There are countless methods entrepreneurs and investors use to gauge their decisions and make informed choices regarding their investments. Although the use of some of these informational tools may not affect the decisions of every business owner, there are some systems that can provide a useful glimpse into the global trade economy. Let’s take a look at one of Wall Street’s most useful metrics in relation to shipping: the Baltic Dry Index, or BDI.
The Baltic Dry Index is an amalgamation of shipping costs calculated by international shipping brokers. It is seen by many investors and stock traders as an economic barometer, informing their financial decisions by providing information on the strength of demand for global trade. The index provides a sense of the global economy’s pulse, contrasting the amount of cargo space on shipping vessels with the demand for that space. Because new ships are a substantial investment, there are very few built every year, and therefore the amount of cargo space remains relatively static. The BDI contrasts the (mostly unvarying) variable of cargo space with its demand. Throughout history, the BDI has fluctuated significantly. For example, in 2008 the Baltic Dry Index fell over 90%, from its all-time high of over 11,000 to less than 700. Although it has rebounded since then, it hasn’t come close to its pre-2008 numbers. This year, it dipped to a new all-time low, indicating that shipping demand must have dropped considerably from years past.
This seems to correlate with some recent global events. Greece is on fire; the streets are littered with glass and protestors. Vital oceanic routes are under threat of being blocked in some parts of the world. These, along with countless other factors likely contributed to the BDI’s latest drop. A wave of uncertainty regarding the future of shipping and global commerce has swept across the market, and it shows in the BDI. Just as with any dip in an economic barometer, some see doom, and some see a window of opportunity. It is up to the reader to decipher the information, and decide what it really means to them. Regardless of the perspective one might take, keeping an eye on the Baltic Dry Index makes it possible to keep watch over the broader pulse of international trade, and stay informed on what the future may hold.
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Friday, February 24, 2012
Monday, February 13, 2012
U.S. Customs Bond Basics for Importers
What is a U.S. Customs Bond?
Very few importers are aware of why they need a Customs Bond, or what the bond actually does. Simply put, a U.S. Customs Bond is a document that Customs & Border Protection (CBP) require all importers of record to have. If an importer does not have the bond, they will not be able to take their goods from the port of entry. CBP will hold the goods until the importer attains the Customs Bond. The importer will then be subject to the associated fines or penalties for importing without a Customs Bond.
Most Customs Bonds are filed as Import Bonds. This document acts as a financial guaranty between the Insurance/Surety company issuing the Customs Bond, the Importer of Record, and CBP. The Import Bond provides a guarantee to CBP that they will collect import duties, taxes, fines or penalties, if not from the importer then from the insurance/surety company who issued the bond. To explain further, CBP requires all importers to file an Import Bond in order to clear their entries, even if the goods are duty free.
Whether you know it or not; if you are importing, you have a Customs Bond. The size of your bond requirement is dependent on the dollar amount of imports that you are receiving, and the rate at which they are taxed. For example, the smallest and most common Customs Bond is a $50,000 bond. $50,000 is in no way reflective to the price of the bond, rather it refers to a percentage of the amount of duties and taxes associated with receiving the imports. This bond amount will suffice for imports requiring up to $500,000 in duties and taxes, which equals a rough estimation of about 5 million dollars of goods imported. To explain further—let's say on an annual basis you import 1 million dollars worth of goods. Associated with these imports are roughly $100,000 in duties and taxes. The $50,000 importer bond will be sufficient.
It is essential for importers to become familiar with their Customs Bond. This knowledge will prove particularly beneficial in situations where the volume of imports increases or decreases from year to year. An informed importer will be able to determine what size bond they need on file to cover those imports, and they will avoid any penalties or overcharges that they may incur for having a bond that is not of the appropriate size.
Check back later for more U.S Customs Bond Basics for importers. Here, knowledge about your Customs Bond is IMPORTant!
Very few importers are aware of why they need a Customs Bond, or what the bond actually does. Simply put, a U.S. Customs Bond is a document that Customs & Border Protection (CBP) require all importers of record to have. If an importer does not have the bond, they will not be able to take their goods from the port of entry. CBP will hold the goods until the importer attains the Customs Bond. The importer will then be subject to the associated fines or penalties for importing without a Customs Bond.
Most Customs Bonds are filed as Import Bonds. This document acts as a financial guaranty between the Insurance/Surety company issuing the Customs Bond, the Importer of Record, and CBP. The Import Bond provides a guarantee to CBP that they will collect import duties, taxes, fines or penalties, if not from the importer then from the insurance/surety company who issued the bond. To explain further, CBP requires all importers to file an Import Bond in order to clear their entries, even if the goods are duty free.
Whether you know it or not; if you are importing, you have a Customs Bond. The size of your bond requirement is dependent on the dollar amount of imports that you are receiving, and the rate at which they are taxed. For example, the smallest and most common Customs Bond is a $50,000 bond. $50,000 is in no way reflective to the price of the bond, rather it refers to a percentage of the amount of duties and taxes associated with receiving the imports. This bond amount will suffice for imports requiring up to $500,000 in duties and taxes, which equals a rough estimation of about 5 million dollars of goods imported. To explain further—let's say on an annual basis you import 1 million dollars worth of goods. Associated with these imports are roughly $100,000 in duties and taxes. The $50,000 importer bond will be sufficient.
It is essential for importers to become familiar with their Customs Bond. This knowledge will prove particularly beneficial in situations where the volume of imports increases or decreases from year to year. An informed importer will be able to determine what size bond they need on file to cover those imports, and they will avoid any penalties or overcharges that they may incur for having a bond that is not of the appropriate size.
Check back later for more U.S Customs Bond Basics for importers. Here, knowledge about your Customs Bond is IMPORTant!
Monday, February 6, 2012
Our Fun Loving Northeasterly Neighbor, Bridger Bowl
Trade Risk Guaranty is located in beautiful Bozeman, MT. Part of the allure of locating our main office in Bozeman is the exceptional outdoor fun that can be had year-round. One of the best examples of Bozeman’s cornucopia of fun and adventure is Bridger Bowl, a world-class community ski area located only 15 miles Northeast of town.
Skiing in the Montana Rockies is an inimitable experience because of the mountain range’s unique geography. An arid climate, frigid weather, and sizable distance from the coastline combine forces to form Montana’s legendary “cold smoke” snow, as it is known to locals and visitors. This snow is not like other snow, in the sense that it is almost lighter than air and is resistant to clumping up and packing. The result is an unparalleled experience of gliding through a cloud while only tentatively attached to the ground beneath. Most people are helplessly addicted to the Montana Rockies after their first ride through these fabled snowflakes.
Bridger Bowl is a non-profit ski area, which means that money collected by the organization goes straight back into its infrastructure and expansion. The latest territorial addition is accessed by the Schlasman’s lift, which leads to a section of the mountain that had long been off-limits to pass holders. It offers expert terrain, slope angles as extreme as anyone could ask for, and of course, plenty of deep powder. If Bridger’s terrain isn’t enough draw, the family atmosphere is more than enough excuse to get up there. From the ski school classes to the bustling Jim Bridger Lodge and Deer Park Chalet, Bridger Bowl exudes a sense of community uncommon in other mountain resorts.
That is why several of our employees have returned to this mountain year after year, since their childhood. I have personally enjoyed racing down the slopes of Bridger Bowl since I was three years old, and I am not alone in my love for Bridger Bowl here at TRG. On a given powder day, you might see just about any TRG employee spending one of their personal days amongst the glistening trees and snow-capped mountain peaks.
We are lucky to be located where we are, and we don’t take it for granted. Esprit de Corps is one of TRG’s 8 Core Values, and being part of Bozeman and Bridger Bowl’s communities is definitely being part of something special. The spirit of community and adventure are omnipresent here, and we gladly take part every day.
Skiing in the Montana Rockies is an inimitable experience because of the mountain range’s unique geography. An arid climate, frigid weather, and sizable distance from the coastline combine forces to form Montana’s legendary “cold smoke” snow, as it is known to locals and visitors. This snow is not like other snow, in the sense that it is almost lighter than air and is resistant to clumping up and packing. The result is an unparalleled experience of gliding through a cloud while only tentatively attached to the ground beneath. Most people are helplessly addicted to the Montana Rockies after their first ride through these fabled snowflakes.
Bridger Bowl is a non-profit ski area, which means that money collected by the organization goes straight back into its infrastructure and expansion. The latest territorial addition is accessed by the Schlasman’s lift, which leads to a section of the mountain that had long been off-limits to pass holders. It offers expert terrain, slope angles as extreme as anyone could ask for, and of course, plenty of deep powder. If Bridger’s terrain isn’t enough draw, the family atmosphere is more than enough excuse to get up there. From the ski school classes to the bustling Jim Bridger Lodge and Deer Park Chalet, Bridger Bowl exudes a sense of community uncommon in other mountain resorts.
That is why several of our employees have returned to this mountain year after year, since their childhood. I have personally enjoyed racing down the slopes of Bridger Bowl since I was three years old, and I am not alone in my love for Bridger Bowl here at TRG. On a given powder day, you might see just about any TRG employee spending one of their personal days amongst the glistening trees and snow-capped mountain peaks.
We are lucky to be located where we are, and we don’t take it for granted. Esprit de Corps is one of TRG’s 8 Core Values, and being part of Bozeman and Bridger Bowl’s communities is definitely being part of something special. The spirit of community and adventure are omnipresent here, and we gladly take part every day.
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