Cut-Rate Direct Marketing Bond Companies Show Large Lapses in Coverage
Have you recently lost bonds to cut-rate direct marketing bond companies? The tide may be turning back to quality service. With CBP tightening the straps on bond sufficiency, it’s never been more important to have a licensed customs broker overseeing your bond.
At IB&M, we have noticed an upswing in bonds being rendered insufficient by CBP, causing large lapses in coverage. This results in hefty single-entry bond fees that importers have no choice but to pay. In many cases, importers opted to buy bonds direct from marketing companies rather than through their customs broker for cost savings. Though these importers saved some money up front, they later had to pay thousands of dollars in single bond fees to avoid further delays and demurrage.
These problems might have been avoided had a licensed broker been there to monitor bond sufficiency and the increase process.
Bond catalyst allows brokers to easily run a list of bonds they have lost to competitors in prior years. You can sort these by effective date order to target at renewal and win them back. The experienced broker knows that quality of service is more important than any price tag. IB&M offers efficient, innovative business solutions to help you stay on top.