Role of Customs Bonds in International Trade
Customs bonds play a crucial role in facilitating smooth and lawful international trade. They serve as a safety net for US Customs, ensuring that duties and taxes arecollected, and regulations are followed. Essentially, they help maintain the integrity of the supply chain and protect the interests of all parties involved in the import process.
Importance of Customs Bond Sufficiency
Ensuring Compliance with Customs Regulations
Customs bonds play an important role in the facilitation of cargo. A properly sized bond ensures that importers are compliant with CBP regulations and avoiding delays.
Importer Continuous Bonds – General Principals
Bond Calculation
10% of annual duties, taxes, and fees within a 12-month period.
Bond Amounts
Minimum bond amount is $50,000
Increased by increments of $10,000 up to the first $100,000
After $100,000 increments are increased by $100,000
Bond Saturation
If your duties, taxes, and fees exceed your bond amount within a bond period (rolling 12-month period, the bond is determined insufficient.)
US Customs will issue a Bond Insufficiency Notice to the importer and mandate the surety to terminate the bond within 30 days. The Bond Insufficiency Notice will indicate the minimum bond amount that will be required.
Strategies for Maintaining Sufficient Customs Bonds
Purchase order forecasting
Bond saturation reports
Follow relevant government departments or agencies for updates.
Join trade associations or trade organizations within your related field.
Connect with us on LinkedIn to receive important updates from Juno.
Factors Influencing Customs Bond Sufficiency
Import volume
Value of goods
Country of Origin
Harmonized Tariff Number
Trade Remedies
Trade Acts
Inflation
We have your back!
By staying proactive and utilizing various resources, you can easily keep yourself informed and prepared for any fluctuations in duty rates.
We’ve got you covered. We understand the challengesthese proposed tariffs may bring, and as your trusted partner, we will work closely with you to adjust your strategies and stay compliant throughout.
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Email Us: team@junocustoms.com