CBP Could Set Risk-Based STB Requirements for New AD/CVD Importers as Early as September, COAC Says
CBP may soon implement increased bonding requirements for new importers that are bringing in merchandise subject to antidumping and countervailing duties, the Commercial Customs Operations Advisory Committee (COAC) Intelligent Enforcement Subcommittee said in a report. CBP hopes to issue a Federal Register notice in August setting new single transaction bond requirements as early as Sept. 21 or Sept. 28, the report said. But the COAC will recommend the new requirements be delayed until bonding formulas can be worked out, the report said.
“The current proposal will use statistically significant risk factors to identify high risk AD/CVD shipments that will require a single transaction bond (STB) based on the existing STB formula,” the COAC Trade Enforcement/Revenue Subcommittee’s Bond Working Group said in an issue paper. “The new methodology will be based on multi-line and single-line AD/CVD entries,” it said. “CBP will develop and publish guidance for the sureties and CBP on using the bond formula and move forward toward implementation.”
The STB requirements “would apply to any 03 or 07 AD/CVD entry types for ‘new’ importers who have never participated in an AD/CVD investigation or gone through the lengthy liquidation process,” the subcommittee report said. As provided for in Section 115 of the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA), which mandates the new risk-based bonding, “CTPAT Tier II and III members are exempt from these bonding requirements.” Surety members from the Bond Working Group have “conducted additional desk top exercises with this new formula for STBs and are still in active discussion with CBP on the outcome of these findings,” the report said.
“The COAC will be recommending that CBP delay implementation of this policy to allow more time for the desk top exercises with sureties to be reviewed and programming time for ABI vendors to program and test the new [CBP and Trade Automated Interface Requirements (CATAIR)] for this additional functionality,” the report said. “Failure to do so will result in unnecessary burden on the trade.”
CBP posted the following documents for the Aug. 21 COAC meeting in Buffalo, New York:
Administrative
- Agenda (here)
Intelligent Enforcement
- Intelligent Enforcement Subcommittee Trade Executive Summary (here)
- AD/CVD Issue Paper (here)
- Intellectual Property Rights Issue Paper (here)
- Risk-Based Bonding Issue Paper (here)
Next Generation Facilitation
- Next Generation Facilitation Subcommittee Trade Executive Summary (here)
Secure Trade Lanes
- Secure Trade Lanes Subcommittee Executive Summary (here)
- Export Modernization Issue Paper (here)
- In-Bond Issue Paper (here)
- In-Bond Working Group Draft Recommendations (here)
- Trusted Trader Issue Paper (here)
- Trusted Trader Working Group (Forced Labor) Draft Recommendations (here)
Rapid Response
- Rapid Response Trade Executive Summary (here)
- Northern Triangle Issue Paper (here)
- Northern Triangle Findings Report (here)
- Northern Triangle Working Group Draft Recommendations (here).
21st Century Customs Framework
21st Century Customs Framework Government Issue Paper (here).