Import Quotas Should Raise Liability Concerns for Brokers, Surety Says
New absolute quotas on imported steel and aluminum should concern customs brokers due to added liability issues, said International Bond & Marine, a surety that underwrites customs bonds, in a post on its website. "The burden of complying with quota windows often falls squarely on the shoulders of the broker," it said. "Today it’s aluminum and steel, tomorrow it may be different commodities." If a broker misses a quota and the U.S. prevents entry, "clients may pursue legal action against the broker," the company said. Such an error "could make the broker liable for other consequential losses such as shipping costs, storage charges, and loss of market," it said.
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Brokers need protections from "from the potential of missing import quotas and facing potentially large legal suits as a result," it said. " All it takes is a shift in international relations or even an inter-office error to miss a quota window." The company advised purchasing an errors & omissions insurance policy as the "first step in protecting a broker’s interests."