News

Our thanks to Lee Hardeman for this valuable information

Apr 30, 2025

 

New tariffs force a change in our duty payment requirements

 

The new tariffs have precipitated a HUGE increase in duties that we must collect from our customers – in aggregate they have more than doubled!   Historically, with relatively smaller duties, we have usually been able to “float” some duties for a few days after they were due. Unfortunately, as a small company, we will no longer be able to do this – we just do not have the resources. Effective with duties due in May, we must RECEIVE your full duty payment at least 2 working days before the duty due date in the “Remarks” section of our invoices.  If we fail to receive your duty payment timely, we will probably not be able to pay your duties timely, which will result in not only penalties from Customs, but other sanctions as well, up to and including requiring “live entries” (no immediate delivery, and entry summary submitted with all duties, fees, taxes, etc., before Customs release).  This would adversely affect your import program, so PLEASE get us your duty payments timely. As for our fees and other charges, the due date at the bottom of the invoice is still good. This just applies to duty payments.

 

For those of you on our periodic monthly statement (PMS),  your duties will be due the 15th of the month following entry date.  For example, if the entry date is 4/30, we must RECEIVE your duty payment by 5/15, also as stated in the remarks section of our invoice. Another example, if the entry date is 5/1-5/31, we must RECEIVE your duty payment by 6/15. Again, your duty payment is due in our office the 15th of the month following entry date, so please get us your duty payments timely.  As for our fees and other charges, the due date at the bottom of the invoice is still good.

 

For those of you on your own PMS, our new policy will not affect you.  We will continue to advise the amount of duty due on your PMS statement in advance of the due date.  If you do not have your own PMS statement, please contact us and we will set you up if you qualify.

 

We DEEPLY regret the necessity of this action, but please understand that duties and fees assessed on your entries are your responsibility! As a small company with limited resources and the dramatic increase in duties we are experiencing, we must RECEIVE your duty payments by the duty due date in the Remarks section of our invoice.

 

Thank you in advance for your understanding and cooperation.

 

New tariffs will drive up collateral for customs bonds (From IB&M)

 

International Bond & Marine, our surety that underwrites most of your bonds, advises that the new tariffs will most probably cause an increase in collateral if you are required to have that in place with them.  We strongly urge you to carefully consider the duties, taxes and fees you will owe customs for the 12 month period your bond is active and have your bond amount set accordingly.  We have seen many importers underestimate this, and Customs declares the bond to be insufficient, giving the importer just 2 weeks to get a new bond in place.  Meanwhile, the old bond must retain the existing collateral, usually for 5 years or until ALL entries on that bond are liquidated.  The new bond will require ADDITIONAL collateral, of course at additional expense. The new tariffs are expected to create MANY insufficient bonds,  Please contact us if you have any questions.

 

Please visit our website at

 

www.LHCB.com