Executive Order on AD/CV Duty Collection Could Require Enhanced Bonds From First-Time Importers
First-time importers and importers delinquent on antidumping and countervailing duties may be subject to enhanced bonding and “other legal measures,” under an executive order signed by President Donald Trump on March 31 (here).
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The executive order, meant to address the issue of unpaid AD/CV duties, requires that the Departments of Homeland Security and Commerce and the U.S. Trade Representative develop a plan by June 29 “that would require covered importers that, based on a risk assessment conducted by CBP, pose a risk to the revenue of the United States, to provide security for antidumping and countervailing duty liability through bonds and other legal measures, and also would identify other appropriate enforcement measures.”
The executive order defines “covered importers” as importers of record for which CBP has no record of any imports, or has a record that the importer has failed to fully pay or not paid AD/CV duties. The executive order references 19 USC 4321, a provision created by Section 115 of the Trade Facilitation and Trade Enforcement Act of 2015 that required CBP to develop a program to adjust bond amounts for importers based on risk assessments. Customs-Trade Partnership Against Terrorism Tier 2 and 3 participants are exempt under the statute.