CBP can flag a bond as insufficient when the bond amount initially applied is too small compared to the importer’s volume and duties activity OR if the entry required for a specific product, demands additional coverage from other agencies such as FDA or USDA.
As a consequence of above mentioned changes, coverage for many of the current continuous bonds may become inadequate to meet the new and possible upcoming duty rules. In order to maintain CBP compliance, adjustments to the annual bonds may be necessary, which could result in additional expenses, the need for updated financial reports, and other requirements.
To minimize the potential impact of these adjustments, it is imperative to forecast the import volume and cautiously plan the (new) bond amount considering all factors such as country of origin and estimated duty charges incurred in the past 12 months as well as the estimated to be faced in the upcoming year.
Our highly trained team is here to assist you with any questions or concerns and to guide you through the process of updating your bond if necessary. Being a step ahead with proactive planning is the key to avoid delays on customs clearance and of course extreme circumstances of bond saturation notice from CBP and release delays on your shipments.