1. ANTI-DUMPING AND COUNTERVAILING DUTY
U.S. Customs and Border Protection

2. Anti-dumping and Countervailing Defined
Occurs when a foreign producer sells a product in the United States at a price that is below that producer’s sales price in its home market, or at a price that is lower than its cost of production. The foreign producer is selling the merchandise at less than fair value.
Countervailing
Occurs when a foreign government provides financial assistance to benefit the production, manufacture, or exportation of a good. The foreign government is subsidizing the foreign producer.
ADD: Company Specific
CVD: Country Specific and Industry Wide in Scope
U.S. Customs and Border Protection

3. What is AD/CVD?
Additional duties assessed by CBP on imported merchandise subject to either an anti-dumping duty (ADD) or countervailing duty (CVD) order.
These additional duties are designed to offset the competitive advantages that some foreign companies may gain by dumping goods, or advantages derived from foreign government subsidies.
AD/CV duties equal the amount the DOC has determined to be the difference between the sale price to the U.S. and the foreign market value of such or similar merchandise at the time the merchandise was sold or exported to the United States.
ADD: Requires positive determination of injury
CVD: Requires positive determination of subsidy (may or may not require a determination of injury)
U.S. Customs and Border Protection

4. Why AD/CVD Is Important
U.S. jobs may be lost
Domestic industries may be harmed
Our nation’s economy is threatened
U.S. Customs and Border Protection

5. Parties Involved with AD/CVD
The Department of Commerce (DOC)
International Trade Administration (ITA)
The International Trade Commission (ITC)
U.S. Customs and Border Protection

6. The Department of Commerce
The DOC is responsible for:
Investigating to determine if sales at less than market value are being made;
Determining rates for AD/CVD duties;
Defining the scope of the order;
Creating cases;
Issuing and updating messages and
Clarifying messages
Investigates foreign companies
U.S. Customs and Border Protection

7. The International Trade Commission
The ITC conducts investigations in concert with the DOC to determine whether the domestic industry has been injured in AD/CVD cases.
Focus is on domestic industry
U.S. Customs and Border Protection

8. Stages in the AD/CVD Process
1) Investigation initiated
2) Preliminary injury determination issued by
ITC
If no
If yes
3) Final determination issued by DOC
If no
If yes
4) Final injury determination by ITC
If no
If yes
5) Order issued by ITA (DOC)
If no
If yes
6) Suspension agreements negotiated
If no
If yes
Steps 7 and 8
repeated
until case ends
7) Administrative Review initiated
If no
U.S. Customs and Border Protection
8) Liquidation initiated
9) Investigation Terminated

9. Flow Chart for AD/CVD Investigations
Day 20 45
85 CVD
160 ADD
160 CVD
235 ADD
205 CVD
280 ADD
212 CVD
287 ADD
Milestone
Petition filed
Decision on initiation
Preliminary injury determination by ITC
Preliminary determination by DOC
(CBP begins suspension of liquidation)
Final determination by DOC
Final injury determination by ITC
Publication of order in Federal Register
(cash-only deposits required)
Time frames are imposed by statute
U.S. Customs and Border Protection

10. Initiation of an AD/CVD Case
A petition is filed with the ITC alleging injury to an industry in the U.S.
Petitions may be filed with ITC and DOC by:
a U.S. manufacturer
a trade/business association of manufacturers in the U.S.
a recognized labor union or group of workers who represent the industry
Importers cannot file a petition
U.S. Customs and Border Protection

11. Investigation
The ITC will conduct an investigation, in concert with the DOC, to determine whether the domestic industry has been injured by AD/CVD cases
The ITA is the specific agency within the DOC that will conduct the investigation to determine whether goods are sold at less than fair value or whether a foreign government subsidy has been provide to foreign exporters
U.S. Customs and Border Protection

12. Preliminary Determination
When a reasonable indication of injury is found, the preliminary determination is issued.
If the ITC finds that there is no material injury to U.S. industry, the case is terminated, if a reasonable indication of injury is found, the case continues
If the DOC finds positive results, CBP withholds liquidation and charges AD/CVD suggested by DOC
If the DOC investigation is negative, CBP takes no action and the case continues and further information is sought until a final determination is made by DOC
Bonds are accepted
U.S. Customs and Border Protection

13. Final Determination
If either the ITC or DOC find negative results – the case is cancelled
If DOC findings are affirmative – Liquidation Suspension is ordered and final AD/CVD rates are issued
The Final Order is published in the Federal Register and AD/CVD rates are deposited in cash
The entries will remain suspended for a minimum of one year
U.S. Customs and Border Protection

14. Administrative Review
Requested by either the petitioner or the respondent
Requested during the anniversary month of the order
Used to establish final AD/CVD rates
If not requested, the entries liquidate at the AD/CVD rate required at the time of entry
May be requested every year or may not be requested for several years
U.S. Customs and Border Protection

15. Liquidation
Entries are not liquidated until liquidation instructions are issued by DOC
Entries must be liquidated within 6 months from the date the notice of the suspension of liquidation is published in the Federal Register
If entries are not liquidated within this time frame, the entries deem liquidate
U.S. Customs and Border Protection

16. Reimbursement Statements
States whether the importer has entered into any agreements for reimbursement of the anti-dumping duty paid
19 CFR requires the filing of the certificate
If the Reimbursement Statement is not presented prior to liquidation, antidumping duties are doubled plus interest per 19 CFR (f)(2)
Although the DOC law provides for a Reimbursement Statement for both AD and CVD cases, to date, they have not required them for CVD case
U.S. Customs and Border Protection

17. Injunctions
A court order that either prohibits or compels (“enjoins” or “restrains”) a party from continuing a particular activity.
Stops the liquidation of entries
Importer has 30 days after the date of the publication of the final results of an Administrative Review by DOC in the Federal Register in which to file a summons with the court challenging the results
U.S. Customs and Border Protection

18. Bond Sufficiency
Bonds are accepted only in the preliminary stage of the AD/CVD case
A Single Entry Bond (SEB) may be posted for estimated AD/CVD in addition to any other bond for entry requirements
If the amount of the estimated AD/CVD is less than 5% ad-valorem, a continuous transaction bond may be posted to cover the AD/CVD and all other entry bonding requirements
Continuous Bond Calculation: 10% duties, taxes and fees paid the previous 12 months + DOC rate x import value of merchandise for previous 12 months
Once the AD/CVD case becomes and order only cash deposit may be posted
U.S. Customs and Border Protection

19. The Meaning of the AD/CVD Case Number
Represents the type of duty
A for Anti-dumping
C for Countervailing
Commodity Code
Exporter or Manufacturer Code
Country Code
U.S. Customs and Border Protection

20. QUESTIONS ?
U.S. Customs and Border Protection