Sec. 421. Procedures for investigation of evasion of antidumping and countervailing duty orders
2,416 words·~11 min read·
/bill/114/hr/644/eah/section-421A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Title VII of the Tariff Act of 1930 ( 19 U.S.C. 1671 et seq. ) is amended by inserting after section 781 the following: In this section: The term administering authority has the meaning given that term in section 771. The term Commissioner means the Commissioner of U.S. Customs and Border Protection. The term covered merchandise means merchandise that is subject to— a countervailing duty order issued under section 706; or an antidumping duty order issued under section 736. Except as provided in subparagraph (B), the term evasion refers to entering covered merchandise into the customs territory of the United States by means of any document or electronically transmitted data or information, written or oral statement, or act that is material and false, or any omission that is material, and that results in any cash deposit or other security or any amount of applicable antidumping or countervailing duties being reduced or not being applied with respect to the merchandise.
Except as provided in clause (ii), the term evasion does not include entering covered merchandise into the customs territory of the United States by means of— a document or electronically transmitted data or information, written or oral statement, or act that is false as a result of a clerical error; or an omission that results from a clerical error. If the administering authority determines that a person has entered covered merchandise into the customs territory of the United States by means of a clerical error referred to in subclause
(I)or
(II)of clause
(i)and that the clerical error is part of a pattern of negligent conduct on the part of that person, the administering authority may determine, notwithstanding clause (i), that the person has entered such covered merchandise into the customs territory of the United States by means of evasion. For purposes of clause (ii), the mere unintentional repetition by an electronic system of an initial clerical error does not constitute a pattern of negligent conduct. A determination by the administering authority that a person has entered covered merchandise into the customs territory of the United States by means of a clerical error referred to in subclause
(I)or
(II)of clause
(i)rather than by means of evasion shall not be construed to excuse that person from the payment of any duties applicable to the merchandise. An investigation under this subsection shall be initiated with respect to merchandise imported into the United States whenever the administering authority determines, from information available to the administering authority, that an investigation is warranted with respect to whether the merchandise is covered merchandise that has entered into the customs territory of the United States by means of evasion. The administering authority shall determine whether to initiate an investigation under this subparagraph not later than 30 days after the date on which the administering authority receives a petition described in clause
(ii)or a referral described in clause (iii). A petition described in this clause is a petition that— is filed with the administering authority by an interested party specified in subparagraph (A), (C), (D), (E), (F), or
(G)of section 771(9); alleges that merchandise imported into the United States is covered merchandise that has entered into the customs territory of the United States by means of evasion; and is accompanied by information reasonably available to the petitioner supporting those allegations. A referral described in this clause is a referral made by the Commissioner pursuant to subsection (c)(1). Not later than 90 days after the administering authority initiates an investigation under paragraph
(1)with respect to merchandise, the administering authority shall issue a preliminary determination, based on information available to the administering authority at the time of the determination, with respect to whether there is a reasonable basis to believe or suspect that the merchandise is covered merchandise that has entered into the customs territory of the United States by means of evasion. If the administering authority determines that expedited action is warranted with respect to an investigation initiated under paragraph (1), the administering authority may publish the notice of initiation of the investigation and the notice of the preliminary determination in the Federal Register at the same time. Not later than 300 days after the date on which the administering authority initiates an investigation under paragraph
(1)with respect to merchandise, the administering authority shall issue a final determination with respect to whether the merchandise is covered merchandise that has entered into the customs territory of the United States by means of evasion. Not later than 10 days after receiving a request from the administering authority with respect to merchandise that is the subject of an investigation under paragraph (1), the Commissioner shall transmit to the administering authority copies of the documentation and information required by section 484(a)(1) with respect to the entry of the merchandise, as well as any other documentation or information requested by the administering authority. Not later than 10 business days after the date on which the administering authority initiates an investigation under paragraph
(1)with respect to merchandise, the administering authority shall provide to the authorized representative of each interested party that filed a petition under paragraph
(1)or otherwise participates in a proceeding, pursuant to a protective order, the copies of the entry documentation and any other information received by the administering authority under subparagraph (A). If an authorized representative of an interested party participating in an investigation under paragraph
(1)has access to business proprietary information released pursuant to an administrative protective order in a proceeding under subtitle A, B, or C of title VII of the Tariff Act of 1930 that is relevant to the investigation conducted under paragraph (1), that authorized representative may submit such information to the administering authority for its consideration in the context of the investigation conducted under paragraph (1). In making a determination under paragraph
(2)with respect to covered merchandise, the administering authority may collect such additional information as is necessary to make the determination through such methods as the administering authority considers appropriate, including by— issuing a questionnaire with respect to such covered merchandise to— a person that filed an allegation under paragraph (1)(B)(ii) that resulted in the initiation of an investigation under paragraph (1)(A) with respect to such covered merchandise; a person alleged to have entered such covered merchandise into the customs territory of the United States by means of evasion; a person that is a foreign producer or exporter of such covered merchandise; or the government of a country from which such covered merchandise was exported; conducting verifications, including on-site verifications, of any relevant information; and requesting— that the Commissioner provide any information and data available to U.S. Customs and Border Protection, and that the Commissioner gather additional necessary information from the importer of covered merchandise and other relevant parties. If the administering authority finds that a person described in clause (i), (ii), or
(iii)of paragraph (4)(A) has failed to cooperate by not acting to the best of the person’s ability to comply with a request for information, the administering authority may, in making a determination under paragraph (2), use an inference that is adverse to the interests of that person in selecting from among the facts otherwise available to make the determination. If the administering authority makes a preliminary determination under paragraph (2)(A) that merchandise is covered merchandise that has entered into the customs territory of the United States by means of evasion, the administering authority shall instruct U.S. Customs and Border Protection— to suspend liquidation of each entry of the merchandise that— enters on or after the date of the preliminary determination; or enters before that date, if the liquidation of the entry is not final on that date; and to require the posting of a cash deposit for each entry of the merchandise in an amount determined pursuant to the order, or administrative review conducted under section 751, that applies to the merchandise. If the administering authority makes a final determination under paragraph (2)(B) that merchandise is covered merchandise that has entered into the customs territory of the United States by means of evasion, the administering authority shall instruct U.S. Customs and Border Protection— to assess duties on the merchandise in an amount determined pursuant to the order, or administrative review conducted under section 751, that applies to the merchandise; notwithstanding section 501, to reliquidate, in accordance with such order or administrative review, each entry of the merchandise that was liquidated and is determined to include covered merchandise; and to review and reassess the amount of bond or other security the importer is required to post for such merchandise entered on or after the date of the final determination to ensure the protection of revenue and compliance with the law. If the administering authority makes a final determination under paragraph (2)(B) that merchandise is covered merchandise that has entered into the customs territory of the United States by means of evasion, the administering authority may instruct U.S. Customs and Border Protection to require the importer of the merchandise to post a cash deposit or bond on such merchandise entered on or after the date of the final determination in an amount the administering authority determines in the final determination to be owed with respect to the merchandise. If the administering authority makes a final determination under paragraph (2)(B) that merchandise is not covered merchandise that has entered into the customs territory of the United States by means of evasion, the administering authority shall terminate the suspension of liquidation and refund any cash deposit imposed pursuant to paragraph
(6)with respect to the merchandise. Not later than 5 business days after making a determination under paragraph
(2)with respect to covered merchandise, the administering authority may provide to importers, in such manner as the administering authority determines appropriate, information discovered in the investigation that the administering authority determines will help educate importers with respect to importing merchandise into the customs territory of the United States in accordance with all applicable laws and regulations. If the administering authority is unable to determine the actual producer or exporter of the merchandise with respect to which the administering authority initiated an investigation under paragraph (1), the administering authority shall, in requiring the posting of a cash deposit under paragraph
(6)or assessing duties pursuant to paragraph (7)(A), impose the cash deposit or duties (as the case may be) in the highest amount applicable to any producer or exporter of the merchandise pursuant to any order, or any administrative review conducted under section 751. The administering authority shall publish in the Federal Register each notice of initiation of an investigation made under paragraph (1)(A), each preliminary determination made under paragraph (2)(A), and each final determination made under paragraph (2)(B). Notwithstanding section 777 and subject to subparagraph (C), when the administering authority makes an affirmative preliminary determination under paragraph (2)(A), the administering authority shall— transmit the administrative record to the Commissioner for such additional action as the Commissioner determines appropriate, including proceedings under section 592; and at the request of the head of another agency, transmit the administrative record to the head of that agency. Notwithstanding section 777 and subject to subparagraph (C), when the administering authority makes an affirmative final determination under paragraph (2)(B), the administering authority shall— transmit the complete administrative record to the Commissioner; and at the request of the head of another agency, transmit the complete administrative record to the head of that agency. In the event the Commissioner receives information that a person has entered covered merchandise into the customs territory of the United States through evasion, but is not able to determine whether the merchandise is in fact covered merchandise, the Commissioner shall— refer the matter to the administering authority for additional proceedings under subsection (b); and transmit to the administering authority— copies of the entry documents and information required by section 484(a)(1) relating to the merchandise; and any additional records or information that the Commissioner considers appropriate. Upon receiving a petition and upon initiating an investigation under subsection (b), the administering authority shall notify the Commissioner. Not later than 180 days after the date of the enactment of the Trade Facilitation and Trade Enforcement Act of 2015, the Commissioner and the administering authority shall establish procedures to ensure maximum cooperation and communication between U.S. Customs and Border Protection and the administering authority in order to quickly, efficiently, and accurately investigate allegations of evasion of antidumping and countervailing duty orders. Not later than February 28 of each year beginning in 2016, the Under Secretary for International Trade of the Department of Commerce shall submit to the Committee on Finance and the Committee on Appropriations of the Senate and the Committee on Ways and Means and the Committee on Appropriations of the House of Representatives a report on the efforts being taken under subsection
(b)to prevent evasion of antidumping and countervailing duty orders. Each report required by paragraph
(1)shall include, for the calendar year preceding the submission of the report— the number of investigations initiated pursuant to subsection (b); and a description of such investigations, including— the results of such investigations; and the amount of antidumping and countervailing duties collected as a result of such investigations; and the number of referrals made by the Commissioner pursuant to subsection (c). . The table of contents for title VII of the Tariff Act of 1930 is amended by inserting after the item relating to section 781 the following: Sec. 781A. Procedures for prevention of evasion of antidumping and countervailing duty orders. . Section 516A(a)(2) of the Tariff Act of 1930 ( 19 U.S.C. 1516a(a)(2) ) is amended— in subparagraph (A)(i)(I), by striking or
(viii)and inserting (viii), or
(ix); and in subparagraph (B), by inserting at the end the following: A determination by the administering authority under section 781A. . Not later than 180 days after the date of the enactment of this Act— the Secretary of Commerce shall prescribe such regulations as may be necessary to carry out subsection
(b)of section 781A of the Tariff Act of 1930 (as added by subsection
(a)of this section); and the Commissioner shall prescribe such regulations as may be necessary to carry out subsection
(c)of such section 781A. The amendments made by this section shall— take effect on the date that is 180 days after the date of the enactment of this Act; and apply with respect to merchandise entered on or after such date of enactment.
Connectionstraces to 2
Traces to 2 documents
Citation graph
cites case law
Sec. 421
Procedures for investigation of evasion of antidumping and countervailing duty orders
Cites 2Cited by 0 across 0 sources