IMPORTANT CHANGES FOR IMPORTERS
Companies importing a significant amount of goods into the U.S. should be aware of a couple of issues on the horizon:
- 1. US Customs & Border Protection (CBP) has announced an increase in the Merchandise Processing Fee (MPF) assessed on all imports whether or not they are subject to any duty, effective with October 1, 2018. While the current rate of MPF at .3464 percent of the value of the goods remains the same, the minimum and maximum charges are going up. The minimum charge for a formal entry goes from $25.67 to $26.22. The maximum charge increases from $497.99 to $508.70. For informal (low value) entries, the fee goes from a flat $2.05 to $2.10.
- 2. Bond Amounts: Importers are required to post a continuous bond equal to 10% of their estimated annual duties, fees and taxes. This is normally handled by the importer’s customs house broker. Companies that are importing goods subject to the new “Trump Tariffs” will see their annual duties increase by as much as 10%-25%. This means that their current import bond will no longer be sufficient. Failure to maintain an adequate bond could lead to CBP holding their goods at the point of import, and then also incurring additional charges for demurrage. Companies that are importing goods subject to the additional tariff rates this year are therefore urged to contact their customs house brokers to discuss the situation with them and if deemed necessary, increase their surety bond.