China 301 Tariffs: Bond Saturation
As we continue to follow the effects of China 301 tariffs, we would like to remind importers of the customs bond requirements and the potential for quick saturation of existing bonds. The China 301 tariffs now encompass four separate lists of commodities and a fifth list scheduled for December 15th, 2019.
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 amount allowable is $50,000 USD, which covers up to $500,000 USD in duties, taxes, and fees to U.S. Customs and Border Protection (CBP).
The sharp increase in tariffs could result in rapid saturation of your customs 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. Please be aware of the duties, taxes, and fees your company is paying and proactively monitor your bond saturation level.
If your bond begins to approach saturation, you will be notified by either CBP, the service provider that manages your bond, or the surety company. If your company is notified, your firm will have only fifteen (15) days to increase the bond.
If your company has questions regarding bond sufficiency, you can contact your service provider. The Willson U.S. Regulatory team can be reached via email email@example.com.