301 Customs Bond

It won't be a scavenger's hunt if one desires to obtain continuous import bond, but knowing the importance of it is vital. When it comes to importing goods into the United States, importers are always recommended to read through important lengthy informat

How Increased Tariffs Affecting Imports in the US

Customs Bonds Customs Bonds NJ Import/Export OTI Bonds continuous import bond customs surety bond

Tariff escalation is the biggest burden on normal consumers of the US. Both the countries US-China have been in trade contention for the last one year and it has impacted both the countries in several sectors. Chinese exports are touching low every month as Trump administration hiking the tariffs and imposing bans on Chinese technology companies.

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How it all started

The world’s two biggest economies are on the front line ever since the US president began setting higher tariffs and other trade barriers on China in January 2018. The motive behind the improved tariffs was to abate unfair trade practices and the growing trade deficit. US had imposed tariffs on US$550 billion worth of Chinese products while in return, China had also stricken with tariffs on US$185 billion worth of US goods. The chronology is so long that can’t be referred here. But the truth is any of these nations are willing to back down the further rift.

Impact on the US imports

Increased rates on many Chinese goods have dramatically affected the importers and customs brokers as they have to be more vigilant from now about monitoring their bond sufficiency and calculating bond costs. For new importers, it’s already too complicated to understand the customs bond and for those experienced merchandisers it has become necessary to keep an eye on changing tariffs to meet the CBP’s requirements of bond sufficiency.

Rising amount of customs bond

There is certainly a drawback for commercial importers as they are experiencing a large rise in annual continuous customs bond amount due to the several sanctions and duties implemented on their goods.

As per the Customs and Border Protection (CBP), a continuous customs bond must always be no less than 10% of annual duties, taxes, and fees. This includes increased anti-dumping (AD) and countervailing duties (CVD) that altogether causing the minimum bond amount (which is $50k) to set at a higher amount than before.

A customs bond guarantees the obligations to be fulfilled by the importer to the CBP. Ergo small businesses are struggling to post bonds that are worth to cover the added cost of bringing high-rated goods aluminum and steel.

All the importers are advised to work with their respective customs brokers and surety companies to review their transactional history and estimate the duties and taxes for the next 12 months. Remember that CBP is never asleep and its dedicated officers and software technology enables it to regularly monitor and review each bond on file to determine whether they are sufficient to meet with applicable law and regulations.

CBI Customs Bonds & Insurance Inc has been providing trade-related solutions since 1981. We provide Single Entry Bond, Continuous Import Bond, and OTI Bonds NJ in the most competitive rates in the market. CBI is committed to helping small businesses compete with the multinationals couriers seeking to steal bond business from Customs Brokers.

Contact: CBI Customs Bonds & Insurance Inc.

Call: 843-249-1994

Fax: 843-280-6637

Visit: https://cbicustomsbonds.com/

FIND Us: CBI, Inc. 1632 Crosswinds Avenue, North Myrtle Beach, SC 29582