June 20, 2018 | Industry Insights

Bond Sufficiency Alert: Consumption Goods from China

Share This:
Featured Image

By: Colleen Clarke – Vice President, Surety Trade Relations

As announced by the U.S. Trade Representative in Docket Number USTR-2018-0018 on June 15, 2018, the White House announced that the U.S. will impose retaliatory duties of 25% on goods valued at $34 billion covering 800 tariff numbers where the country of origin is China and the goods are entered for consumption, or withdrawn from warehouse for consumption, on or after July 6, 2018.

In our notice dated June 4, 2018 we advised customs brokers to be aware of the impact on bond sufficiency of the Section 232 duties on steel and aluminum. We advise the same alertness to sufficiency for these Section 301 duties.

The 25% duties on Chinese goods will affect your importer clients’ bond amounts. As you know, one of CBP’s priority trade issues is Revenue Collection. The Office of Finance in Indianapolis is tasked with ensuring the government is protected and they perform monthly sufficiency reviews to guarantee such protection.

Although it is understood that it is the importer’s responsibility to ensure its bond is sufficient under informed compliance requirements, Roanoke understands that customs brokers strive to assist their importing clients to meet this requirement. To ensure your clients’ bonds are not rendered insufficient, we highly recommend that you be proactive and work with your clients to forecast the amount of duty they will be paying in the coming months.

Remember that the bond amount is calculated based on 10% of the total duties, taxes and fees (including ADD/CVD) paid OR payable in the last 12 months. The effective/anniversary date of the bond has no bearing on the calculation.

We are committed to assisting the customs brokerage community and are vocal with our government leaders in explaining the harm these high tariffs will cause the trade industry and consumers. We expect these barriers to trade to continue and will voice our concerns as they arise.

Roanoke Trade can assist you in calculating the proper bond amount. Call your Bond Service Team today or run reports through FastBond™ on any Roanoke import bond if you are the broker of record.

Roanoke Trade assists customs brokers and their clients to procure a variety of surety products including U.S. Customs Bonds. The importing landscape is constantly changing and it is critical to have a partner in place to keep you informed of new regulations and potential exposures.

 

Share This:

Related


Thank You to Karen Groff

We have important news to share with you. Karen Groff, President of Roanoke Insurance Group, has decided to leave the organization. Although our hearts are heavy with this news, we respect her decision and wish her all the best in her future endeavors. Karen played an integral role in Roanoke’s success over the past 30 years and solidified “The Roanoke Way” during her tenure as President. In her own words, Karen shares: “I will always treasure my time spent with Roanoke colleagues, clients and partners. The strong engagement and sense of community shared in this industry have been a constant inspiration […]

Industry Insights

How to Protect Your Company from Nuclear Bodily Injury Verdicts

The liability landscape for the trade and transportation industry is changing. Carrier accidents on the road resulting in bodily injury and property damage (BIPD) claims pose a real financial threat to brokers, forwarders, and other transportation intermediaries. Recently, the number of large trucks involved in fatal crashes and the resulting jury awards have skyrocketed. Inconsistent application of the law has put the burden of these “nuclear verdicts” on not just the carriers but also the broker-forwarders responsible for hiring the carriers. This volatile litigation landscape and the rise in “nuclear verdicts” has specifically led to two related issues for transportation […]

Industry Insights

Unlocking Success: The Key Elements of Carrier Vetting and Managing Liability

By: Andrew Johnson, Account Executive, Roanoke Insurance Group Inc. The freight brokerage industry as we know it today began in the late 1970s and early 1980s, around the time of the Motor Carrier Act of 1980. Before the passage of this landmark legislation, regulations were too restrictive to make freight brokerage a viable business segment. Fast-forward to today, and most motor carriers, by authority definition, also have a freight brokerage operation. Freight brokerages fulfill a vital service in modern logistics, connecting independent carriers with loads and drastically reducing empty repositioning moves. Brokering also allows carriers to complement their assets by […]

Industry Insights

Roanoke is the leading provider of insurance and surety solutions for transportation and logistics providers. In fact, we are recognized as the most reliable source for U.S. customs bonds.

Contact

If you have any questions or need help, feel free to contact with our team.

800-762-6653
US Flag

US CORPORATE HEADQUARTERS

1501 E. Woodfield Road

Suite 400W

Schaumburg, IL 60173


Canada Flag

CANADA CORPORATE HEADQUARTERS

390 Bay Street

Munich Re Centre, 22nd Floor

Toronto, ON M5H 2Y2

Solutions that Go the Distance.

© 2024 Roanoke Insurance Group Inc.

Better Business Bureau logoCoverholder at Lloyd's logo