CBP Bond Insufficiency Notices
CBP Says my Continuous Import Bond is Insufficient – What do I do?
Continuous Import Bonds
U.S. Customs & Border Protection (CBP) resumed sufficiency reviews in August 2020 after halting their monthly reviews for a three month period at the start of the COVID-19 crisis.
U.S. Customs and Border Protection (CBP) reviews the sufficiency of all active continuous import bonds on a monthly basis and will issue a demand for a larger bond (also referred to as an insufficiency notice) when an importer’s bond has exceeded its capacity. The number of bond insufficiency notices issued by CBP has reached an unprecedented amount, having nearly quadrupled in count since 2017.
The additional tariffs that have been imposed recent years have a direct effect on U.S. Customs continuous import bonds. The bond amount is primarily calculated as 10% of the total duties, taxes and fees paid for the last 12 months, and increased tariffs lead to increased bond amounts.
It’s more important than ever for the importer to work closely with its customs broker to project the amount of duties, taxes and fees it expects to pay in the upcoming 12 months in order to calculate the bond amount best suited for its needs.
This video demonstrates possible ramifications of special tariffs on customs import bond amounts:
How to Process a CBP Bond Insufficiency Notice – Continuous Import Bonds
Contact your Roanoke bond service team for assistance – we will process the termination of the existing bond through eBond and assist you with the filing of the new, increased bond! All bonds are reviewed individually – additional information may need be needed to increase the bond. Contact us without delay when you receive a bond insufficiency notice to avoid any lapse in coverage.
Should additional information be needed, we encourage you to read our Importer’s Road Map to Navigating Financial Requirements and Compliance for Customs Import Bonds for an underwriting explanation and where to find assistance or contact us for a white labeled version!
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 decide 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 select the best bond amount can have serious consequences.
Download our Importer’s Road Map – Guiding the Importer Through the Obstacles of Customs Bond Sufficiency or contact us for a white labeled version!
Bond Amount Calculations
CBP dictates the minimum bond amount required. Refer to these directives and tools for proper guidelines and contact your Roanoke bond service representative for assistance.
- For Single Transaction and Continuous bonds:
- For Continuous Import Bonds:
Contact your Roanoke bond service team for additional assistance!
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