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.

SCHEDULE A 30 MINUTE CONSULTATION ON US!

Email Us: team@junocustoms.com

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