CBP Suspends AD/CV New Shipper Bonding Option Retroactive to April 1, 2006, Etc. (Canada and Mexico Excluded)
U.S. Customs and Border Protection (CBP) has issued a message and a memorandum concerning a Pension Protection Act of 2006 (Public Law 109-280) provision that temporarily suspends (unless excluded) the option that allows importers to post bond for estimated antidumping (AD) and countervailing (CV) duties until the completion of a new shipper review.
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Instead, importers must submit a cash deposit to cover such estimated AD/CV duties (unless excluded).
(According to the Congressional Research Service, new shipper reviews establish an individual weighted average dumping margin or an individual CV duty rate (as the case may be) for a new exporter/producer that (1) during the period of investigation, did not export the merchandise that is the subject of an AD or CV duty order to the U.S.; and (2) was not affiliated with any exporter or producer who did.)
New Shipper Bonding Option Suspended April 1, 2006 - June 30, 2009 (Canada, Mexico Excluded)
CBP states that P.L. 109-280 suspends the authority of the International Trade Administration to instruct CBP to collect a bond or other security in lieu of a cash deposit during the conduct of a new shipper review, for estimated AD or CV duties, for entries of subject merchandise during the period of April 1, 2006 through June 30, 2009 (see below for details).
Goods of Canada or Mexico are excluded from this suspension pursuant to 19 USC 3438 (Treatment of amendments to AD and CV duty law). As a result, this bonding option continues for new shipper reviews on goods of Canada or Mexico.
ITA to Update AD/CV Module, CBP Working on Retroactive Application
According to CBP, the ITA will update the AD/CV module to reflect this change. In addition, CBP is working to establish procedures for the retroactive application of this law to April 1, 2006.
CBP Instructions on Suspension of New Shipper Bonding Option
CBP has provided the following instructions concerning the suspension of the new shipper bonding option (excluding new shipper reviews involving goods of Canada or Mexico):
For all new shipper reviews, except as indicated above, that ITA conducts during the pendency of this temporary period, CBP shall no longer collect bonds or other security in lieu of a cash deposit of estimated AD and CV duties.
Effective August 17, 2006, for all new shipper reviews, except as otherwise indicated, CBP must collect a cash deposit of estimated AD and CV duties on each entry of subject merchandise entered, or withdrawn from warehouse, for consumption.1
CBP shall collect a cash deposit of estimated AD and CV duties from importers for each entry of merchandise made during the conduct of all new shipper reviews, except as otherwise indicated, entered, or withdrawn from warehouse, for consumption1 on or after April 1, 2006,for which a bond was collected as security.
(P.L. 109-280 also requires, not later than December 31, 2008, that the Secretary of Treasury, in consultation with the Secretary of Commerce, U.S. Trade Representative (USTR), and Secretary of Homeland Security, submit a report to specified Congressional Committees containing, among other things, recommendations on whether the suspension should be extended beyond June 30, 2009.
In addition, within 180 days after the date of enactment, the Secretary of the Treasury, in consultation with the Secretaries of Homeland Security and Commerce, is required to submit a report describing any problems associated with the collection of duties during the 4 most recent fiscal years for which data are available, including any fraudulent activity intended to avoid payment of duties. The report must also included estimates of uncollected duties for the most recent fiscal year for which data are available. In addition, the report must include recommendations on any additional action needed to address such problems, etc.)
(See ITT's Online Archives or 08/14/06, (Ref:06081405), for Part II of BP summary on the Pension Protection Act of 2006, which concerns the suspension of bonding privileges for new shippers. On August 17, 2006, President Bush signed into law P.L. 109-280.)
1 BP is checking to determine if CBP is interpreting this phrase as "time of entry."
CBP Message (dated 08/18/06) available at http://ia.ita.doc.gov/download/customs/SUSPENSION-OF-BONDING-PRIVILEGE-FOR-NEW-SHIPPERS.PDF , alsoavailable at Adm: 06-0983 (dated 08/21/06) at http://www.brokerpower.com/cgi-bin/adminsearch/admmsg.view.pl?article=2006/2006-0983.ADM
CBP Memorandum (dated 08/16/06) available at http://www.cbp.gov/linkhandler/cgov/import/add_cvd/program_guidelines/suspension_new_shipper.ctt/suspension_new_shipper.doc
H.R. 4, as passed by House and Senate available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_bills&docid=f:h4enr.txt.pdf