Welcome to Weise Wednesday! Twice a month we will share a brief Q&A with the former U.S. Commissioner of Customs, Mr. George Weise. If you have questions, we encourage you to send them to This email address is being protected from spambots. You need JavaScript enabled to view it..

 

Q: What is CBP doing to enforce antidumping and countervailing duty orders?

A: Antidumping and countervailing duty orders are a particularly challenging area for CBP. The organization has received criticism in the past from domestic industries and the Hill due to alleged widespread circumvention of such orders.

It has been designated a “Priority Trade Issue” (PTI) by CBP and given increased focus in recent months. CBP’s stated goal for this PTI is to “detect and deter circumvention of the AD/CVD law, to liquidate final duties timely and accurately, while at the same time facilitating legitimate trade.”

Congress recently passed the Enforce and Protect Act of 2015 (EAPA) as part of the Trade Facilitation and Enforcement Act of 2015, providing new tools for CBP to address this problem.  EAPA’s key provisions accomplish the following:

    • Establish formal procedures for companies to submit, and CBP to investigate, antidumping or countervailing allegations of evasion against U.S. importers
    • Direct CBP to track and report evasion allegations from initial receipt through final disposition
    • Create the Trade Remedy Enforcement Division in CBP
    • Authorize the use of bonds to protect the collection of AD/CVD duties

Since EAPA’s enactment, an Executive Order – “Establishing Enhanced Collection and Enforcement of AD/CVD Duties and Violations of Trade/Customs Laws” – has been issued by the White House. CBP has also created a Trade Enforcement Task Force to work with other agencies to combat illicit traders.

Clearly, CBP is devoting significant resources to improving its performance in the AD/CVD enforcement area. Time will tell how effective their efforts will be. In light of this enhanced focus by CBP, importers must be sure to scrutinize all of their transactions that could be subject to AD/CVD orders to ensure they are compliant.