CBP Provides Guidance for Use of STBs on AD/CVD Concerns
CBP's Office of International Trade issued a May 1 memo to give guidance to CBP on protecting revenue when a port believes a transaction secured through a continuous bond would jeopardize the revenue due to AD/CVD concerns. Additional revenue protection can be achieved through cash payment with live entry or obtaining additional security through a Single Transaction Bond (STB), said CBP.
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The guidelines provide for the appropriate use of the port’s authority to require additional bonding in a uniform manner, said CBP. Each import transaction will be judged on its own merits and only on a case-by-case basis will the STB be required. CBP didn't release the memo.
CBP said the guidelines address the following areas:
- Making determinations that there is a reasonable belief of possible revenue risk.
- STB use in conjunction with a continuing review or investigation risk pertaining to AD/CVD orders.
- How to determine the amount of the STB. The amount, in general, will be based on the value of the merchandise times the AD/CVD rate that would apply if the goods were subject to AD/CVD. Should that rate not be known, the highest AD/CVD rate for that commodity will be used. The amount of the continuous bond will always be considered before requiring the STB.
- Importers/brokers will be provided written notice of the STB requirement.
- The notice will include:
- The amount of the STB.
- The general reason why the STB is being required.
- When to discontinue the requirement of STBs and how to return the STB if no revenue risk is determined to exist.
- The STB requirement will be discontinued when the review is completed and compliance is determined.
- When the review concludes that there was no revenue risk, the STB will be returned.
- The importer will be given written notice when the requirement for the STB is discontinued.
- All of the ports will be made aware when one port requests an STB to address possible placement of the revenue in jeopardy involving AD/CVD so that it will be required uniformly at each port.
(See ITT's Online Archives 12022809 for summary of the February COAC meeting and discussion working with CBP officials on a plan to centralize the Single Transaction Bond (STB) system and process.