Details of ITA Proposal to Eliminate Bond Option Prior to AD/CV Orders
The International Trade Administration has issued a proposed rule to modify its antidumping and countervailing duty regulations under 19 CFR Part 351 so that cash deposits would become the normal provisional measure used during the period prior to an AD or CV order’s effective date1. Bonds would no longer be allowed as a provisional measure.
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Comments are due May 26, 2011.
(See ITT’s Online Archives or 04/25/11 news, 11042524, for BP summary announcing the proposed rule was available.)
Cash Deposits Would Better Ensure Importers Pay AD/CV Duties Owed
According to ITA, a key reason for proposing that the provisional measure take the form of a cash deposit is to better ensure that importers bear full responsibility for any AD and CV duties they may ultimately owe.
Collecting Duties Secured by Bonds Can Be Slow, Burdensome for CBP
It adds that while most of the duties on entries secured by a bond during the provisional measures period are ultimately collected, these collections can be very slow and involve burdensome administrative problems for U.S. Customs and Border Protection (CBP).
No Other WTO Members Allow Bond Option During Investigations
ITA also believes that this change to its regulation will bring the U.S. in line with the practices of other World Trade Organization (WTO) Members. According to the agency, it is not aware of any other WTO Member that is currently permitting importers the option of posting bonds during this period of time in an investigation.
ITA Notices Currently Allow Either Cash Deposits or Bonds Prior to Order
The ITA currently states in its AD and CV notices (and CBP states in its messages), that either the posting of a bond or payment of a cash deposit is allowed until the order is in effect. (Once the order is in effect, only cash deposits are allowed.)
(If the posting of a bond is chosen, CBP may currently accept either a single-entry or a continuous-entry bond for an estimated AD or CV duty rate that is less than 5% ad valorem. If the rate is over 5%, a single-entry bond is required.)
Regs Would be Amended to Say Cash Deposits Would be Normal Procedure
The proposed rule would delete the sentence under current 19 CFR 351.205(a) which states that this type of provisional remedy in AD and CV investigations usually takes the form of a bonding requirement. It would instead add a sentence to paragraph (d) (on the effect of a preliminary determination) which states that the Secretary would normally order the posting of cash deposits during this provisional period to ensure payment if AD/CV duties are ultimately imposed.
(Note that elsewhere, ITA’s regulations state that provisional measures may only be in force for a four-month period (120 days), which can be extended up to six months (180 days) for AD cases.
Also note that cash deposits are often referred to as estimated cash deposits, as they are made prior to assessment and liquidation.)
1The effective date of the AD or CV order is generally the date that the International Trade Commission’s final affirmative injury determination is published in the Federal Register.
| Thomas Futtner (202) 482-3814 |
| Mark Ross (202) 482-4794 |
| Joanna Theiss (202) 482-5052 |
(FR Pub 04/26/11, D/N 110420253-1253-01)
ITA information on boilerplate email instructions to CBP, dated 08/18/08, available here.