The Quest
Inside this issue:

Honey syrup update: DOC affirms preliminary determination on anti-dumping order

CBP releases new 301 bond form instructions

CBP conducts summer webinar series on modernizing customs broker regulations

AD/CVD now issued for solar cells and panels from China

CBP releases list of current AD/CVD cases (click to download)



Honey syrup update: DOC affirms preliminary determination on anti-dumping order

Further to our November 2011 Special Quest regarding ďhoney launderingĒ and continued anti-dumping duty and transshipment risks involved with this commodity, Avalon has received an update on honey imports.

The U.S. Department of Commerce (DOC) has now issued a preliminary determination in its anti-circumvention investigation on whether honey mixed with rice syrup is subject to the anti-dumping duty order currently on honey from China. In its determination, Commerce finds that honey mixed with rice syrup (regardless of the amount of honey) is subject to the order.

As a result, the DOC is directing CBP to suspend liquidation and require a cash deposit of the estimated duties on all unliquidated entries of all honey and rice syrup blends imported on or after Dec. 7, 2011. Because this order is retroactive, bond claims can result from unpaid anti-dumping duties.

Merchandise subject to the order is currently classifiable under HTSUS subheadings:
0409.00.00 0409.00.0010 0409.00.0035
0409.00.0005 0409.00.0045 0409.00.0056
0409.00.0065 1702.90.90 2106.90.99

These subheadings are provided for convenience and Customs purposes only, the DOCís written description of the merchandise under this order is dispositive and shall prevail.

If you are working with importers who enter blends of honey and rice syrup, they have 30 days from June 21, 2012 to file a case brief and request a hearing or participation in the investigation. Companies that do not participate lose their ability to challenge DOCís findings in the Court of International Trade.

To view further details and read the DOCís announcement in the Federal Register, please visit http://www.gpo.gov/fdsys/pkg/FR-2012-06-21/pdf/2012-15219.pdf.

In 2001, the DOC conducted an initial investigation and determined that honey from China was being sold in the United States at substantially low prices and imposed stiff anti-dumping duties. Blends of honey and rice syrup were not contemplated in this investigation because it was not commercially available at the time. For the period of review from June 2004 through October 2005, the all-others rate on honey from China was 181%, and in 2006 the all-others rate increased to 212%. In 2009, the rate became $2.63 per kilogram after rates were changed from percentages.

Bond Requests
Bonds for this commodity will be subject to higher AD/CVD rates and underwriting requirements, which will include the following, if not already on file with Avalon:
  • Bond Application and Indemnity Agreement signed by a corporate officer.
  • AD/CVD questionnaire with details on the case number, supplier, and information to substantiate origin including lab test results from CBP as necessary.
  • Historical information regarding the importerís entry activity and any background on the customs brokerís relationship with the importer.
  • Information regarding the origin of the honey, such as the name of honey producer, invoices from beekeepers, etc.
  • Any information available regarding FDA approval of the honey, such as lab tests.
  • Financial statements including Balance Sheet, Income Statement, and Statement of Cash Flows.
  • Collateral will likely be required for high-risk AD/CVD cases, especially if the importer cannot demonstrate financial strength to support the total bond aggregation.
We understand high risk anti-dumping cases of this nature place an increased burden on both sureties and brokers. Through proactive education, we can work together to mitigate risk and support compliance.

For more information, please contact your local Avalon office or Andriana Davis at (847) 700-8087 or at adavis@avalonrisk.com. A list of our offices may be found at www.avalonrisk.com.

Avalon Risk Management


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