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AD/CV Duty Evasion Claims Must be Filed Online as of Dec. 15

Wednesday, December 07, 2016
Sandler, Travis & Rosenberg Trade Report

U.S. Customs and Border Protection has announced that as of Dec. 1 claims of evasion of antidumping or countervailing duties may be submitted via CBP’s revised e-Allegations web portal. In addition, such claims must be filed via this portal starting Dec. 15. Individuals and small businesses that need technical assistance submitting these allegations should contact CBP via email.

CBP states that the new portal is designed to make it easier and more efficient for members of the trade community and federal government agencies to submit AD/CV duty evasion allegations under the Enforce and Protect Act, which is part of the Trade Facilitation and Trade Enforcement Act enacted earlier this year. Evasion refers to entering goods into the U.S. customs territory for consumption by an act or omission that is material and false and results in AD or CV duties being reduced or not applied to or collected on such goods. Examples of evasion include misrepresentation of the goods’ true country of origin (e.g., through fraudulent country of origin markings on the product itself or false sales), false or incorrect shipping and entry documentation, and misreporting of the goods’ physical characteristics.

The EAPA created a new framework for CBP to investigate AD/CV duty evasion allegations and in August CBP issued an interim rule setting out the formal process it will use to act on this authority. The rule allows any interested party, including competing importers and federal agencies, to submit allegations and sets a fairly low bar for CBP to launch an investigation. CBP has broad authority to conduct these investigations and can impose initial remedial measures that could interrupt a supply chain in as little as 90 days. Any final determination of evasion may be met with not only AD/CV duties but also other enforcement measures such as civil or criminal investigations.

Comments on CBP’s interim rule are being accepted through Dec. 20.

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