JETRO's New York office reported on September 3, 2025, about the increasing demands from U.S. Customs and Border Protection (CBP) for higher customs bonds from importing companies.
Background of Bond Increases
The implementation of tariffs based on the International Emergency Economic Powers Act (IEEPA) and Section 232 of the Trade Expansion Act of 1962 has significantly raised import tariff rates. This has led to a sharp increase in tariff payments by importers, prompting CBP to determine that existing bond amounts are insufficient to cover the risk of unpaid duties.
Demands for additional bonds are particularly increasing for importers of Section 232 tariff items (steel, aluminum, derivatives, and auto parts) and imports from countries with high tariff rates, especially China.
Overview of Customs Bond System
A customs bond is a guarantee system that covers situations where importers cannot pay duties or penalties. For cargo with an invoice value of $2,500 or more, importers must contract with a CBP-approved surety company and deposit the required bond amount.
There are two types of bonds: Single Bond for one-time use and Continuous Bond valid for one year (renewable). CBP sets the minimum requirement for Continuous Bonds at 10% of annual duty and fee payments or $50,000, whichever is greater.
Impact on Companies
Japanese companies in the U.S. are reporting serious impacts. A Japanese customs broker noted that "since the additional tariffs, bond shortages have occurred particularly for clients handling Chinese cargo." A Japanese auto parts company in Kentucky reported receiving CBP notification to increase their customs bond to nearly five times the current amount due to 50% steel and aluminum tariffs on some imports.
The National Customs Brokers & Forwarders Association of America (NCBFAA) has pointed out risks of increased financial statement requirements and higher bond and collateral demands as importers' tariff obligations increase. Concerns also exist about customs delays due to increased issuance of Request for Information (Form 28) and Notice of Action (Form 29) from CBP.
Required Corporate Response
While the bond payment obligation falls on the importer of record, customs brokers often handle surety company interactions, leading to cases where end-user companies are unaware of bond increase requirements.
To avoid customs holds due to insufficient bonds or surety company refusals, companies need to:
- Understand current bond amounts and requirements
- Consult early with customs brokers and surety companies
- Prepare financial documentation
- Consider and implement risk countermeasures
With U.S. tariff policy remaining fluid, importers urgently need to establish comprehensive risk management systems including customs bond management.