February 6, 2017

AD/CVD Updates from U.S. Customs and Border Protection (CBP)

Written by Lisa Gelsomino, Co-Chair for COAC AD/CVD Working Group

In recent discussions with CBP, we’ve been asked to advise the trade on some important Anti-Dumping and Countervailing Duty (AD/CVD) updates. With the new Harmonized Tariff Schedule (HTS) that went into effect on Jan. 1, 2017, many customs brokers were receiving error messages when trying to process AD/CVD entries if the HTS selected did not match with an AD/CVD case record in ACE. Back in June 2016, CBP issued CSMS# 16-000466 advising this validation was being relaxed so customs brokers could process AD/CVD entries for HTS classifications that were subject to the scope of an AD/CVD investigation even though the HTS was not linked to an AD/CVD case record in ACE.

The reason for this is that the scope of an AD/CVD investigation dictates what commodities are subject to AD/CVD duties; the HTS is provided for convenience only at the onset of an AD/CVD investigation. Other HTS codes can still fall within the scope of an AD/CVD case as it progresses through different stages of an investigation and goes through administrative proceedings each year. For example, consider AD/CVD cases like aluminum extrusions and wooden bedroom furniture that impact many HTS codes some of which are constantly changing based on scope rulings issued by the Department of Commerce (DOC).

CBP has advised that some ABI Software Vendors did not program for the HTS changes effective Jan. 1, 2017, that were impacted by the original CSMS# 16-000466. If you received an error message when trying to process an AD/CVD entry with an HTS code that was not linked to an AD/CVD case record in ACE, you should contact your ABI Software Vendor to ensure the functionality is working correctly.

If working correctly, you should receive an ACE informational message that states “HTS NOT FOUND ON ADCVD CASE; CONFIRM HTS.” This is just a reminder to ensure the HTS is within the scope of the AD/CVD case you have selected. Customs brokers can still proceed to file these entries if the scope of an AD/CVD investigation applies.

CBP has stressed that importers are still liable for AD/CVD duties even if not properly declared at time of entry. For customs brokers, it’s important to make sure your importer clients understand the impact of filing entries that are not accurately declared as AD/CVD at time of entry. If not, CBP may often reject the entry and/or ask for a Post Summary Correction. For further clarification on CBP’s policies, please review CSMS# 15-000743 on Post-Summary Correction where AD/CVD Duty is due.

CBP encourages the trade to review the following materials to help comply with AD/CVD entries and be fully aware of enforcement trends and the need to comply with this Priority Trade Issue: