Preparation for Incoming Administration Changes
The US Presidential Inauguration was on Monday, January 20, 2025, and the incoming Administration has already discussed the imposition of increased tariffs on a broad swathe of US imports. While not much is known at this time, we recommend to start planning now, as history has shown that these changes can take effect without much notice.
To proactively manage these changes, Schenker recommends the following measures:
- Evaluate Your Customs Bond Amount: US Customs and Border Protection (CBP) requires a continuous bond to cover 10% of total estimated duties, taxes, and fees assessed in the previous 12-month period; however, this amount may not be sufficient to cover higher tariff rates. Consider utilizing forecasts instead if additional tariffs are introduced, to ensure that your bond amount will cover duties owed in the future. If your bond becomes saturated (i.e. exceeds the bond amount), CBP will cancel it and require either a new continuous bond or the use of Single Transaction Bonds, and imports may be delayed in the process. From a risk-mitigation and financial perspective, it will be essential to monitor and keep bond amounts sufficient.
- Open an ACH Account: CBP offers an Automated Clearing House (ACH) option as a fast and paper-free method of paying duties and fees. Clients who do not have their own ACH accounts to pay duty directly to CBP are subject to a 2.5% disbursement fee, minimum $20, on any amount Schenker outlays on your company’s behalf. To save on this fee, Schenker strongly encourages registering for an ACH account. Furthermore, companies approved for a Periodic Monthly Statement (PMS) can pay once a month instead of per transaction. For more information, please refer to CBP’s web site:
Automated Clearinghouse (ACH) | U.S. Customs and Border Protection
To get started with ACH statements, please reach out to your Schenker contact so we can assist you with the application and set-up process.
As additional tariffs are implemented, you can expect to see increased communication from our teams to confirm tariff applicability due to classification, country of origin, etc. The goal of this communication will be to ensure compliance with any changes and avoid subsequent post-entry claims.
We will continue to monitor the situation and send updates as more information becomes available.
Please reach out to your Schenker contact with any questions.
Schenker is proud to be your partner as we navigate the compliance landscape together.