On July 6th, Section 301 tariffs will apply 25 percent duties to the first list of impacted imports from China, with a second list waiting to be published. In addition, Section 232 tariffs are levying 25 percent duties on imported steel and 10 percent on aluminum. Shippers must consider the impact additional taxes will have to the sufficiency coverage of their Customs import bond.
Take a look at the bond limit increase of a company importing $10,000,000 of steel over the course of 12 months:
|Product (duty free)||0.00|
|Limit (10% of duties, taxes & fees) *per CBP||Up to $50,000 in coverage|
|Product (duty free) + Section 232 Tariff (25%)||$2,500,000|
|Limit (10% of duties, taxes & fees) *per CBP||$300,000|
Bond sufficiency is determined over a rolling 12-month period, and while shippers may not need to immediately replace their bond, it’s important to track your coverage needs as trade negotiations continue. Insufficient coverage may lead to rejection, delays and additional costs. Bonds showing egregious deficiencies can be immediately canceled by Customs until a sufficient bond can be produced.
If additional duties will play a significant role in upcoming business, consider speaking to your bond provider or Green freight expert to determine the best course of action.
As Green continues to monitor the situation, stay up-to-date on freight news by following us on Facebook, Twitter, and LinkedIn. For continuous updates, make sure to check out our website at greenworldwide.com.