The U.S. Department of Commerce notified Mexico of the intent to withdraw from the 2013 agreement suspending antidumping duties on tomatoes from Mexico.
At this point, withdrawal from the suspension would occur on May 7th, 2019 if a deal cannot be reached. The U.S. Department of Commerce will then resume the anti-dumping duty investigation and issue a final determination. Based on the history of this issue, anti-dumping duty rates are expected to be 4.16 percent to 188.45 percent if the International Trade Commission finds injury to the U.S. tomato producers industry.
The ripple effects of possible anti-dumping duties on tomatoes will impact all companies that are involved in the industry. We would like to remind importers of customs bond requirements and the potential for quick saturation of existing bonds.
Continuous bond amounts are calculated using 10% of the total duties, taxes, and fees paid for the previous 12-month period. The minimum continuous bond amount allowable is $50,000 USD, which covers up to $500,000 USD in duties, taxes, and fees to U.S. Customs and Border Protection (CBP).
The sharp increase in tariffs could result in rapid saturation of your customs bond. If your company’s bond becomes saturated and rendered insufficient by CBP, your company will not be permitted to import goods into the United States until a new bond with a higher limit of liability is established. Please be aware of the duties, taxes, and fees your company is paying and proactively monitor your bond saturation level.
If your bond begins to approach saturation, you will be notified by either CBP, the service provider that manages your bond, or the surety company. If your company is notified, your firm will have only fifteen (15) days to increase the bond.
If your company has questions regarding bond sufficiency, you can contact your service provider. The Willson U.S. Regulatory team can be reached via email transitionus@willsonintl.044d949.netsolhost.com.
Willson International will continue to follow this developing trade issue. We will continue to follow this story. If you are not currently signed up for eNews, you can do so here.