Final Rule Issued That Cash Deposits Will Be Normally Required After AD/CVD Preliminary Determinations

December 20, 2011

On October 3, 2011, the U.S. Department of Commerce issued a notice in the Federal Register to the effect that it is modifying its regulations with regard to the posting of bonds in antidumping (AD) and countervailing duty (CVD) investigations. In AD/CVD investigations, the point at which bonds or cash deposits are required is triggered when an affirmative preliminary determination is issued by Commerce. To strengthen the enforcement of AD/CVD regulations, Commerce has now amended its practice to require that “normally,” the deposit of AD/CV duties will take the form of a cash deposit instead of a bond. The purpose, according to the notice of this change, is to “strengthen the administration of the nation’s AD and CVD laws by making importers directly responsible for AD and CVD duties.” The notice also states that this change will help to ensure that the U.S. Government collects the full amount of duties owed should an investigation eventually result in an antidumping or countervailing duty order.

The authority for this is change based in 19 C.F.R. § 351.205(a), which allows Commerce to provide a remedy for deposit of duties in the event that an affirmative AD or CVD determination has been made.  These are sometimes referred to as the “provisional measures.”

This notice clearly reflects the growing trend of Commerce as well as the U.S. Customs and Border Protection to be more vigorous in its enforcement of the AD and CVD laws and regulations.

If you have any questions about this or other customs issues, please contact Steve Spraitzar at steve.spraitzar@tuttlelaw.com or at (415) 288‑0427.

Stephen S. Spraitzar is an attorney with the Law Offices of George R. Tuttle in San Francisco.

 

The information in this article is general in nature, and is not intended to constitute legal advice or to create an attorney-client relationship with respect to any event or occurrence, and may not be considered as such.

Copyright © 2011 by Tuttle Law Offices. 

All rights reserved.  Information has been obtained from sources believed to be reliable.  However, because of the possibility of human or mechanical error by our offices or by others, we do not guarantee the accuracy, adequacy, or completeness of any information and are not responsible for any errors, omissions, or for the results obtained from the use of such information.

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