Contact an Insurance Specialist

Customer Login

CBP Bond Insufficiency Notices

Last updated on October 15th, 2019

CBP Says my Continuous Import Bond is Insufficient – What do I do?

Since the onset of the trade remedy tariffs starting in the spring of 2018, the amount of additional duties owed for imports of aluminum, steel, and goods where the country of origin is China exceeds $35 billion. Except for specific country or product exclusions, special tariffs are now assessed on goods subject to Section 232 and Section 301 duties:

Section 232 Tariffs

CommodityTariff AmountEffective Date
Steel25% tariff3/23/2018
Aluminum10% tariff3/23/2018

Section 301 Tariffs – China origin

CommodityTariff AmountValueEffective Date
List 125% tariff$34 billion
07/06/2018
List 225% tariff
$16 billion08/23/2018
List 310% tariff
25% tariff
$200 billion09/24/2018
06/15/2019
List 4A15% tariff09/01/2019
List 4B15% tariff12/15/2019

Section 301 Tariffs – European Union origin

CommodityTariff AmountValueEffective Date
Large Aircraft10%$7.5 billion10/18/2019
Agricultural Products25%$7.5 billion10/18/2019
Possible Additional CommoditiesTBD$7.5 billionTBD

Continuous Import Bonds

These additional tariffs have a direct effect on U.S. Customs continuous import bonds as the bond amount is primarily calculated as 10% of the total duties, taxes and fees paid for the last 12 months.

U.S. Customs and Border Protection (CBP) reviews the sufficiency of all active continuous import bonds on a monthly basis and will issue a demand for a larger bond (also referred to as an insufficiency notice) when an importer’s bond has exceeded its capacity.  The number of bond insufficiency notices issued by CBP has reached an unprecedented amount, having nearly quadrupled in count since 2017.

Historical Bond Increases

YearCount
2006-20172,070 average
20185,821
2019 (9 months)10,044

It’s more important than ever for the importer to work closely with its customs broker to project the amount of duties, taxes and fees it expects to pay in the upcoming 12 months in order to calculate the bond amount best suited for its needs.

This video demonstrates possible ramifications of special tariffs on customs import bond amounts:

Case Study: Possible Effects of Special Tariffs on Bond Amount Calculations

 

How to Process a CBP Bond Insufficiency Notice – Continuous Import Bonds

Contact your Roanoke Trade bond service team for assistance – we will process the termination of the existing bond through eBond and assist you with the filing of the new, increased bond! All bonds are reviewed individually – additional information may need be needed to increase the bond. Contact us without delay when you receive a bond insufficiency notice to avoid any lapse in coverage.

Should additional information be needed, we encourage you to read our Importer’s Road Map to Navigating Financial Requirements and Compliance for Customs Import Bonds for an underwriting explanation and where to find assistance or contact us for a white labeled version!

Read Now

 

When an importer receives a bond insufficiency notice from CBP, it’s key that they act promptly and that they do not rely on the minimum bond amount shown on the letter. The bond holder needs to decide what amount is necessary to protect their interests and limit costs. An experienced customs broker is the best source of assistance on customs bond sufficiency matters. Bond holders should work with customs brokers to make sure their bond and other CBP-related needs are addressed in an informed and professional manner. Failing to make accurate projections and select the best bond amount can have serious consequences.

Download our Importer’s Road Map – Guiding the Importer Through the Obstacles of Customs Bond Sufficiency or contact us for a white labeled version!

Download

 

Bond Amount Calculations

CBP dictates the minimum bond amount required. Refer to these directives and tools for proper guidelines and contact your Roanoke Trade bond service representative for assistance.

 

 

 

Contact Us

Contact your Roanoke Trade bond service team for additional assistance!