19 USC 1517 - Procedures for investigating claims of evasion of antidumping and countervailing duty orders

U.S Code last checked for updates: Feb 21, 2025

§ 1517.

Procedures for investigating claims of evasion of antidumping and countervailing duty orders

(a)

Definitions

In this section:

(1)

Administering authority

(2)

Commissioner

(3)

Covered merchandise

The term “covered merchandise” means merchandise that is subject to—

(A)

an antidumping duty order issued under section 1673e of this title; or

(B)

a countervailing duty order issued under section 1671e of this title.

(4)

Enter; entry

(5)

Evasion

(A)

In general

(B)

Exception for clerical error

(i)

In general

Except as provided in clause (ii), the term “evasion” does not include entering covered merchandise into the customs territory of the United States by means of—

(I)

a document or electronically transmitted data or information, written or oral statement, or act that is false as a result of a clerical error; or

(II)

an omission that results from a clerical error.

(ii)

Patterns of negligent conduct

(iii)

Electronic repetition of errors

(iv)

Rule of construction

(6)

Interested party

(A)

In general

The term “interested party” means—

(i)

a foreign manufacturer, producer, or exporter, or the United States importer, of covered merchandise or a trade or business association a majority of the members of which are producers, exporters, or importers of such merchandise;

(ii)

a manufacturer, producer, or wholesaler in the United States of a domestic like product;

(iii)

a certified union or recognized union or group of workers that is representative of an industry engaged in the manufacture, production, or wholesale in the United States of a domestic like product;

(iv)

a trade or business association a majority of the members of which manufacture, produce, or wholesale a domestic like product in the United States;

(v)

an association a majority of the members of which is composed of interested parties described in clause (ii), (iii), or (iv) with respect to a domestic like product; and

(vi)

if the covered merchandise is a processed agricultural product, as defined in section 1677(4)(E), a coalition or trade association that is representative of either—

(I)

processors;

(II)

processors and producers; or

(III)

processors and growers.

(B)

Domestic like product

(b)

Investigations

(1)

In general

(2)

Allegation described

An allegation described in this paragraph is an allegation that a person has entered covered merchandise into the customs territory of the United States through evasion that is—

(A)

filed with the Commissioner by an interested party; and

(B)

accompanied by information reasonably available to the party that filed the allegation.

(3)

Referral described

(4)

Consideration by administering authority

(A)

In general

If the Commissioner receives an allegation under paragraph (2) and is unable to determine whether the merchandise at issue is covered merchandise, the Commissioner shall—

(i)

refer the matter to the administering authority to determine whether the merchandise is covered merchandise pursuant to the authority of the administering authority under subtitle IV; and

(ii)

notify the party that filed the allegation, and any other interested party participating in the investigation, of the referral.

(B)

Determination; transmission to Commissioner

(C)

Stay of deadlines

(D)

Rule of construction

(5)

Consolidation of allegations and referrals

(A)

In general

(B)

Effect on timing requirements

(6)

Information-sharing to protect health and safety

(7)

Technical assistance and advice

(A)

In general

(B)

Eligible small business defined

(i)

In general

(ii)

Non-reviewability

(c)

Determinations

(1)

Determination of evasion

(A)

In general

(B)

Additional time

The Commissioner may extend the time to make a determination under subparagraph (A) by not more than 60 calendar days if the Commissioner determines that—

(i)

the investigation is extraordinarily complicated because of—

(I)

the number and complexity of the transactions to be investigated;

(II)

the novelty of the issues presented; or

(III)

the number of entities to be investigated; and

(ii)

additional time is necessary to make the determination under subparagraph (A).

(2)

Authority to collect and verify additional information

In making a determination under paragraph (1) with respect to covered merchandise, the Commissioner may collect such additional information as is necessary to make the determination through such methods as the Commissioner considers appropriate, including by—

(A)

issuing a questionnaire with respect to such covered merchandise to—

(i)

an interested party that filed an allegation under paragraph (2) of subsection (b) that resulted in the initiation of an investigation under paragraph (1) of that subsection with respect to such covered merchandise;

(ii)

a person alleged to have entered such covered merchandise into the customs territory of the United States through evasion;

(iii)

a person that is a foreign producer or exporter of such covered merchandise; or

(iv)

the government of a country from which such covered merchandise was exported; and

(B)

conducting verifications, including on-site verifications, of any relevant information.

(3)

Adverse inference

(A)

In general

(B)

Application

(C)

Adverse inference described

An adverse inference used under subparagraph (A) may include reliance on information derived from—

(i)

the allegation of evasion of the trade remedy laws, if any, submitted to U.S. Customs and Border Protection;

(ii)

a determination by the Commissioner in another investigation, proceeding, or other action regarding evasion of the unfair trade laws; or

(iii)

any other available information.

(4)

Notification

Not later than 5 business days after making a determination under paragraph (1) with respect to covered merchandise, the Commissioner—

(A)

shall provide to each interested party that filed an allegation under paragraph (2) of subsection (b) that resulted in the initiation of an investigation under paragraph (1) of that subsection with respect to such covered merchandise a notification of the determination and may, in addition, include an explanation of the basis for the determination; and

(B)

may provide to importers, in such manner as the Commissioner determines appropriate, information discovered in the investigation that the Commissioner determines will help educate importers with respect to importing merchandise into the customs territory of the United States in accordance with all applicable laws and regulations.

(d)

Effect of determinations

(1)

In general

If the Commissioner makes a determination under subsection (c) that covered merchandise was entered into the customs territory of the United States through evasion, the Commissioner shall—

(A)

(i)

suspend the liquidation of unliquidated entries of such covered merchandise that are subject to the determination and that enter on or after the date of the initiation of the investigation under subsection (b) with respect to such covered merchandise and on or before the date of the determination; or

(ii)

if the Commissioner has already suspended the liquidation of such entries pursuant to subsection (e)(1), continue to suspend the liquidation of such entries;

(B)

pursuant to the Commissioner’s authority under section 1504(b) of this title—

(i)

extend the period for liquidating unliquidated entries of such covered merchandise that are subject to the determination and that entered before the date of the initiation of the investigation; or

(ii)

if the Commissioner has already extended the period for liquidating such entries pursuant to subsection (e)(1), continue to extend the period for liquidating such entries;

(C)

notify the administering authority of the determination and request that the administering authority—

(i)

identify the applicable antidumping or countervailing duty assessment rates for entries described in subparagraphs (A) and (B); or

(ii)

if no such assessment rate for such an entry is available at the time, identify the applicable cash deposit rate to be applied to the entry, with the applicable antidumping or countervailing duty assessment rate to be provided as soon as that rate becomes available;

(D)

require the posting of cash deposits and assess duties on entries described in subparagraphs (A) and (B) in accordance with the instructions received from the administering authority under paragraph (2); and

(E)

take such additional enforcement measures as the Commissioner determines appropriate, such as—

(i)

initiating proceedings under section 1592 or 1595a of this title;

(ii)

implementing, in consultation with the relevant Federal agencies, rule sets or modifications to rule sets for identifying, particularly through the Automated Targeting System and the Automated Commercial Environment authorized under section 58c(f)(4) of this title, importers, other parties, and merchandise that may be associated with evasion;

(iii)

requiring, with respect to merchandise for which the importer has repeatedly provided incomplete or erroneous entry summary information in connection with determinations of evasion, the importer to deposit estimated duties at the time of entry; and

(iv)

referring the record in whole or in part to U.S. Immigration and Customs Enforcement for civil or criminal investigation.

(2)

Cooperation of administering authority

(A)

In general

(B)

Special rule for cases in which the producer or exporter is unknown

(e)

Interim measures

Not later than 90 calendar days after initiating an investigation under subsection (b) with respect to covered merchandise, the Commissioner shall decide based on the investigation if there is a reasonable suspicion that such covered merchandise was entered into the customs territory of the United States through evasion and, if the Commissioner decides there is such a reasonable suspicion, the Commissioner shall—

(1)

suspend the liquidation of each unliquidated entry of such covered merchandise that entered on or after the date of the initiation of the investigation;

(2)

pursuant to the Commissioner’s authority under section 1504(b) of this title, extend the period for liquidating each unliquidated entry of such covered merchandise that entered before the date of the initiation of the investigation; and

(3)

pursuant to the Commissioner’s authority under section 1623 of this title, take such additional measures as the Commissioner determines necessary to protect the revenue of the United States, including requiring a single transaction bond or additional security or the posting of a cash deposit with respect to such covered merchandise.

(f)

Administrative review

(1)

In general

(2)

Timeline for review

(g)

Judicial review

(1)

In general

(2)

Standard of review

In determining whether a determination under subsection (c) or review under subsection (f) is conducted in accordance with those subsections, the United States Court of International Trade shall examine—

(A)

whether the Commissioner fully complied with all procedures under subsections (c) and (f); and

(B)

whether any determination, finding, or conclusion is arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.

(3)

Rule of construction

(h)

Rule of construction with respect to other civil and criminal proceedings and investigations

(June 17, 1930, ch. 497, title IV, § 517, as added Pub. L. 114–125, title IV, § 421(a), Feb. 24, 2016, 130 Stat. 161.)

cite as: 19 USC 1517