Friday, June 15, 2018
HOW WILL SECTION 301 TARIFFS AFFECT YOUR BOND SUFFICIENCY?
The President of the United States announced plans for tariffs on imports of goods from China that may impact your continuous bond. See FHK trade alert here.
In addition to the Section 232 proclamations effective June 1, wherein importers saw a 25% increase on steel imports and a 10% increase on aluminum imports, now Section 301 imposes an additional 25% on certain goods from China.
Continuous Bond amounts are calculated on 10% of the total duties, taxes, and fees for the previous twelve month period so the need for a new bond may not be immediate. CBP actively reviews continuous bond sufficiency and may send a letter advising of insufficiency and require an increase. If CBP determines there is an egregious deficiency, the continuous bond may be rendered insufficient, causing delays and additional costs for the importer. Based upon the recent revelations regarding these additional tariffs, the new bond limits required may be significant.
Importers are ultimately responsible and must stay updated on changes that occur regarding their bonds. Be sure to run ACE reports or contact us to assist with entry reports to stay on top of your import activity.
For more information, please reach out to us at 316.721.8980 with any questions you may have.