AD/CVD RED Team Activities COAC Trade Facilitation Subcommittee October 4, 2011

 CBP has created a Re-Engineering Dumping “RED” Team composed of members of many different offices within CBP  This group is charged with developing an operational protocol to frame the import process for entries subject to AD/CVD from foreign place of manufacture through export from foreign and summary processes and then identify where and what are the threats, challenges, and vulnerabilities in each step of the process.  They are looking with special interest at transshipment, undercollections, the role of shell companies, and other gaps/vulnerabilities/challenges. Re-Engineering Dumping (RED) 2

Major RED Team Activities Create Single Transaction Bond scenarios which will guide CBP ports on when to require importers to submit single transaction bonds if CBP suspects that ADCVD evasion is taking place Identify the major steps in the import process, the Department of Commerce ADCVD process and the areas where CBP currently has vulnerabilities and where CBP is taking enforcement action Develop programs that will strengthen the ADCVD administration, enforcement and collections process Emphasis to Brokers their responsibility in requiring power of attorney to ensure legitimacy of importers Explore the use of sharing CBP enforcement data with Commerce as part of their Administrative Protective Order record so that interested parties/petitioners are provided feedback more timely Developing webinars on how to comply with various orders. This is anticipated to be available to both an internal as well as an external audience Develop a 5 Year AD/CVD Strategy

4 AD/CVD RED Team Projects Key ConsiderationsKey Challenges Create Single Transaction Bond scenarios Guide CBP ports on when to require importers to submit single transaction bonds Used when CBP suspects that ADCVD evasion is taking place Allows CBP enforcement to be uniform Reduces costs to legitimate trade Identifying ADCVD evasion Developing scenarios that are comprehensive Seeking the right financial coverage to protect the revenue Map the AD/CVD process Identify the major steps in the import process Map the Department of Commerce ADCVD process Identify areas where CBP currently has vulnerabilities Identify where CBP is taking enforcement action Leverages existing relationship with Department of Commerce Capturing the process flow from product order through final bill collection Identifying all the known vulnerabilities in one document Seeking creative ways to utilize the resources that CBP has to address import risks

5 AD/CVD RED Team Projects Key ConsiderationsKey Challenges Develop programs that will strengthen the ADCVD administration, enforcement and collections process Seek program changes to each of the segments of the AD/CVD process Account for current resources and authorities Develop programs that fit specific needs Segmenting the AD/CVD process into component pieces Creating programs that can be implemented using current authorities Fitting workload increases into operational priorities Emphasis to Brokers their responsibility in requiring power of attorney to ensure legitimacy of importers Brokers are a major constituent in AD/CVD administration They act as a force multiplier for AD/CVD enforcement Can help to reduce surety risk Providing uniform guidance Being able to authenticate documents provided by importers Determining risk and providing financial liability for adequate bond coverage

6 AD/CVD RED Team Projects Key ConsiderationsKey Challenges Sharing CBP enforcement data with the Department of Commerce Seeking ways for CBP to use the already established Administrative Protective Order record Interested parties/petitioners would be provided feedback more timely No need for CBP to create an APO process since one already exists, helping to eliminate government duplication Finding ways to share the most available data and information with the Department of Commerce Ensuring the security and confidentiality of the information that would be provided Finding ways to protect potential criminal investigations from being jeopardized Develop Informed Compliance webinars Expert advise on how to comply with various orders Anticipated to be available to both an internal CBP as well as an external audience Increase knowledge and compliance with complex AD/CVD orders Developed jointly by the Department of Commerce and CBP Seeking AD/CVD cases that have the most complexity Providing public information that could be used to help raise compliance Getting a wide audience Providing uniform guidance