The Executive Order signed on March 31, 2017, promotes the efficient and effective administration of U.S. customs and trade laws by establishing enhanced measures to collect duties and a heightened enforcement posture for addressing trade violations that threaten the safety and economic security of the United States.
The United States must ensure a level playing field for U.S. industries and to protect against unfair competition and practices from foreign governments when importing goods. To do this, the United States imposes additional duties, called antidumping and countervailing duties (AD/CVD), determined by the U.S. Department of Commerce (Commerce), on certain imported goods to offset unfair low prices and foreign government subsidies. The United States also imposes appropriate bonding requirements on entries of articles subject to AD/CVD when necessary to protect the revenue of the United States. However, the evasion of AD/CVD on imports into the United States and other trade violations may cause U.S. industries to suffer from unfair import competition and deprive the U.S. government of revenue.
In Fiscal Year (FY) 2016, $14 billion of imported goods were subject to AD/CVD, and U.S. Customs and Border Protection (CBP) collected $1.5 billion in AD/CVD cash deposits. CBP’s collection of AD/CVD cash deposits increased over 25 percent since FY 2015 and by almost 200 percent since FY 2014. As of the end of FY 2016, $2.8 billion of AD/CVD duties were owed to the U.S. government for imports going back to 2001.
The executive order aligns with CBP’s operational approach to combating U.S. trade violations by detecting, deterring, and disrupting illicit trade practices, and by enhancing U.S. economic competitiveness and security.
Authorities
The Tariff Act of 1930, as amended, 19 U.S.C. 1202 et seq., and the Trade Facilitation and Trade Enforcement Act of 2015, 19 U.S.C. 4301 et seq., promote the efficient and effective administration of the United States’ international trade laws.
Actions
CBP is leading the Department’s efforts to implement the provisions set forth in the Executive Order, in consultation with Secretary of the Treasury, the Secretary of Commerce, and the United States Trade Representative.
CBP is currently reviewing the specific requests outlined in the Executive Order, and developing the plans requested. Within 90 days, CBP will develop implementation plans to provide security for AD/CVD liability through bonds. In addition, within 90 days, CBP will develop a strategy and implementation plan for enabling the interdiction and disposal of violative goods, with the ability to share information regarding merchandise voluntarily abandoned with intellectual property rights holders.
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