Surety Says CBP Appears Unlikely to Reduce Number of Bond Increase Letters
An increase in CBP bond increase letters in recent years doesn't seem likely to dissipate anytime soon, International Bond and Marine Brokerage said in a blog post. The increased tariffs during the Trump administration led to more bond notices from…
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CBP (see 1807260011) and during April, "IB&M saw its highest level of monthly bond increases since former President [Donald] Trump was in office," it said. "What does that mean for customs brokers and their importing clients? More of the same we’re afraid," it said. "Higher Tariffs on Chinese merchandise and ensuing Bond Increase letters do not appear to be going away any time soon. We recommend customs brokers advise importers not to simply take the bare minimum bond amount requested on CBP's increase demand letter. We instead recommend importers go with a bond amount based on CBP’s guidance to Forecast the next 12 months of anticipated duties to avoid Bond-Stacking Liability. Customs Brokers should use entry data from CBP and work closely with clients to avoid insufficiency letters, demurrage, unnecessary collateral, cash tie-ups, and additional single entry bond fees."