As a seasoned freight salesman of almost 20 years, clients are often surprised when I discuss preventative supply chain solutions for regulatory compliance (and not just for international transportation).
With the launch of their new single portal, the Automated Commercial Environment (ACE), U.S. Customs and Border Protection (CBP) has begun to seriously re-enforce and protect domestic industry from trade infringements such as anti-dumping and countervailing (AD/CVD).
There should be no surprise! From buyer education, to pre-purchasing scope determination, importers can and should proactively avoid, or take advantage of, industry impacting regulations.
The first step is understanding anti-dumping and countervailing scope:
What is anti-dumping?
Dumping occurs when foreign manufacturers sell goods in the United States less than fair value, causing injury to the U.S. industry. AD cases are company specific; their duties are calculated to bridge the gap back to a fair market value.
What are countervailing duties?
CVD cases are established when a foreign government provides assistance and subsidies, such as tax breaks to manufacturers that export goods to the U.S., enabling the manufacturers to sale the goods cheaper than domestic manufacturers. CVD cases are country specific, and the duties are calculated to duplicate the value of the subsidy.
RESEARCH PROACTIVELY
How can I determine whether merchandise that I am planning to import is subject to antidumping or countervailing duties?
Review the scope of antidumping and countervailing duty (AD/CVD) orders to determine whether the merchandise falls under any relevant posted orders.. This can be done through your Customs broker, by reviewing Federal Register notices, CBP’s ACE portal, or government trade resources such as https://addcvd.cbp.gov and www.trade.gov/ia.
How can I find a full, comprehensive list of products covered by AD/CVD orders?
In three convenient places:
- ACE contains comprehensive case information on every AD/CVD case.
- The U.S. International Trade Commission (ITC) publishes a list of every AD/CVD case.
- The website of Commerce’s International Trade Administration, www.trade.gov/ia,under scope information, also contains information on AD/CVD cases listed by country.
DID YOU KNOW
The AD/CVD paid at the time of entry are cash deposits of estimated AD/CVD duties only. The final amount of duties owed is not determined until Commerce conducts an administrative review to establish the final AD/CVD rates on past entries.
The final AD/CVD amount may increase, decrease, or stay the same from the AD/CVD cash deposit paid at the time of entry. After Commerce sends instructions to CBP on the final AD/CVD rate for the entry, CBP will assess this final duty.
CBP will issue a bill for any increase in duty, and refund any decrease of duty. On average, this entire process, from the date of importation, takes approximately three years.
GET YOUR MONEY BACK
I do not believe that the goods that I imported fall under the scope of an AD/CVD order, and CBP required me to pay AD/CVD duties on my imported goods. How can I obtain a ruling that my products are not subject to AD/CVD?
You may apply to Commerce for a scope ruling (know that these a publicly published to the entire trade community). Further, if you believe CBP misapplied the scope of the order as written, you may file a protest with CBP within 180 days after the entry has liquidated. Your Customs broker can assist with filing and ensuring you receive the maximum refund.
I paid a fair price to my supplier for my imported merchandise, and the estimated AD/CVD duties that I paid are too high. How can I get a refund of the duties when CBP liquidates the entry?
You may request an administrative review of your imports from Commerce to determine the final AD/CVD duty liability. Commerce instructs CBP on the final AD/CVD rates, and CBP will assess final duties based on these instructions.
I imported my merchandise using a consumption entry, paid the AD/CVD duties, and I now want to export the goods. Can I get a refund of my AD/CVD duties?
For refunds of AD/CVD duties, the statute and regulations clearly prohibit “any remission, abatement refund or drawback of duties” (see 19 U.S.C. 1558, & 19 CFR 191.3(b)(3). An importer should file the correct entry type appropriate for a case such as this. Once the merchandise has been released from CBP custody, the importer is not entitled to a refund of AD/CVD duties.
As your Customs broker, it is our responsibility to fully understand your products and goals. Consultative brokerage can establish preventative methods and avoid costly purchasing mishaps.
You take great pride in sourcing your inventory and providing quality products to your customers, let Green Worldwide bring consultative due diligence to the bigger picture.
AUTHOR
Business Development Manager
Green Worldwide Shipping, LLC
Mobile: +1 310 977 4543
