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Practice Areas

Import Measures Imposed on Pencils Alleged to Evade AD Duties

Tuesday, July 03, 2018
Sandler, Travis & Rosenberg Trade Report

U.S. Customs and Border Protection has determined that there is a reasonable suspicion that an importer is evading the antidumping duty order on cased pencils from China by transshipping cased pencils manufactured in China through the Philippines. As a result, CBP is imposing the following interim measures.

- rate adjusting all unliquidated entries of subject goods entered as not subject to AD duties and requiring AD cash deposits

- requiring live entry for all future imports of products believed to be cased pencils by the importer at issue

- rejecting any entry summaries and requiring a refile for those that are within the entry summary reject period as type 03 with appropriate AD cash deposits

- suspending liquidation of any entry entered on or after March 27, 2018, and extending the liquidation period for all unliquidated entries entered before that date

- evaluating the importer’s continuous bonds and requiring single transaction bonds as appropriate

The Enforce and Protect Act, part of the Trade Facilitation and Trade Enforcement Act, gave CBP a significantly expanded role in investigating AD/CV duty evasion and the authorities to match. Under CBP regulations implementing the EAPA any interested party, including competing importers and federal government agencies, may submit allegations that AD/CV duties are being evaded; e.g., by misrepresenting the goods’ true country of origin, submitting false or incorrect shipping and entry documentation, or misreporting the goods’ physical characteristics.

CBP has broad authority to conduct investigations of these claims 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.

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