CBP (US Customs) determines that the current bond limit is no longer adequate based on the past 12 months of duties, taxes, and fees. Following that, US Customs (US Customs) sends a letter of insufficiency to the importer, often with a copy to the surety. US Customs usually allows time for the situation to be rectified.

Three options are available to the importer once the letter has been sent:

1. In the event that no action is taken, the current bond will become insufficient 15 days after the date of the letter. A bond would remain, but no entries would be permitted.
2. In the event that the surety submits a termination request within 15 days of receiving the letter, the termination request will take effect 30 days after submission. As a result, the bond would remain sufficient until it is terminated.
3. Sureties can submit bonds with the minimal bond limits specified in the letter to remain active after the current bond expires.

Please note that the amount in the letter is the minimum CBP will accept. If an importer needs a bond limit higher than what CBP has provided, they should forecast their next 12 months of import activity.