Lisa Gelsomino, President/CEO Avalon Risk Management COAC … · Lisa Gelsomino, President/CEO –...

Wendy Frankel, Director of Customs Liaison Unit (CLU), AD/CVD Operations Group

Enforcement & Compliance (E&C), International Trade Administration (ITA), Dept. of Commerce (DOC) • As Director of CLU, Ms. Frankel is responsible for coordinating communication with CBP and ICE. • Ms. Frankel also serves on the ITDS Board of Directors at the BIEC to coordinate ACE matters. • Prior to taking over CLU, Ms. Frankel served as Office Director in the China/Nonmarket (NME) AD/CVD Enforcement Group for 8 years and 2 years at ITDS coordinating outreach with over 70 PGAs.

Elisabeth Urfer, Senior Analyst for Customs Liaison Unit (CLU), AD/CVD Operations Group

Enforcement & Compliance (E&C), International Trade Administration (ITA), Dept. of Commerce (DOC) • With over 20 years experience in international trade, Ms. Urfer joined the CLU after working as a

consultant for 15 years at Capital Trade, Inc. assisting with various trade issues. • Prior to Capital Trade, Ms. Urfer worked five years as Senior Import Compliance Specialist and

Financial Analyst with the Department of Commerce.

Lisa Gelsomino, President/CEO – Avalon Risk Management

COAC 14th Term, Co-Chair of Trade Enforcement and Revenue Collection (TERC) • AD/CVD Working Group http://www.cbp.gov/trade/stakeholder-engagement/coac/coac-public-meetings/coac-

quarterly-meeting-january-13-2016-%E2%80%93-new-orleans-la

• International Trade Surety Association (ITSA) and Customs Surety Executive Committee (CSEC) • Email: [email protected] or Phone 847-700-8192

http://www.cbp.gov/trade/stakeholder-engagement/coac/coac-public-meetings/coac-quarterly-meeting-january-13-2016-%E2%80%93-new-orleans-la

























mailto:[email protected]

http://www.ncbfaa.org/Scripts/4Disapi.dll/4DCGI/cms/review.html?Action=CMS_Document&DocID=8581&MenuKey=education

Antidumping & Countervailing Duty

Enforcement & Compliance

Unofficial Document – For Internal Government Presentation Purposes Only

Presentation to the National

Customs Brokers and Forwarders

Association of America

January 20, 2016

Wendy Frankel & Elisabeth Urfer

Unofficial Document – For Presentation Purposes Only

Antidumping and

Countervailing Duty

Proceedings

3

Enforcement and Compliance


Department of Commerce

International Trade

Administration


Operations

Customs Liaison

Unit

4


Antidumping and Countervailing Duty Orders in Effect by Country As of September 30, 2015

5

AD/CVD Orders by Commodity:


Steel Related 146

Chemicals 45

Other Metals & Articles of Metal 35

Plastics & Rubber 22

Foodstuffs 20

Machinery & Automotive 16

Paper & Paperboard 12 Textiles 9 Other

Mfg. 8

Cement & Ceramic 3

Minerals 2

6

E&C Staffing Levels


60

41 36

11 6

28 33

23 18 16

23

38

69

62

0

10

20

30

40

50

60

70

80

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Cases Initiated

Nu

mb

er o

f C

ase

An

alyst

s

Nu

mb

er o

f A

D/C

VD

Inv

esti

gat

ions

Init

iate

d


Number of AD/CVD Investigations Initiated & Number of Case Analysts

7

New Analysts – Learning Curve

Learning curve for new analysts is

approximately 12-18 months.

DOC analysts start with intensive two week

training course that is supplemented with

mentoring, additional courses, etc.

Over a quarter of E&C analysts have been in

E&C less than one year.


8

Types of AD/CVD Proceedings

Investigation*

Administrative Reviews*

New Shipper

Sunset

Anti-Circumvention

Scope Rulings

Changed Circumstance Reviews

9 Unofficial Document – For Presentation Purposes Only

70 Feet

288 Feet

555 Feet

700 Feet

White House Capitol Washington Monument Pages filed in ACCESS FY 2015

Comparison of the Number of pages filed in ACCESS in FY2015

2,122,437 pages

Pages filed in ACCESS on AD/CVD Proceedings


Number of AD/CVD Determinations in FY 2014 and 2015


384 determinations in FY2015; 387 determinations in FY2014

11

0

20

40

60

80

100

120

140

160

180

38 32

162

20 24

0

39

8

42

17

2

77

22

141

23 15

0

47

8

42

10 2

2015

2014

Types of AD/CVD Proceedings: Investigation

• AD & CVD • Commerce and the ITC

receive petitions from the affected U.S. industry.

• Covers 6-12 months of imports

• If DOC finds dumping or subsidization and ITC finds injury, an order is issued

Investigation


12

AD/CVD Investigation Responsibilities

Petition

ITC Injury

Commerce Dumping or

subsidization

Order


13

DOC Preliminary

Determination*** Order

Issued

DOC Final

Determination**

* These dates may be extended under certain circumstances; CVD final may also be aligned with AD final.

** If negative determination, the investigation ends.

***Department issues Customs instructions suspending liquidation; If Affirmative Finding of Critical Circumstances: Suspension is

retroactive 90 days

7 Days from

ITC Final

ITC

Final

Determination**

75 Days after

DOC Prelim* 45 Days from

DOC Final

45 Days from

Petition

AD: 140 Days

from Initiation*

---

CVD: 65 Days

from Initiation*

20 Days from

Petition*

Initiate

Investigation

Day 0

Petition

Filed ITC

Preliminary

Determination**

Statutory Timeline of an AD/CVD Investigation


14

Instructions in an AD/CVD Investigation:

Initiation (informational)

DOC Preliminary Determination

Affirmative Suspend liquidation; Collect cash deposit

Negative

No suspension of liquidation; No

collection of cash deposit

DOC Final Determination

Affirmative Continue suspension of

liquidation; Collect cash deposit

Negative Terminate suspension

of liquidation and refund duties.


15

Types of AD/CVD Proceedings: Administrative Review

• AD & CVD • Parties have an

opportunity to request a review of rates every year

• Covers 12 months of imports; 12-18 months in the first review

Administrative Review


16

CBP Notified

of Assessment

DOC Final

Results**

* This date may be extended to 365 days.

** This date may be extended to 180 days.

15 days from

publication of

Final Results 120 days after

publication of

Preliminary

Results*

245 days

from last

day of

Anniversary

Month

Month following

Anniversary

Month

Initiation

Notice

Publishes

AD/CVD

Order

Published

(Anniversary

Month)

Interested

Party

Requests

Review

DOC Preliminary

Results*

Within 90

days of

Initiation

Notice

Deadline to

Withdraw

Review

Request

Statutory Time Frame for AD/CVD Administrative Reviews


17

Instructions in an AD/CVD Administrative Review

Initiation

No companies requested: Liquidate all companies at rate in effect at time of

entry (public)

Some companies requested: Liquidate only companies not requested for review

(public)

Final Results of Review

Cash Deposit instructions for future entries (public)

Liquidation Instructions for reviewed companies: CVD public/AD public or BPI:

Exporter/

Producer rates (public)

Importer Specific Rates (BPI)

All Others/NME Entity (public)


18

Other Types of AD/CVD Proceedings

• Parties that have recently begun to export to the United States have the opportunity to request a New Shipper Review

• Covers 6-12 month of imports New Shipper

• Every 5 Years • Order wide, not company specific • Commerce determines whether revocation of an AD or CVD

order, or termination of a suspended investigation, would be likely to lead to a continuation or recurrence of dumping or a countervailable subsidy; the ITC determines whether revocation or termination would be likely to lead to continued or recurring material injury to the domestic industry

Sunset

• Clarification of the scope of an existing order to include: • Products that underwent U.S. or third country processing or

assembly • Products that underwent minor alterations • Later developed merchandise

Anti-Circumvention


19

Other Types of AD/CVD Proceedings

Investigation

• Clarification of the scope coverage of the original antidumping duty order

• Scope determinations are independent from HTS classification determinations by CBP

Scope Rulings

• Domestic parties are no longer interested in covering certain products under a particular AD/CVD order

• Successorship, e.g., changes in the structure of a respondent, such as a merger or spinoff

Changed Circumstance

Reviews


20

Customs Instructions


E&C’s instructions serve to affirm and explain to CBP personnel E&C case decisions and enforcement information that has been entered into ACE to determine if the merchandise being imported is potentially subject to AD/CVD duties.

Instructions tell CBP what rates to apply to the companies investigated and/or reviewed.

E&C maintains over 80 templates

CBP will not execute E&C’s decisions without instructions.

If the instructions are not clear, CBP will send an inquiry through the CLU for more information.

21

E&C transmits

instructions to CBP HQ

through ACE

CBP Reviews

Instructions

CBP then transmits

the instructions to its ports.

The ports identify entries

covered by E&C’s

instructions.

The ports carry out the instructions, i.e., collect

cash deposits, liquidate, etc.

Instructions Process for AD/CVD


Retrospective System

23

U.S. Retrospective System

U.S. AD/CVD duties are assessed on a

retrospective basis

Initial investigation-

sets cash deposit rates.

Administrative Review-sets

actual duties to be assessed.


24

Cash Deposits Versus Assessments

Deposits are a temporary payment of estimated

antidumping or countervailing

duties at the time of entry.

Assessment is the actual amount of antidumping or countervailing duties due on a given entry of

subject merchandise.


25

Timeline of Cash Deposits and Liquidation


26

*Note: Litigation may delay liquidation

* * *

Scope

27

Pre-Order Scope

Scope of the Order

(definition of what is covered merchandise)

Petition

NIS, CEE AD/CVD Policy

Branch

Comments from parties during the

investigation


28

Scope of AD/CVD Order

Scope of the AD/CVD Order

Narrative Description is

dispositive

HTSUS numbers are for convenience

only


29

Post Order Rulings Clarify

the Scope

Post Order Rulings do not

Change the Scope

Post order rulings clarify

whether a product is

covered by the scope of the

order

Commerce looks at the petition, the

ITC report and prior scope

rulings

Post Order Scope Determinations


30

Finding Scope Decisions on E&C Website

Trade.gov/enforcement

Clicking here will

take you to the

listing of scopes

and rulings by

country and product

Clicking here will take

you to a page where

you can find more

information on scope.

You can launch to the

scope and rulings

pages, the quarterly

scope publication, and

full scope decisions

for selected cases


31

From Previous Page

Finding Scope Decisions on E&C Website Finding Scope Decisions on E&C Website



32




33

Information on how to

request a scope ruling

Scope Rulings from 1990-

present. Updated Quarterly




34

Customs Liaison

Unit

35

Customs Liaison Unit


Department of Commerce

International Trade

Administration


Operations

Customs Liaison

Unit

36

CLU’s Clients

Services three main clients:

Enforcement and

Compliance case teams

Customs and Border

Protection (CBP)

Headquarters (HQ) and the

ports

Trade Community (importers,

brokers, sureties, law firms, etc.)


History of CLU

Enforcement and Compliance (E&C) established the Customs Liaison Unit (CLU) in 2006 with a primary purpose of serving as a bridge

between E&C staff and CBP.

The CLU’s goal is to facilitate the flow of information between E&C and CBP to support the accurate collection and assessment of AD/CV duties and proper enforcement of the Antidumping and Countervailing Duties

(AD/CVD) laws.

The CLU represents E&C as an active participant in the Commercial Operations Advisory Committee (COAC), AD/CVD Working Group; on

the International Trade Data System (ITDS) Board of Directors; and as a member of the Border Interagency Executive Committee (BIEC) Process Coordination, Risk Management and External Engagement Committees.


CLU Call Center

E&C’s liaison unit has created a “call

center” that receives and responds to

inquiries from the Trade

Community.

Parties can ask questions regarding the implementation

of E&C decisions, on such wide-

ranging matters as scope, suspension of liquidation and

assessment.

(202) 482-0984

Call Center


Enforcement & Compliance works closely with U.S. Customs and Border Protection (CBP) and Immigration and Customs Enforcement (ICE) in a variety of ways to try to counter and thwart various duty evasions schemes.

While Commerce has no statutory mandate to investigate AD/CVD duty evasion, we have the statutory authority, and the responsibility, to provide information to CBP and the U.S. Department of Homeland Security (DHS) to assist them in uncovering fraud.

Coordination with DHS Agencies


40

Tackling AD/CVD Evasion

When information comes to light during the course of E&C’s proceedings that indicates potential misreporting or other fraudulent activity, we make full use of our statutory authority to timely provide that information to CBP and ICE.

E&C also refers to CBP any allegations of fraud or evasion we receive from the public.

Commerce further supports CBP/ICE’s efforts at countering evasion by reviewing information submitted to CBP to identify any discrepancies or claims that contradict information on Commerce’s Record of the underlying proceeding.

In such cases, where the law allows, Commerce will also use that information in our proceedings.


41

1432

357

687

230

297

235

44%

11%

21%

7%

9%

8%

Fiscal Year 2015 Customs Liaison Unit Activity

Total AD/CVD InstructionsIssued

CBP Port Inquiries Received

CLU Call Center Calls

CBP Email inquiries

E&C Case Team Inquiries

Data Queries Run

Total AD/CVDInstructions Issued

CBP Port InquiriesReceived

CLU Call CenterCalls

1233

400

657

1348

370

599

1432

357

687

E&C Communication with CBP and the Trade

FY 2013 FY 2014 FY 2015

Customs Liaison Unit Activity


Challenges Facing E&C

Filing AD/CVD Entries in ACE

43

Filing AD/CVD Non-Reimbursement Certifications in the Automated Commercial Environment (ACE)

Commerce’s regulation, 19 C.F.R. 351.402(f)(2), requires an importer, prior to liquidation of an entry subject to antidumping duties, to file a certificate with CBP stating whether it has or has not entered into any agreement or understanding with the manufacturer, producer, exporter, or seller for the payment or the refunding of AD/CVD assessed upon its imports.

This certificate is required for each entry (or a group of entries) of merchandise subject to antidumping duties, and must identify the relevant entries.

If the importer does not provide the non-reimbursement certificate prior to liquidation, Commerce presumes that the importer was reimbursed for such duties and instructs CBP to double the amount of applicable AD/CVD duties. See 19 C.F.R. 351.402(f)(3).


44


Two Options in ACE

Line Item Certification

Importer Level (blanket)

Certification


45


Guidance on filing non reimbursement certificates for AD/CVD entries: http://www.cbp.gov/sites/default/files/documents/guidance_for_cert_3.pdf

ACE Entry Summary Instructions: http://www.cbp.gov/sites/default/files/documents/ace_es_instructions_3.pdf

CBP Entry Summary Business Rules and Process Document (TRADE) : http://apps.cbp.gov/csms/docs/18876_117841845/ACE_EntrySummaryBusinessProcess_TRADE_V3_3.pdf


46

Contact Information

Wendy J. Frankel

(202) 482-5849

[email protected]

Customs Liaison Unit Call Center:

(202) 482-0984

Elisabeth Urfer

(202) 482-0414

[email protected]


47

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