Rare Medical Condition Affects Importers: Losuvimp Ortsitis

Throughout the years importers have witnessed the many effects the economy has on their import practices.  Today’s economic times are no different, but this year a strange medical and highly contagious virus has blindsided many U.S. importers.  Losuvimp Ortsitis has made its way to the U.S. where vaccinations are still in the testing phase.  The World Customs Organization predicts that global trade will fall 9% in value this year.  We have reason to believe the majority of this sudden downturn is due to Losuvimp Ortsitis.   This condition strikes fast are you ready?

So what is Losuvimp Ortsitis?

In medical terms Losuvimp Ortsitis (Loss • of • imports • itis) is the inflammation of the loss of one company’s import practices.  This condition is found mainly in small to medium sized enterprises but no matter how severe, the side effects are not always permanent.  Many companies who are diagnosed with Losuvimp Ortsitis decide to purchase single entry bonds in order to ensure their shipments.  This may seem like a temporary cost savings, but in most situations this is the least economical decision and may actually feed the virus.  Depending on the value of the shipment a single entry bond could be anywhere from $55 - $400.

Is there a cure?

At this time no preventative cure is available to stop your company from experiencing Losuvimp Ortsitis, however there is a prescription to help alleviate the symptoms. 

Introducing the Low Volume Continuous Import Bond (LVI):

Importers who have always or now import less than 5 shipments with less than $5,000 in duties NEED this bond.  Companies such as TRG offer special pricing on the continuous import bond allowing companies to maintain their practices even at a low volume.  This bond is can be priced as low as $200 per year.

This bond is the same as any other continuous import bond, but special provisions all for the lower pricing.  If you decide to apply for this bond you here are some typical "special conditions" you would have to meet in order to qualify for the continuous US customs bond.

Low-Volume Importer Special conditions:

•Entries per year must be less than 5. Should total entries grow to 5 or more during any 12 month period of the bond, you will be billed the difference between the Special rate and the Standard rate.

•Total duties paid to CBP per year must be less than $5,000.

•Should duty bills reach or exceed $5,000 during any 12 month period of the bond term, you will be billed the difference between the Special and the Standard rate.

•Discounted multi-year pricing is available if you must revert to Standard pricing.

•Financial statements may be required by underwriting.

•This offer does not apply to importers subject to FDA regulations or Anti-Dumping or Countervailing Duties.

•The underwriter should be an A.M. Best A-Rated company.

The fact of the matter is that is you are purchasing multiple single entry bonds in one year, you are probably over paying for your US customs bond.  If you choose to go for a low volume bond I suggest making sure the pricing on the company's "standard rates" for the continuous customs bonds are also below the industry average in pricing.