Your customs broker is the operational lynchpin of your Port Newark clearance process. They file your ISF, submit your entry, pay your duties to CBP, and coordinate your container release. Their ability to perform each of these functions on time depends on one thing: your ability to fund them before CBP deadlines.
Customs broker liquidity failure — the inability to pay duties, fees, or bond premiums on the schedule CBP requires — is the most preventable source of demurrage accumulation at Port Newark.
The Customs Broker Payment Architecture
Step 1 — Bond premium payment: Before any formal entry can be filed, an active CBP bond must be in place. Continuous bond premiums are typically billed annually by the surety. Lapsed bonds prevent all entry filing.
Step 2 — Entry filing fees: Your broker charges a per-entry fee (typically $85–$200 for standard formal entries) plus line fees for each HTS classification, ISF filing fees, and ABI transmission fees.
Step 3 — Duty payment (the big one): After entry is accepted by CBP, duties, taxes, and MPF are due within 10 business days. Your broker typically requires funds in their trust account within 5–7 days of entry acceptance.
Step 4 — Container release: CBP issues release notification only after duty payment is confirmed. If your duty payment is delayed by even one day, your container sits — accruing demurrage.
Duty Cost Modeling for Port Newark Importers
| Product Category | Base Duty | Section 301 (China) | Total Duty Rate | Duty on $1M FOB |
|---|---|---|---|---|
| Consumer electronics | 0–3.9% | 7.5–25% | 7.5–28.9% | $75K–$289K |
| Apparel (man-made fiber) | 14–32% | 7.5–25% | 21.5–57% | $215K–$570K |
| Furniture/home goods | 0–5.3% | 25% (most) | 25–30.3% | $250K–$303K |
| Industrial machinery | 0–4.4% | 0–25% | 0–29.4% | $0–$294K |
| Plastic consumer goods | 3.4–6.5% | 7.5–25% | 10.9–31.5% | $109K–$315K |
Critical observation: For most product categories, duty liability represents 15–35% of FOB value. On a $1M PO, that is $150,000–$350,000 in cash that must be in your customs broker's trust account within 5–7 days of container arrival. This is the single largest pre-revenue cash event in most import cycles.
How Sentinel Funds the Customs Stack
Sentinel's PO financing facility can be structured to include a customs liquidity tranche — capital earmarked for duty payment, broker fees, and bond premiums as part of the overall PO advance. This tranche is pre-positioned before the vessel arrives.
Standard customs tranche structure:
- Duty reserve: 100% of estimated duty liability (broker-estimated at entry filing)
- Broker fee reserve: Flat amount based on entry count (typically $500–$2,000 per shipment)
- Bond reserve: Pro-rata monthly continuous bond premium
Sentinel Customs Liquidity Flow: Pre-arrival (T-7 days): Sentinel disburses customs tranche to broker trust account. T-0 (vessel arrival): ISF confirmed. Entry filed. Duty payment available. T+1 (CBP release): Duties paid. Container released. Zero demurrage from payment delay. T+3 (Carteret 3PL): Container drayed to Exit 12 warehouse.
Interactive: PO Stepper — Customs Cost Calculator
Lateral Relevancy
Customs broker liquidity is one of five key compliance areas NJ importers must pre-fund.
Ready to pre-fund your customs stack? Initialize your Funding Analysis or call (888) 653-0124.
DISCLAIMER: Sentinel Trade Finance | Carteret, NJ 07008 | (888) 653-0124 | Duty rates are subject to change. Verify current tariff classifications and rates with a licensed customs broker. Not legal or customs advisory. Financing subject to underwriting and approval.