Anti-dumping & Countervailing duty
Due to all of the new anti-dumping orders coming out from Department of Commerce, we recommend importers and shippers to reserach in advance prior to sending products into the U.S. specially if it is from China origin. If your product is deemed subject to Anti-dumping duty and/or Countervailing duty, you will need to post a collateral against your customs bond and you will have to pay a higher duty depending on the scope order. It is very important that you also seek an advice from legal experts prior to importing. You can call or email us and we can provide some recommendations.
Under Section 484 of the Tariff Act, as amended (19U.S.C. § 1484):
“The importer of record is responsible for using reasonable care to enter,
classify and determine the value of imported merchandise and to provide any other
information necessary to enable CBP to properly assess duties, collect accurate
statistics, and determine whether other applicable legal requirements, if any, have been
met. CBP is then responsible for fixing the final classification and value of the
merchandise. An importer of record’s failure to exercise reasonable care could delay
release of the merchandise and, in some cases, could result in the imposition of
penalties or, in certain instances, referral for criminal enforcement.”
Guide to knowing if your shipment is subject to anti-dumping & countervailing duty.
How can I determine whether merchandise that I am planning to import is subject to antidumping or countervailing duties?
Federal Register notices from Commerce, available at
Written instructions from Commerce to CBP, available in CBP’s Automated Commercial Environment (ACE) (for importers and customs brokers with ACE accounts), and on the internet via the AD/CVD Search at https://aceservices.cbp.dhs.gov/adcvdweb
On Commerce’s International Trade Administration’s website at, http://web.ita.doc.gov/ia/CaseM.nsf/136bb350f9b3efba852570d9004ce782
Interested parties may request a scope ruling from Commerce. Details on how to determine if you are an interested party within the definition of the governing regulations and on how to request a scope ruling are available at https://enforcement.trade.gov/scope/Request-Scope-Ruling.pdf
You may contact an Import Specialist at the appropriate Center of Excellence and Expertise at https://www.cbp.gov/trade/centers-excellence-and-expertise-information although that advice is not binding. Commerce is the agency that issues final rulings regarding what merchandise is subject to an AD/CVD order.
To view all AD/CVD cases by description and case number, visit https://legacy.trade.gov/enforcement/
CHRONOLOGY OF EVENTS
The overall investigation process for antidumping and countervailing duty cases can be divided into five stages, each ending with a determination by either Commerce or the Commission: (1) initiation of the investigation by Commerce, (2) the preliminary phase of the Commission’s investigation, (3) the preliminary phase of Commerce’s investigation, (4) the final phase of Commerce’s investigation, and (5) the final phase of the Commission’s investigation. There is a partial overlap in some of these stages as explained below. With the exception of Commerce’s preliminary determination (stage 3), a negative determination by either Commerce or the Commission results in a termination of proceedings at both agencies.
The statutory deadlines relating to the five stages are as follows:
– Initiation (20 days after the filing of the petition),1
– Preliminary determination by the Commission (45 days after the filing of the petition),2
– Preliminary determination by Commerce (115 days after the Commission’s preliminary determination in antidumping cases or 40 days in countervailing duty cases),3
– Final determination by Commerce (75 days after Commerce’s preliminary determination),4 and
– Final determination by the Commission (120 days after Commerce’s preliminary determination or 45 days after its final determination,5 whichever is later).6 7
“Dumping margin” refers to the amount by which the normal value exceeds the export price or constructed export price of the subject merchandise. “Weighted average dumping margin” refers to the percentage determined by dividing the aggregate dumping margins determined for a specific exporter or producer by the aggregate export prices and constructed export prices of such exporter or producer.
Section 771(35) of the Act (19 U.S.C. § 1677(35)).
HTSUS 9801.00.10 Goods Subject to ADD/CVD Upon Re-Importation
HTSUS 9801.00.10, which provides for the duty free entry of goods returned to the United States within three years after having been exported, was modified under TFTEA to include goods of foreign origin. Whereas the documentation requirements for this provision are set forth in HQ H276787, unanswered was the question whether anti-dumping or countervailing duties would apply to returned foreign goods which were previously subject to an ADD or CVD order. The answer lies in H033175 wherein CBP determined that unless the Department of Commerce specifically excludes returned goods from the scope of the order, ADD/CVD duties must be collected upon re-importation.
NOTE: This information is current as of the date of this document, and is not, nor is it intended to be, legal advice. No amendment has been made to reflect changes in law, regulation, or policy that may have occurred since that date. You should not rely on this newsletter to decide on a legal course of action. If you would like legal advice, you need to ask your attorney.
Do you have a new commodity that needs special attention or is “information requested”? Please complete our information request form and we will contact you to discuss this in greater detail. Click here to contact us.
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