Article by: Rick Walker, Vice President, TradeInsights, LCB/CCS

The short answer is yes, it can. The recent tariffs imposed by President Trump—25% on imports from Canada and Mexico,10% on imports from China, and the expected 25% tariff on aluminum, and steel under Section 232—are likely to affect your customs bond. These tariffs increase the total duties, taxes, and fees you pay on your imported goods, which in turn raises your overall liability. Since customs bonds are calculated based on a percentage of this liability, typically 10% of the total annual duties, the increased costs due to tariffs may render your current bond insufficient.

It’s advisable to review your import activities, project annual duties now, and consult with your customs broker to determine if an increase in your bond amount is necessary to comply with U.S. Customs and Border Protection requirements. If a larger bond is not placed, U.S. Customs can deem your bond insufficient and stop you from being able to import altogether. You want to review this before CBP issues a bond insufficiency notice.

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 determine 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 selecting the correct bond amount can have serious consequences. Our bond department is happy to assist you with any needs you may have.

Please contact your V. Alexander account team, or you may also contact our Trade Compliance team at tradeinsights@valexander.com with any questions.