
The imposition of universal tariffs on Canada-origin, Mexico-origin and China-origin goods will require U.S. bond holders to re-evaluate the sufficiency of their current bonds. In the event a bond doesn’t cover the value of duties associated with goods at time of import, CBP may issue a notification in writing to require the importer to increase their bond.
Importers are typically granted a 30-day grace period to bring their surety to suitable levels. Bonds that are not adequately increased within the 30-day period will likely be terminated and the importer will no longer have surety to cover their customs duties. Should this occur, goods will be held at the border until the importer secures adequate surety and/or pays the duties in full.
It is important to note that the implementation of universal tariffs against Canada-origin, Mexico-origin goods and China-origin goods also applies to low-value shipments that have traditionally been exempt from requiring formal customs entries or the application of customs duties. As a result, importers of low-value shipments and parcels will be required to submit a formal customs entry for all shipments over $250 USD in value and secure a customs bond to insure the associated duty outlay.
Livingston may contact importers who have secured their bond through Livingston and are at risk of saturating their bond value to notify them that additional bond capacity is required. However, it is the responsibility of importers to confirm they have sufficient capacity within their bonds to cover the increased value of duty outlay.