The Treasury Department published its fall 2016 regulatory agenda for CBP (here), which mentions new rulemakings that implement part of the customs reauthorization. The agenda includes first mentions of an increase to the de minimis value (here) and antidumping and countervailing duty evasion investigation procedures (here). While interim final rules on both were issued earlier this year, CBP sought public comments on each, so further changes may be included when the regulations are finalized. CBP is aiming to finish the AD/CV duty evasion rulemaking (see 1608190014) by March, and the de minimis rulemaking (see 1608250029) by April, it said.
CBP issued the following releases on commercial trade and related matters:
The Commerce Department is currently drafting new regulations to create a process for issuing scope rulings quickly when requested by CBP during Enforce and Protect Act (EAPA) investigations of antidumping and countervailing evasion, a Commerce Department official said. The recent customs reauthorization law’s EAPA provisions include a section that allows CBP to refer to Commerce if it is unsure whether a product named in an evasion complaint is covered by the scope of duties. Commerce intends “to create a process that allows us to address a CBP referral promptly and preserves the flexibility to gather information and input from parties for [Commerce’s] consideration,” the official said. The regulatory changes will “address differences between the EAPA requirements and Commerce's current processes for scope inquiries,” an industry executive has said (see 1610140044).
Sen. Rob Portman, R-Ohio, is “extremely disappointed” in CBP’s decision not to pursue an investigation in response to an allegation filed by Wheatland Tube of antidumping or countervailing duty evasion on steel pipe from China, a spokesperson from Portman’s office said in an Oct. 25 email. A congressional staffer said Portman is “in touch” with Wheatland, which last week said it intended to follow up with Portman and Senate Finance Ranking Member Ron Wyden, D-Ore., regarding CBP’s “lack of proper implementation of the act” (see 1610190029). Those senators were substantially involved in pushing the inclusion of Enforce and Protect Act provisions creating a new CBP AD/CV duty evasion process within the recently enacted customs reauthorization law. “Petitioners should not have to produce a smoking gun before CBP will investigate claims of duty evasion,” Portman’s spokesperson said. “The Senator is committed to continuing to work ... with CBP to ensure the ENFORCE Act is implemented and followed correctly." CBP and Wyden’s office didn’t comment.
The National Association of Manufacturers took issue with several areas in CBP's interim rule for antidumping and countervailing duty evasion allegations (see 1608190014), the trade group said in comments to CBP (here). The association "believes that many aspects of the interim rules need to be strengthened to meet the legislative requirements and effectively ensure transparent, full and fair enforcement of U.S. trade-remedy laws," it said. Among other issues, NAM voiced concerns over the lack of administrative protective orders (APOs), something that others have mentioned to CBP as worrisome (see 1610140044).
CBP 's interim regulations for investigating allegations of antidumping or countervailing duty evasion diminish the effect of the new law by limiting what information is released publicly, the Southern Shrimp Alliance said in comments to CBP (here). "The results of CBP’s investigations will provide invaluable assistance to the trade community in recognizing and avoiding evasion schemes and will improve the informed compliance of importers and other supply chain participants," it said. "But these benefits will only be enjoyed if CBP issues public notices of its actions." The agency has received and responded to at least one allegation since the interim rules went into effect (see 1610190029).
CBP will extend the comment period on its new rules for investigating allegations of antidumping or countervailing duty evasion to Dec. 20, it said in a notice (here). CBP requested comments on its interim final rules, which went into effect Aug. 22, earlier this year (see 1608190014). The interim rules implement the AD/CV duty evasion language from the customs reauthorization law's Enforce and Protect Act (see 1608190014). CBP already received at least one comment on the new processes (see 1610170012).
CBP declined to investigate further an allegation of antidumping or countervailing duty evasion on steel pipe from China, the agency told Wheatland Tube, the Pennsylvania steel tube company that filed the allegation last month (see 1609150028). While Wheatland’s allegation reasonably suggested that an undisclosed company "imported merchandise from China that may be subject to AD/CVD order," the allegation didn't "reasonably suggest that merchandise was entered through evasion," the agency told the company, according to a Wheatland news release. "Evidence of importation, without more, is not sufficient to raise a reasonable suspicion of evasion," CBP said to Wheatland.
The subject of an antidumping or countervailing duty evasion investigation under CBP's new regulations deserves notification before the agency takes "interim measures," the American Institute for International Steel said in comments to CBP (here). CBP requested comments on its procedures when it issued an interim final rule implementing AD/CV duty evasion language from the customs reauthorization law's Enforce and Protect Act (EAPA) (see 1608190014). The lack of early transparency in the process also threatens supply chains and broad categories of importers, the AIIS said.
SAN DIEGO -- Early feedback from Capitol Hill and stakeholders on CBP's recently issued regulations for new antidumping and countervailing duty evasion processes (see 1608190014) was largely focused on the lack of administrative protective orders (APOs) within such allegation proceedings, said Troy Riley, executive director-Commercial Targeting and Enforcement at CBP. Riley, who spoke on a panel at the Western Cargo Conference on Oct. 14, said it's too early since the processes were put in place for CBP to really know what issues seem to cause problems, he said. Comments are due Oct. 21.