IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: No inception date

Anti-circumvention

On March 31, 2017 President Trump signed a “Presidential Executive Order on Establishing Enhanced Collection and Enforcement of Antidumping and Countervailing Duties and Violations of Trade and Customs Laws.” The order may lead to a requirement that new importers post bonds on certain transactions, thus increasing the cost of doing business and discouraging new entrants to the import trade. Declaring that billions of dollars in antidumping and countervailing duties are owed to the U.S. government remained uncollected, the president stated that it is “the policy of the United States to impose appropriate bonding requirements, based on risk assessments, on entries of articles subject to antidumping and countervailing duties, when necessary to protect the revenue of the United States.”

The order is aimed in particular at any importers of articles subject to antidumping or countervailing duties that meet one of the following criteria: U.S. Customs and Border Protection (CBP) has no record of previous imports by the importer; CBP has a record of the importer's failure to fully pay antidumping or countervailing duties; or CBP has a record of the importer's failure to pay antidumping or countervailing duties in a timely manner. The president ordered that within 90 days, the Secretary of Homeland Security and others shall develop a plan requiring that the targeted importers that “pose a risk to the revenue of the United States … provide security for antidumping and countervailing duty liability through bonds and other legal measures, and also would identify other appropriate enforcement measures.”

The foreign partners most affected by this order are those subject to the largest number of AD and CVD orders. Taken together, ten countries -- Brazil, China, India, Indonesia, Japan, Korea, Mexico, Taiwan, Turkey, and Vietnam -- account for 80% of all the trade-remedy orders in effect as of March 22, 2017.

The order also includes two other provisions. It calls for a “strategy and plan for combating violations of United States trade and customs laws for goods and for enabling interdiction and disposal, including through methods other than seizure, of inadmissible merchandise entering through any mode of transportation, to the extent authorized by law,” and requires that the Secretary of the Treasury and the Secretary of Homeland Security take all appropriate steps to ensure that CBP can share information with intellectual property rights holders “to determine whether there has been an IPR infringement or violation; and … any information regarding merchandise voluntarily abandoned … before seizure, if the Commissioner of CBP reasonably believes that the successful importation of the merchandise would have violated United States trade laws.” Furthermore, the Attorney General is to “develop recommended prosecution practices and allocate appropriate resources to ensure that Federal prosecutors accord a high priority to prosecuting significant offenses related to violations of trade laws.”

AFFECTED COUNTRIES

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