CBP Proposes to Eliminate "High Value" Continuous Bond Applied to Shrimp
U.S. Customs and Border Protection has issued a notice proposing to eliminate the enhanced "high value" continuous bond applied to certain shrimp imports1 in response to a recent World Trade Organization ruling which found CBP's application of this type of bond to shrimp from Thailand and India inconsistent with U.S. WTO obligations.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
(See ITT's Online Archives or 07/18/08 and 12/30/08 news, 08071820 and 08123020, for BP summaries of the WTO Appellate Body report ruling against the U.S., and the U.S.' agreement to implement the ruling by April 1, 2009, respectively.)
Comments are due by February 11, 2009.
Shrimp Would no Longer Be a Special Category Subject to "High Value" Bond
CBP proposes to comply with the WTO ruling by ending the designation of shrimp covered by antidumping (AD) or countervailing (CV) duty orders as a "special category" or "covered case" subject to the requirement of additional bond amounts.
Shrimp Importers Could Request Termination of Old Bond, Request New Bond
Furthermore, shrimp importers would be able to request termination of existing continuous bonds pursuant to 19 CFR 113.27(a) and submit a new continuous bond application pursuant to 19 CFR 113.12(b).
The requirements for submitting a new bond application pursuant to 19 CFR 113.12 are available on the CBP Web site at http://www.cbp.gov/xp/cgov/trade/priority_trade/revenue/bonds/pilot_program/news_develop/ under the ''Policy and Procedures'' section.
If Finalized, Modifications Would be Effective for Entries on/after Publication Date
After public comments are received, reviewed, and considered, CBP will publish in the Customs Bulletin and in the Federal Register a final notice regarding the designation of shrimp covered by AD or CV duty orders as a special category or covered case subject to the requirement of additional bond amounts.
CBP states that any change to the designation of this merchandise and the bond amounts required of importers of this merchandise will be effective for entries made on or after the date of publication of the final notice.
1CBP states that it required continuous bond amounts for importers of shrimp subject to certain AD or CV duty orders to be increased to the rate established in the final AD or CV duty order, multiplied by the value of the importer's entries of the subject merchandise in the previous 12-month period.
- comments due February 11, 2009
CBP contact - David Genovese (202) 863-6092
CBP notice (D/N USCBP-2008-0112, FR Pub 01/12/09) available at http://edocket.access.gpo.gov/2009/pdf/E9-343.pdf
WTO summaries of the disputes, "U.S.-Customs Bond Directive for Merchandise Subject to Antidumping/Countervailing Duties" (DS345) and "U.S.-Measures Relating to Shrimp from Thailand" (DS343) available at http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds345_e.htm and http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds343_e.htm