customs brokerage, freight forwarding and truck transportation

Important: Reassessment of USA Importer Bond Levels

: US Customs

U.S. Customs Bond Sufficiency Being Impacted by Safeguard Tariffs 2018-09-05

As each of the safeguard tariffs go into effect, importers will need to consider the impact of the additional tariffs to their Customs bonds. Bond insufficiency is a significant concern for importers whose goods are now or may be subject to one of current or proposed tariffs.
 
Bond insufficiency will negatively impact an importer’s ability to conduct business, and will lead to additional costs and delays if not monitored or addressed timely. An importer may not require a new bond immediately, but will need to consider the increased duty amounts when the bond renewal period comes up. An importer may also be required to provide additional documentation at time of renewal, including financial statements, to the surety company.
 
Example: Company imports $5,000,000.00 in goods that were previously duty free and are now impacted by a 25% safeguard tariff (within 12 month period).
 
 Current Bond  Duty Rate Amount: Free   $0.00
 Bond Calculation: 10% duties, taxes &   fees  $50,000.00*
 Possible New
 Bond with
 Safeguard Tariffs
 Duty Rate Amount: Free (regular) + 25%   Safeguard Tariff  $1,250,000.00
 Bond Calculation: 10% duties, taxes &   fees  $125,000.00**
 
* $50,000.00 is the minimum bond limit
** 10% of $1.25 million, rounded up by increments of $100,000.00
 
Customs bonds purchased through Milgram are being monitored by our surety company, and we will pass along any messages received of the bond nearing or at insufficiency.
 
If bonds were not purchased through Milgram, we strongly recommend that importers reach out to the broker or surety company directly to monitor their bond’s status.
 
If you have any questions, please do not hesitate to contact Jamie Staveley at Milgram for any further information.

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Milgram has developed a reputation for providing the highest level of service in the fields of Customs Brokerage, International Freight Forwarding and Ground Transportation.

We strive to make things simple for our clients by doing them better, and work hard to meet and exceed our clients expectations.

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Milgram has developed a reputation for providing the highest level of service in the fields of Customs Brokerage, International Freight Forwarding and Ground Transportation.

We strive to make things simple for our clients by doing them better, and work hard to meet and exceed our clients expectations.

Montréal514-288-2161Dorval514-695-3585Toronto905-673-1568Toronto Warehouse905-677-3997Vancouver604-821-1677Toll-Free1-888-MILGRAM (645-4726)
FMC Organization No. 024711
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