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CBP’s First AD/CV Enforcement Update Highlights Collections, Audits, Litigation

Thursday, December 18, 2014
Sandler, Travis & Rosenberg Trade Report

U.S. Customs and Border Protection recently issued its first “AD/CVD Update” reviewing enforcement, entry processing, litigation and other developments in antidumping and countervailing duty matters in fiscal year 2014. Highlights of this update include the following.

Audits. CBP conducted 78 audits of importers of AD/CV commodities, identifying AD/CV discrepancies with a value of $14.5 million plus $10.1 million in disclosures, penalties and interest, of which $8.5 million was collected. Commodities involved in the audits included aluminum extrusions, bearings, candles, nails, lock washers, pencils, plastic bags, ribbons, shrimp, solar cells, steel pipe, tires, tissue paper, uncovered innerspring mattress units, wooden bedroom furniture and wood flooring.

Litigation. A combined total of about $3.5 million in penalties and AD duties is being sought for collection by the Department of Justice on CBP’s behalf of in four court cases involving steel butt-weld pipe fittings, wire hangers, and polyethylene retail carrier bags from China.

In three cases filed with the Court of International Trade in September and November involving imports of garlic from China and magnesia carbon brick allegedly from Vietnam, importers are beginning to challenge CBP’s requests for single transaction bonds as additional security to protect the revenue when it has reasonable suspicions that imports may be subject to additional AD or CV duties.

Targeting. The targeting of imports of stainless steel sinks from China by CBP’s AD/CV National Targeting and Analysis Group in Miami led to $3.5 million in evaded AD and CV duties identified in CBP entry summary reviews.

Cash deposits. CBP collected $508.5 million in AD/CV cash deposits, up 12 percent from FY 2013.

Entry Processing. CBP processed 279,890 new AD/CV imports; administered 1,532 AD/CV instruction messages from the International Trade Administration, including 922 liquidation instructions to assess final AD/CV duties; and assessed final duties on 142,481 AD/CV entries.

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