Customs and Border Protection (CBP) recently initiated a new effort to enforce and deter duty evasion on imports of steel products subject to antidumping (AD) and countervailing duty (CVD) orders. The new “live entry” procedures require the importer of record to provide necessary paperwork and pay duties before the imported merchandise is released into the U.S. market. The effect of these procedures will be to slow importation of merchandise for which the importer cannot satisfy the requirements. The procedures will also allow CBP to immediately identify potential issues or inconsistencies with the entry paperwork. The live entry procedures stand in contrast to the routine requirements that allow imports to be released into the U.S. market days before the importer is required to file paperwork and pay duties. CBP officials report that the live entry procedures are being applied already to cut-to-length steel plate from China. CBP may target additional steel shipments that are at a high risk for the evasion of AD/CVD duties based on information it obtains from the Department of Commerce or other sources.
CBP reports that in 2015 (FY), in conjunction with other government agencies, it seized over $900,000 worth of steel products that violated existing AD/CVD orders and assessed over $45 million in penalties in connection with these violations. The new live-entry procedures aim to strengthen CBP enforcement efforts for AD/CVD orders on steel products.
There are currently over 100 AD/CVD orders covering various steel products. CBP has stated its intention to continue to work closely with the steel industry in 2016 to enforce AD/CVD orders. One example is the AD/CVD seminars that CBP provides for members of the steel industry, and which Kelley Drye attorneys regularly participate in, to discuss the effects of trade policy on the steel industry. This year, CBP already held a seminar in Laredo, Texas (February 23-25), and intends to host additional seminars in New Orleans (April 12-14), Philadelphia (May 17-19), Long Beach, California (July 19-21), and Detroit (August 23-25).