Trade Risk Guaranty explains how to handle a liquidation damage claim or a supplemental duty bill when they are issued by Customs and Border Protection. An in-house claims expert also discusses how and when these claims are issued on your U.S. Customs Bond. Watch the full Webinar presentation here: https://youtu.be/TYwHfY1dbZU Read the Transcript: https://traderiskguaranty.com/trgpeak/webinar-process-liquidation-entering-goods-united-states/

1. What To Do When You Receive Supplemental Duty
Bills or Liquidated Damage Claims
WEATHER THE STORM

2. Nick Esposito
Marketing Executive
Bozeman, Montana
Trade Risk Guaranty Brokerage Services, LLC
nick.esposito@traderiskguaranty.com
1st

3. Rachel Bauman
Senior Bond Claims Specialist
Bozeman, Montana
Trade Risk Guaranty Brokerage Services, LLC
rachel.bauman@traderiskguaranty.com
1st

4. • Located in Beautiful Bozeman Montana
• Established in 1991
• Direct-to-Importer Business Model
• Over 10,000 U.S. Customs Bond & Marine Cargo
Insurance Clients
TRADE RISK GUARANTY BROKERAGE SERVICES, LLC

5. ON FACEBOOK
JOIN THE CONVERSATION

6. TODAY’S WEBINAR TOPICS
When Do Liquidated Damages Occur and the
Timeline of a Liquidated Damages Claim
When Do Supplemental Duties Occur and the
Timeline of a Supplemental Duty Bill

7. ENTRY PROCESS

8. Entry Process Timeline

9. Definition of Liquidation Damages
Liquidated damages are predetermined penalties
assessed against importers that have violated the
conditions of their Customs bond.

10. CUSTOMS BOND CONDITIONS

11. Customs Bond Conditions
http://bit.ly/bond-conditions
(Link to the eCFR)
https://traderiskguaranty.com/trgpeak/customs-
bond-conditions/

12. WHEN DO LIQUIDATED DAMAGES OCCUR

13. When Do Liquidated Damage Claims Arise?

14. LIQUIDATED DAMAGES TIMELINE

15. The Timeline of a Liquidated Damages Claim
Pay the Claim
Petition the Claim
OR

16. What Does a Liquidated Damage
Claim Look Like?

17. Form CF-5955A
Page 1

18. Form CF-5955A
Page 1

19. Form CF-5955A
Page 2

20. Form CF-5955A
Page 2

21. Top Four Types of Liquidated Damage Claims
1. Non-Payment (19CFR§113.62 (a); Agreement to Pay Duties, Taxes, and Charges)
2. Late Payment (19CFR§113.62 (a); Agreement to Pay Duties, Taxes, and Charges)
3. Re-delivery (19CFR§113.62 (d); Agreement to Redeliver Merchandise)
4. Violations to Temporary Imports Under Bond

22. WHEN DO SUPPLEMENTAL
DUTY BILLS OCCUR

23. Definition of Supplemental Duty Bills
During the process of liquidation the final duty rate
is determined for an entry. If CBP determines that a
higher duty rate should have been paid for the
goods at the time of entry, then a Supplemental
Duty Bill is issued by the Revenue Department.

24. When Do Supplemental Duty Bills Arise?

25. SUPPLEMENTAL DUTY BILLS TIMELINE

26. Definition of Formal Demand on Surety
Customs determines a bill issued to an
importer will now also become a liability to
the surety who issued the bond.

27. The Timeline of a Supplemental Duty Bill

28. What to do When You Receive a
Supplemental Duty Bill?
Pay the Claim
(before the 30 day mark)
Removes the pressure of the Surety
Still able to protest of the liquidation
Interest accrues in your favor until the protest is
determined

29. COVERED IN TODAY’S WEBINAR
When Do Liquidated Damages Occur and the
Timeline of a Liquidated Damages Claim
When Do Supplemental Duties Occur and the
Timeline of a Supplemental Duty Bill

30. SUBMIT YOUR QUESTIONS
AND/OR FEEDBACK

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