As the landscape of global trade continues to shift, the possibility of new or increased tariffs remains all too real. For brokers and importers, staying ahead of these changes isn’t optional — it’s essential.
At Avalon, this isn’t our first rodeo. We’ve helped clients navigate multiple waves of tariff changes over the years, and we know that preparation makes all the difference. Success starts with accurate data, clear communication, and a strong, proactive approach to compliance.
Here’s how to help your clients stay ahead and protect their supply chains in the face of tariff increases:
- Stay Informed and Keep Clients Updated
Regularly monitor proposed tariff changes by subscribing to government announcements such as CBP and Partner Government Agency (PGA) alerts, trade publications, and industry newsletters. Staying up to date allows you to act quickly and advise clients effectively when regulatory shifts occur.
- Review Import Data and Classifications
Review your clients’ import data to assess the financial impact when new tariffs are announced. Ensure accurate classification under the HTS and verify valuation and country of origin. This review can also reveal opportunities to use duty-saving strategies like bonded warehouses or Foreign Trade Zones (FTZs).
- Forecast Bond Needs Proactively
Don’t wait for a bond insufficiency letter to take action! CBP reviews bond sufficiency on a rolling 12-month basis, so forecasting duties, taxes, and fees for the year ahead is critical. Increasing the minimum bond amount may not account for added tariff exposure, resulting in repeated insufficiencies and stacking liabilities for both the importer and the surety.
- Respond Promptly to Surety Insufficiency Notices
With potential spikes in bond insufficiencies, timely responses to surety messages are crucial. Delays may result in processing issues and increased costs for importers.
- Vet Importers Thoroughly
Be diligent in verifying new or unfamiliar importers. Look for red flags like mailbox-only addresses, lack of U.S. incorporation, or refusal to share identification documents. Confirm if they use a U.S. bank and consider running a credit report. This is especially important when dealing with products subject to AD/CV duties.
- Watch for Suspicious Activity
Stay alert for signs of potential fraud, including:
- Bond requests from new importers who switch filers frequently
- Importers switching sureties due to prior claims
- Bond requests from freight forwarders lacking proper vetting
- Use MerlinTM Tools for Monitoring
Avalon’s Merlin portal offers tools to help manage bond sufficiency. Set up email notifications—starting at a 50% threshold to address sufficiency issues early. Use the Customs Bond Calculator to determine appropriate bond amounts and avoid underestimations.
The Avalon team is available to discuss the impact of increased tariffs, bonding requirements, or additional insurance coverage needs such as Errors & Omissions Insurance, Regulatory Defense, and Trade Credit Insurance.
If you have questions, please don’t hesitate to reach out—we’re ready to assist you.
