Bond Insufficiency

Customs and Border Protection will send out a bond insufficiency notice upon reviewing a continuous customs bond and determining it has exceeded its capacity. A bond amount is typically calculated to equal at least 10% of the total duties a company expects to pay in 12 months of importing. Bonds are required for any import that exceeds $2,500 in value.

The minimum bond size is $50,000, which is sufficient for a business that expects to pay up to $500,000 in duties and related customs fees. Should your company's fees exceed the coverage, CBP issues the insufficiency notice. In the event of rapidly rising tariffs, such notices become more common.

Should you receive a bond insufficiency notice, it's recommended you reach out to a customs brokerage to determine whether the bond can be increased or if it must be terminated and a new bond issued in its place. This will be based on updated calculations of any import fees and duties.

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