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June 15, 2017

CBP Posts Intent to Distribute AD, CV Duties to Affected Domestic Producers

On May 31, 2017, U.S. Customs and Border Protection (CBP) published a notice of intent to distribute assessed antidumping (AD) or countervailing (CV) duties (known as the “continued dumping and subsidy offset”) to affected domestic producers, for Fiscal Year 2017.  In the notice, CBP provides instructions for affected domestic producers (or others alleging eligibility to receive a distribution) to timely file certifications claiming distributions in connection with antidumping orders, countervailing duty orders, or findings under the Antidumping Act of 1921, listed in the notice.  The United States International Trade Commission (USITC) submits to CBP a list of the affected domestic producers that are potentially eligible to receive the offset in connection with an order or finding.

An “affected domestic producer” is any manufacturer, producer, farmer, rancher, or worker representative (including associations of such persons) who:

The Continued Dumping and Subsidy Offset Act of 2000 (CDSOA) amended the Tariff Act of 1930 to provide that, subject to conditions, AD or CV duties will be distributed to affected domestic producers for certain qualifying expenditures that these producers incur after the issuance of an order or finding (and prior to its termination).[1]  CDSOA was subsequently repealed by the Deficit Reduction Act of 2005.  The repeal became effective October 1, 2005; however, pursuant to section 7601(b) of the Deficit Reduction Act, all duties on entries of goods made and filed before October 1, 2007, will be distributed as if CDSOA had not been repealed.  For duty orders or findings that have not been revoked, expenses must be incurred before October 1, 2007 to be eligible for offset.  For duty orders or findings that have been revoked, expenses must be incurred before the effective date of the revocation, as well as prior to October 1, 2007, to be eligible for offset. 

CBP has stated that even with the repeal of CDSOA, the distribution process will continue for an undetermined period due to statutory constraints and certain other factors affecting the assessment and collection of AD and CV duties.  Specifically, the process will continue until all entries made prior to October 1, 2007 are liquidated and the duties are collected; therefore, the monies available for distribution, are expected to diminish over time.  CBP also reiterated in the notice that amounts distributed may be subject to recovery as a result of reliquidations, court actions, administrative errors, and other reasons.

Certifications to claim distributions are due by July 31, 2017.

[1] CBP does not distribute AD or CV duties collected on goods from NAFTA countries.