*EPF110 07/12/2004
Text: U.S. Issues New Anti-dumping, Countervailing Duty Guidelines
(Move will streamline duty collection process, Customs says) (840)

U.S. Customs and Border Protection (CBP) has issued streamlined guidelines for the collection of anti-dumping and countervailing duties on agriculture and aquaculture imports.

The new guidelines will produce shorter times for determining duty rates. Shorter processing times will result in savings for companies that import agriculture and aquaculture products, according to a July 9 CBP press release.

The period between the time Customs collects initial anti-dumping duties on agriculture products and the time the Department of Commerce determines the final antidumping duty rate has been, on average, 18 months, the release said.

Importers are encouraged to review their records to determine if their current anti-dumping and countervailing coverage is adequate, the release said.

A countervailing duty is an increased import duty imposed to offset a subsidy granted to a foreign product, the sale of which in the United States is injuring a U.S. producer of an identical or similar good.

More widely used anti-dumping duties are imposed on imports when it is determined that the foreign good is being "dumped" -- that is, sold, or likely to be sold, in the United States for "less than fair value." Less than fair value means the price of the import is less than the price of the good in the country of origin.

Customs and Border Protection is a part of the Department of Homeland Security.

Following is the text of the Customs press release:

(begin text)

U.S. Customs and Border Protection Announces New Guidelines for Antidumping Duty Cases

(Friday, July 09, 2004)

WASHINGTON -- U.S. Customs and Border Protection Commissioner (CBP) Robert C. Bonner acted today to ensure the collection of duties by announcing new guidelines for determining bond requirements for importers of agriculture/aquaculture merchandise who may be importing and selling products for less than the cost of manufacturing them, a practice known as "dumping".

"In addition to our priority anti-terrorism mission, U.S. Customs and Border Protection is the second largest revenue generating agency for the United States. We are charged not only with the protection of our nation's revenue through the collection of duties at our borders, but we are also partially responsible for ensuring that American business is competing on a level playing field," stated Commissioner Bonner. "These new guidelines are necessary to allow U.S. Customs and Border Protection to be more proactive in ensuring the collection of all appropriate antidumping and countervailing duties."

Anti-dumping cases are brought against companies who export merchandise into the U.S. and sell products for less than manufacturing and shipping costs. This practice is illegal and damages the fair market for similar items sold in the U.S.

U.S. Customs and Border Protection is responsible for the collection of antidumping duties set by the U.S. Department of Commerce (DOC). CBP collects the initial antidumping deposits on agriculture and aquaculture merchandise at the border. Once the Department of Commerce determines the final antidumping duty rate for the merchandise, CBP is required to collect the additional duties. The time between CBP's initial collection and final liquidation of duties can take an average of 18 months. Some companies are unwilling or unable to pay the additional duties due to the significant increase in costs and lengthy processing time. To streamline the process, U.S. Customs and Border Protection has amended surety bond guidelines so that collection of duties are timely and complete.

The amended U.S. Customs and Border Protection guidelines, Customs Directive 99-3510-004, will address CPB's ability to ensure collection of the revenue that is due to the U.S. Treasury. In general, CBP will determine continuous bond amounts for agriculture/aquaculture antidumping cases based on a company's potential antidumping liability using the value of import for the previous year. Final bond amounts will be set based on the revenue risk.

Periodic reviews will be conducted to monitor whether the bonds are sufficient and CBP may adjust the rates to calculate different bond amounts as circumstances warrant. One of the primary goals of bond sufficiency is ensuring CBP's ability to collect the antidumping and countervailing duties at liquidation and ensuring that the revenue is protected.

This action will not alter DOC requirements to post cash deposits or a single entry bond for antidumping duty. In addition, U.S. Customs and Border Protection will continue to monitor antidumping and countervailing duty cases for all commodities. If CBP determines any comparable risk with other commodities, a similar review of bond coverage will be performed.

Importers of agriculture or aquaculture merchandise currently subject to or potentially subject to antidumping or countervailing duty cases may wish to review their records to determine if their current bond coverage is adequate.

For more information or to view the complete amended guidelines, visit www.cbp.gov.

U.S. Customs and Border Protection is the agency within the Department of Homeland Security charged with the protection of our nation's borders. CBP unified Customs, Immigration, and Agriculture.

(end text)

(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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