In our October 2018 News Alert we advised interested parties that Customs was increasing their reviews of Customs Bond sufficiency due to the new China Tariffs. This has become even more critical now with the previously announced increase in duties to 25% for List 3 products, and especially in light of the proposed additional duties for the List 4 products. List 4 effectively covers all of the products imported from China not previously covered by lists 1, 2, or 3. We want to take this opportunity to restate that importers should review their Customs bond amounts to ensure they will be sufficient going forward.

Customs determines bond amounts to be 10% of the duties collected in a year, subject to a minimum bond amount of $50,000.00. Customs has been very active in enforcing bond amounts, and receiving a Customs notice of an insufficient bond at the time of importation can create delays and additional costs. In light of the additional increase in List 3 Chinese duties, and the proposed List 4 duties, importers would be prudent to conduct a bond sufficiency review at this time.

If you have any questions, please contact your V. Alexander account team who will be happy to assist you in evaluating your bond sufficiency.

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10/10/2018

Because of the increased duties for certain designated products from China, importers should review their Customs bond amounts to ensure they will be sufficient going forward.

Customs determines bond amounts to be 10% of the duties collected in a year, subject to a minimum bond amount of $50,000.00. Customs has been very active in enforcing bond amounts, and receiving a Customs notice of an insufficient bond at the time of importation can create delays and additional costs. In light of the additional Chinese duties, importers would be prudent to conduct a bond sufficiency review.

We are happy to assist you, so please contact your V. Alexander account team!