Custom Brokers/Importers and the New Import Tariffs
Managing Increased Tariffs
By now, the country is well aware of the new importation tariffs that have been levied on commodities being imported from other countries such as China. The tariffs currently being assessed are anywhere from 10 to 25%. As a result, importers are now forced to pay a significantly higher amount in federal taxes or import duties. To keep their business compliant, importers must find a way to keep up with these costs and the impact they have on acquiring the proper customs bond limit.
Coping with Higher Costs
The steel industry, for example, is just one of many commodities experiencing a broad impact with tariffs going up. As tariffs are levied, the need for a higher customs bond limit may exist. Here’s how that works: an importer is now required to pay an increased amount to import the commodities necessary to run its business. The custom broker must then obtain a customs bond to cover the increased tariff for the importer. From there, the customer is now able to import their commodities, turn a profit, and use part of that profit to pay off their import duties. It’s the circle of importation life and it hinges heavily on surety companies being able to provide the necessary increased customs bond limit. That’s the greatest value that can be added by custom brokers and it should be noted that ProSight has met all recently requested increased limits on customs bonds.
Taking Custom Broker Service a Step Further
Custom brokers should be ensured a worry-free experience when providing services such as customs bonds to their import clients. Fortunately, with the importation industry becoming fully electronic, the acquisition of important details can be managed at a much faster rate. This opens up more time for custom brokers to focus on finding the right port for their clients’ commodities, contacting freight companies, and efficiently getting goods into commerce. In the meantime, surety companies, such as ProSight, use the easily accessible electronic information to fully manage the entire process of creating the proper bonding agreement that custom brokers and their import clients need. It is this type of support that decreases stress despite increased bond limits.
-Rob Bednarik, Niche President of Professional Services and Real Estate