Pasta AD/CV Scope Exclusions Based on Weight of Individual Packages, CBP Tells Avalon

Weight-based exclusions to antidumping and countervailing duty orders from the Commerce Department on pasta imports applies to the individual packages, CBP said in an internal advice ruling on Sept. 3 (here). CBP's ruling involved Avalon Risk Management, a surety with an unresolved legal claim following the importer's failure to pay the CV duties. While Avalon submitted a further review of protest, CBP said the issue isn't protestable due to the agency's ministerial role in applying Commerce's instructions. CBP instead considered an internal advice request from the Port of Boston on the same issues in ruling HQ H258302.

The ruling involved shipments of pasta from Italy imported by Primio Brands USA in 2012. Avalon argued that the pasta entries are excluded from the CV duty scope because "the commercial invoices described the imported pasta as weighing amounts greater than five pounds," said CBP. Although the scope of the antidumping and countervailing duty orders excludes pasta in packages greater than five pounds, Commerce subsequently clarified the exclusion to say it applies only to individual packages, said CBP. While "the total weight of the shipment box exceeded the five pounds limit set by the antidumping and countervailing duty orders, it is not bulk pasta because it was entered in packages that weighed one pound each," said CBP.

CBP also disagreed with Avalon as to when a suspension of liquidation of the involved entries was lifted. Notices of Commerce's initiation of administrative reviews in 2013 "removed the statutory suspension for the manufacturers that would not be reviewed," said CBP. "The notice in this case is like a notice of partial rescission of administrative review that lifts suspension of liquidation for manufacturers that are no longer subject to an administrative review," it said.

Avalon also argued that CBP liquidated the entries prematurely "because there was no extension of liquidation" and Commerce didn't publish final results of the administrative review until 2014. "Contrary to Avalon’s assertions, the initiation of administrative review for the countervailing duty order provided CBP notice from Commerce that lifted the entries’ suspension," said CBP. As a result, CBP found that the entries were properly liquidated, it said.