Why Do Bond Deficiencies Occur?

CBP reviews bonds monthly. If your bond no longer covers your obligations, you'll receive a bond insufficiency notice. Rising tariffs (such as Section 201, 232, and 301 duties) have increased deficiencies dramatically.

How CBP Calculates Bond Sufficiency:

• Bond must equal 10% of duties, taxes, and fees (DTF) paid in the past 12 months.
• Minimum continuous bond: $50,000.
• If your bond reaches 100% of its capacity, CBP deems it insufficient.

Consequences of Bond Deficiencies

• Importers usually have 30 days to replace an insufficient bond.
• Failure to act means CBP will stop shipments at the port.
• Bonds cannot be amended; they must be terminated and replaced.

Best Practices:

• Monitor your DTFs regularly.
• Work closely with your surety provider.
• Consider projected tariff exposure.
• Respond quickly to deficiency notices.