November 20, 2018 | Industry Insights, Surety Bonds
Introducing the Bond Sufficiency Calculator!
Roanoke Trade is pleased to introduce our Bond Sufficiency Calculator, a new tool to help you determine the appropriate continuous customs import bond amount.
Due to the ongoing “trade wars”, tariffs have recently been increased on many imported goods and materials. These increased tariffs have precipitated a spike in mandated increases to customs bond amounts. Prior to the trade wars tariff implementation, it was rare for Customs and Border Protection (CBP) to issue more than 100 to 200 mandated bond increase notices in a month. In September, CBP issued 2,300 notices!
A bond’s sufficiency status is continually measured by CBP on a rolling basis of the prior 12 months of activity. The bond amounts required by CBP are necessarily calculated on past activity, but these amounts could still be deficient for the future 12 months. This means that if you rely on CBP to determine the correct bond amount, you may receive multiple increase demands in a 12 month period, causing you the frustration of time wasted on bond replacement, additional premium charged, and multiple saturated bond terms complicating your underwriting process. Furthermore, bonds with high amounts often require special underwriting approval, so quick action is important, and being proactive is essential.
To help offset these pitfalls of depending on CBP to determine your bond amount, Roanoke Trade has created the Bond Sufficiency Calculator. Stay ahead of the curve to avoid unpleasant surprises and frequent insufficiency actions imposed by CBP. Calculate your own bond sufficiency. If you determine that bond increase is necessary, then increase your bond to the correct amount the first time instead of dealing with new CBP increase demands month after month.
Should you need assistance, please contact your Roanoke Trade Bond Service Team.