U.S. Customs and Border Protection has made available a new tool allowing users to track the volume, types, and geographic locations of antidumping and countervailing duty evasion allegations under Enforce and Protect Act.
CBP’s EAPA regulations allow any interested party, including competing importers and federal government agencies, to 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 investigate these claims and can impose initial remedial measures that can 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.
The dashboard indicates that since EAPA was implemented in 2016 China has been the presumed country of origin in 178 of 228 cases, followed by Korea with 17 and Germany with 16. Transshipment has been the primary evasion scheme in 207 cases, followed by misclassification with 11, failure to pay AD/CV duties with 7, and use of the wrong AD/CV duty rate with 3. Malaysia has been identified as the country of transshipment in 65 cases, followed by Mexico with 29 and Cambodia with 18.
For more information on AD/CV duty evasion, please contact attorney Kristen Smith at (202) 730-4965 or via email.
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