Trumps New Tariffs Could Strain Collection of Customs Fees

The sweeping tariffs on Canadian, Mexican and Chinese products that President Trump imposed on Tuesday could strain the system that collects import duties and the government agencies that enforce those fees, trade and legal experts said.Collecting import duties is usually a routine task, but the new tariffs are being imposed on Mexican and Canadian goods, many of which have been imported into the United States duty-free for many years.Adding to the challenge is the sheer volume of goods subject to the new tariffs — U.S.
imports from China, Mexico and Canada totaled over $1.3 trillion last year, or about two-fifths of all imports.The tariffs apply a 25 percent duty on goods from Mexico and Canada and an additional 10 percent on imports from China.Importers typically employ customs brokers to calculate and pay tariffs to the government agency that collects them, U.S.Customs and Border Protection.Adam Lewis, a co-founder and the president of Clearit, a customs broker, said that it would not be hard to tweak software to collect the new tariffs, but that a crucial part of the tariffs payment system might need significant adjustments.
Importers must buy a “customs bond,” a type of insurance that guarantees the duties will be paid.Mr.
Lewis said some customers might have to increase the size of their bonds to cover the extra tariff payments.“Many of their products were coming in duty-free, and all of a sudden there’s going to be a 25 percent increase,” he said.“It’s quite large.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access.
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