15 Aug US Importers Hustle To Manage Higher Bond Outlay
US importers have had to significantly increase the level of bond protection required to cover anticipated tariffs.
The rapid increase and ongoing volatility around tariff rates has resulted in a substantial financial impact on importers as they are required to predict the amount of tariffs they will pay in the future in order to calculate the bond coverage they need to maintain. In most cases, they’re also required to provide collateral that impacts their cash flow.
US Customs and Border Protection (CBP) requires importers to maintain a bond amount of at least 10% of the duties they estimate they will owe over a 12-month period, with mandated minimum continuous coverage of $50,000.
However, due to the higher and ever-changing tariff rates, the total sum of the bond needed has increased exponentially and predicting an accurate bond amount has become difficult.
This issue is compounded by the fact that importers cannot just increase their existing bonds; they must write new bonds for the higher value required, however they don’t receive a refund on the existing bond. This “stacking” of bonds creates liability complexity and further financial pressure on importers, creating a challenging environment for all.
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