Chapter 40. Antidumping and Countervailing Duties.

Transcription

1 Chapter 40.. PART 159 SUBPART D. Rate for Antidumping (ADD) and Countervailing (CVD) duties is based on: Country of Origin, and Manufacturer and/or Exporter GENERAL ADD AND CVD RATE. Tied to a country is called country-wide rate, Expressed as A for ADD or C for CVD, General rate is the default rate unless manufacturer/exporter specific rate is supplied by the customs examiners. SPECIFIC ADD AND CVD RATE. The rate is specifically tied to an exporter or exporter-producer 44 Expressed as A or C , where last three digits are assigned to a particular exporter or exporter/producer ASSESSMENT AT THE TIME OF ENTRY. 44 I.e. the exporter may export merchandise under specific rate only if sourced from a particular producer or manufacturer Law Office of Yuri Starikov, LLC (no claim to orig. U.S. Gov. works) Page 725

2 Both, ADD and CVD duties, if applicable, are assessed on merchandise at the time of entry. Example: Merchandise formally entered from Chile, subject to Chile-US Free Trade Agreement, free of duty. The merchandise, however, is subject to 100% Antidumping and 50% Countervailing duties. The merchandise arrives by ship at the port of Seattle. The merchandise is worth $10,000. What are the fees? Regular Duty: Free (stated in the fact pattern) MPF: 0.00 (Chile-US FTA) HMF: $12.5 (0.125% of $10,000) ADD: $10,000 (100%) CVD: $5,000 (50%) Total duties: $15, ANTIDUMPING / COUNTERVAILING DUTY ORDER WHO DETERMINES ANTIDUMPING / COUNTERVAILING DUTIES? Two U.S. government agencies are responsible for making investigation before antidumping / countervailing duty order is imposed: 1. U.S. Department of Commerce, responsible for calculating margin / percentage of the duty, and 2. U.S. International Trade Commission, responsible for determining whether the United States industry suffered a material injury as a result of antidumping / countervailing duties. WHEN ANTIDUMPING / COUNTERVAILING DUTIES CAN BE IMPOSED? 2013 Law Office of Yuri Starikov, LLC (no claim to orig. U.S. Gov. works) Page 726

3 When both agencies - U.S. Department of Commerce and U.S. International Trade Commission - make final affirmative determination. HOW ANTIDUMPING / COUNTERVAILING DUTIES ARE IMPOSED? Through the issuance of an ORDER by the Secretary of the U.S. Department of Commerce. The order is published in the Federal Register; The order instructs CBP to: Access antidumping / countervailing duties, and Require a cash deposit of estimated antidumping or countervailing duties at the rates included in the final determination. HOW LONG DOES THE ORDER REMAIN IN EFFECT? Until revoked. ASSESSMENT OF DUTIES The antidumping / countervailing duty paid at the time of entry are cash deposits of estimated antidumping / countervailing duties. The final amount of duties owed is not determined until Commerce conducts an administrative review to establish the final antidumping / countervailing duty rates on past entries. The final antidumping / countervailing duty amount may increase, decrease, or stay the same from the antidumping / countervailing duty cash deposit paid at the time of entry. After Commerce sends instructions to CBP on the final antidumping / countervailing duty rate for the entry, CBP will assess this final duty. CBP will issue a bill for any increase in duty, and refund any decrease of duty Law Office of Yuri Starikov, LLC (no claim to orig. U.S. Gov. works) Page 727

4 PRELIMINARY ASSESSMENT. U.S. Department of Commerce makes a preliminary determination in the ORDER for antidumping / countervailing duty amount and instructs CBP to collect duties at that amount. REVIEW OF PRELIMINARY ASSESSMENT. Review must be requested. Importers and domestic producers can request a review of preliminary margin. Based on the results of the review, the rate of duty can be adjusted. Types of reviews include: Administrative Reviews; New Shipper Reviews; Expedited Antidumping Reviews. FINAL ASSESSMENT. Final liability for antidumping and countervailing duties is determined after merchandise is imported. U.S. Department of Commerce instructs CBP to liquidate entries at: New rate which was established as a result of review Original rate if: o o No review is requested, or Review results did not change the antidumping /countervailing duty rate. INTEREST RATES Law Office of Yuri Starikov, LLC (no claim to orig. U.S. Gov. works) Page 728

5 Interest is assessed on the underpayment of duties and fees from the date the importer is required to deposit estimated duties (i.e. at the time of filing CBP Form 7501). The estimated duties must be deposited in the form of cash (bond in limited circumstances is allowed). The amount duties required to be deposited will be the amount at the time the U.S. Department of Commerce publishes antidumping / countervailing duty order. The publication is made in the Federal Register. Interest for underpayments /overpayments will accrue from the date that a cash deposit is required to be deposited for the entry through the date of liquidation of the entry. Example U.S. Importer imports $1,000 of Chinese Pencils on January 1, The pencils are subject to 100% antidumping duty at that time. U.S. Importer makes a cash deposit in the amount of $1,000. On June 1, 2014 U.S. Department of Commerce, after review, publishes an order stating that pencils imported from January 1, 2013 through December 31, 2013 are subject to 110% antidumping duty rate, as a result of review. The entry liquidates on September 1, When does the interest begin to accrue? Answer: From June 1, 2014 through the date of liquidation on September 1, BOND v. CASH DEPOSIT. GENERAL RULE. Cash deposit is required for entries subject to antidumping / countervailing duty order. EXCEPTION Law Office of Yuri Starikov, LLC (no claim to orig. U.S. Gov. works) Page 729

6 In limited circumstances, bond may be allowed instead of the cash deposit. If allowed, then: Antidumping / countervailing duty is 5% only single transaction bond allowed. Antidumping / countervailing duty is 5% either continuous bond or single transaction bond allowed. ENTRY CODES. CBP FORM 7501 INSTRUCTIONS. Merchandise subject to Antidumping / Countervailing Duty orders is entered under the following codes: 03 = Consumption; 07 = Consumption + Quota/Visa; 34 = Warehouse Withdrawal; 38 = Warehouse Withdrawal + Quota/Visa. RESUBMISSION PERIOD FOR REJECTED ENTRY SUMMARY. CBP DIRECTIVE A. ANTIDUMPING / COUNTERVAILING DUTY ENTRY SUMMARY REJECTIONS. If the entry summary (CBP Form 7501) was rejected by CBP, filer has 10 working days after the date of rejection (i.e. day of rejection + 10 working days) to resubmit the entry summary with corrected errors. ALL OTHER REJECTIONS 2 WORKING DAY RULE. If entry summary (CBP Form 7501) is not filed at the time of entry, then it must be filed within 10 working days of: Date of entry (e.g release), or 2013 Law Office of Yuri Starikov, LLC (no claim to orig. U.S. Gov. works) Page 730

7 Date of immediate delivery release (under special permit for immediate delivery) The day of initial submission to CBP is counted against the 10 working day filing requirement (i.e. day one = day of initial submission). If CBP rejects filer submission (for incorrect data, errors, or other reasons), filer has the later of: 10th Working Day to resubmit the entry summary (CBP Form 7501), if it was filed before 10th working day; or 2 Working Days after the date of rejection QUESTION 1. Filer filed the 01 type consumption entry via CBP Form 7501 (with estimated duties attached) on Working Day 4. On Working Day 5 CBP rejected entry summary due to errors. When is the latest time the filer can resubmit the entry summary? Quiz Break Answer: Working Day 10. QUESTION 2. Filer filed the 01 type consumption entry via CBP Form 7501 (with estimated duties attached) on Working Day 7. On Working Day 9 CBP rejected entry summary due to errors. When is the latest time the filer can resubmit the entry summary? Answer: Working Day 12. QUESTION 3. Filer filed the 03 type (AD/CVD) entry via CBP Form 7501 (with estimated duties attached) on Working Day 8. On Working Day 9 CBP rejected entry summary due to errors. When is the latest time the filer can resubmit the entry summary? Answer: Working Day 20. ANTIDUMPING / COUNTERVAILING DUTY REIMBURSEMENT Antidumping / countervailing duty rate is calculated by the U.S. Department of Commerce Law Office of Yuri Starikov, LLC (no claim to orig. U.S. Gov. works) Page 731

8 The U.S. Department of Commerce calculates antidumping / countervailing duty rates based on normal value as that value applies to: Exporter, and/or Producer / Manufacturer If the exporter / producer / manufacturer pays or reimburses the importer for antidumping / countervailing duties, then these antidumping / countervailing duties will be added to the price. Example U.S. Department of Commerce issues a final antidumping duty order for Chinese Bedroom Furniture at the rate of %. U.S. Importer is approached by Chinese Exporter who tells not to worry about antidumping duty because Chinese Exporter will suck up the costs of antidumping duty. Chinese Exporter Invoice Chinese Bedroom Furniture: $2, Antidumping Duty Discount: $1, Total Amount Due: $1,000 U.S. Importer purchases bedroom 2013 Law Office of Yuri Starikov, LLC (no claim to orig. U.S. Gov. works) Page 732

9 furniture from the Chinese Exporter for $1,000 and pays antidumping duty in the amount of $1, to CBP. CBP finds out that the U.S. Importer was reimbursed for antidumping duty, and adds the reimbursement amount to the price of invoice: Chinese Bedroom Furniture:... $1, Antidumping Reimbursement Amount:... $1, Total Amount Dutiable:... $2, Antidumping Duty Due (198.08% of $2,980.80):... $5, Exam Tip If the importer is reimbursed, an amount equal to the reimbursement, but not more than twice the antidumping / countervailing duties will be assessed. CERTIFICATE OF REIMBURSEMENT. The importer must file a certificate with CBP Port Director stating whether or not the importer has been reimbursed for antidumping / countervailing duties. The certificate must be files with: 1. Each individual entry, or 2. Multiple entries. Time of Filing: Prior to Liquidation of Entry Law Office of Yuri Starikov, LLC (no claim to orig. U.S. Gov. works) Page 733

10 Form of Language Is Specified in regulations: CERTIFICATE OF REIMBURSEMENT I hereby certify that I (have) (have not) entered into any agreement or understanding for the payment or for the refunding to me, by the manufacturer, producer, seller, or exporter, of all or any part of the antidumping duties or countervailing duties assessed upon the following importations of (commodity) from (country): (List entry numbers) which have been purchased on or after (date of publication of antidumping notice suspending liquidation in the Federal Register) or purchased before (same date) but exported on or after (date of final determination of sales at less than fair value). CBP S BLANKET CERTIFICATE PROGRAM. CBP adopted a policy allowing U.S. Importers to file blanket certificates of reimbursement instead of filing certificates on case-by-case basis. The blanket certificate must meet the following requirements: State specific antidumping / countervailing duty case number; and State specific manufacturer(s) (if any); and State the time period to which the blanket certificate applies Law Office of Yuri Starikov, LLC (no claim to orig. U.S. Gov. works) Page 734

11 The applicable time period is the longer of: 12 months, or Administrative review period. REIMBURSEMENT CERTIFICATE SIGNATURE. Reimbursement certificate must be signed by the importer of record. In case of corporate importer of record, certificate must be signed by authorized officer of the company. If customs broker is NOT the importer of record, that customs broker cannot sign the reimbursement certificate. Note that this is the departure from CBP regulations that allow customs brokers to sign on behalf of importers once authorized by power of attorney. Original signature not required. Photocopies or facsimile copies are acceptable. Electronic signatures are acceptable for entries filed through: Automated Commercial Environment (ACE), or Automated Commercial System (ACS) When customs broker submits electronic certificate for the importer of record, that customs broker should have the signed original/photocopy on file because CBP reserves the right to request a signed copy. FAILURE TO SUBMIT CERTIFICATE OF REIMBURSEMENT = PRESUMPTION OF REIMBURSEMENT. If the importer of record does not provide Certificate of Reimbursement prior to liquidation, the CBP will presume that the reimbursement took place and double the amount of antidumping / countervailing duties due Law Office of Yuri Starikov, LLC (no claim to orig. U.S. Gov. works) Page 735