b'4American Journal ofTransportation ajot.comSPONSORED CONTENTManaging Customs Bond sufficiency in a chaotic trade climate is absolutely paramount for importersTrade remedy tariffs areindemnityandcollateralliability for single transactionbond.Iftheimporterhadofduties,taxes,andfees no longer headline news, butandthiscollateralcouldbebonds to avoid any delays inprojecteditsbondproperlypaidinarolling12month theyarestillrelevantandmore than a one-time require- clearing its goods. when CBP required the bondperiod, subject to a $50,000 poseauniquesetofdelayment.ShouldcollateralbeItisunlikelythatanbeincreasedfrom$50,000minimumbondamount. anddisruptionconcernsforrequired,theimporterwillimporterwillreceivecreditto$100,000andobtainedaLookback12months,look importers. High among theseincurcostswithitsbanktoon a saturated bond, so therebondfor$200,000instead,ahead to the next 12 months, concerns are insufficient Cus- open the line of credit. will be extra costs for addi- they would have limited theandusewhichevernumber toms Bonds. With no end inThe insufficiency demandtional bonds issued.total exposure for liquidatedis larger. Always seek guid-sight for any relief from theseletter from CBP has a shortHavingmultiplebondsdamages to $250,000 for bothancefromalicensedcus-tariffs,importersandtheirdeadlineforcompliance.issuedsubjectsboththethe importer and the surety. tomsbrokerwhenselecting customs brokers should con- Supposeunderwritinginfor- importerandthesuretytoThebestwaytoavoidtheproperbondamount. tinue to monitor their importmationisrequiredbytheliquidateddamagesinthetheseextracosts,burdens,Customsbrokerswhowork bonds for sufficiency closely. suretycompanytoconsideramountofeachbond.Forandunnecessaryliabilitywith the right Customs Bond Since the initial enforce- writingtheincreasedbondexample,iftheimporteristoobtainabondintheprovidercanprovidetools mentoftradetariffsbeganamount.Inthatcase,thereincreases its bond three timesproperamount,especiallytohelptheimporterremain undertheTrumpadminis- are increased chances of run- inoneyearintheamountssince maintaining a sufficientproactivewiththisprocess. trationin2017,thenumberningoutoftimetogettheof$50,000,$100,000andCustoms Bond is within theAvoiddelayanddisruption of insufficiency demand let- bond processed within CBPs$200,000,theyaresubjectimporters control.Remem- in your business by vigilantly tersthatU.S.Customsanddemandedtimeframe.Thentopotentially$350,000inber,thestandardcontinu- monitoring your import bond BorderProtection(CBP)the importer may incur evenliquidateddamagesshouldousCustomsImportBond(MONITORINGcontin-sent to importers has steadilymoreadditionalcostsandCBPissueaclaimoneachamountcalculationis10%ued on page 13)increased, reaching an unprec-edentedhighpointin2019 of 13,477.As a result of the increasedtariffs,in2021, CBPcollectedalmostthree times the duty, taxes and fees as it did in 2017.These tariff increases also impactsuretycompanies, having resulted in over $1 bil-lion in additional liability for thesuretyindustry. Accord-ingtoCBPstatistics,there are less than ten surety com-paniesintheUnitedStates that file CBP bonds and theyAS ONE, WE CAN. are responsible for 243,000+ continuous import bonds cur- ONE DELIVERS YOUR EVERYDAYrently on file. The liability for these bonds is approximately $25 billion. With weekly liner services to all major trade lanes around the world, Ocean Network ThesuretyispartoftheExpress (ONE) o\x02ers customers a superior level of service and convenience when it 3-partycontactofaCustomscomes to ocean freight shipments between any key regions of the world. This is Bond, which is a type of suretyfurther complemented by an ongoing eet expansion program and the use of bond.TheCustomsbondisenhanced operational and service technologies, through which ONE is better posted for CBPs benefit (the obligee).Thebondprincipalequipped to connect with customers now and in the future. or importermust post the bondtoassuretheimporters compliance with all laws and regulations governing the import-erstransactionswhilealso guaranteeingpayment to CBP. The third- party on the contract is the surety company, a U.S. Treasury-approvedcompany that guarantees the bond prin-cipal will meet its obligations andiftheprincipaldoesnot, the bond states the surety com-pany must do so. The bond also allowsthesuretytodemand reimbursement from the bond principal on any claims it may payinordertomakeitself whole again.Surety companies moni-tor each importers importing activities,financialstrength, and overall risk individually. Should the importer need to increaseitsbondmultiple timesthroughoutoneyear, itcanhaveseriousnegative ramifications, including:Theimporterwilllikely experienceunderwritingscru- Ocean Network Express(North America) Inc. 8730 Stony Point Parkway, Richmond, VA 23235tinyfromthesurety.The surety may require additionalCustomer Service ( 844 ) 413 - 6029 www.one-line.cominformationsuchasfinan-cial statements, statement of'