Customs Law Advisory - New Shippers/Importers Now Required to Post Cash Deposit (Not Bond) in Antidumping and Countervailing Duty Reviews as Congress Temporarily Repeals New Shipper Bonding Privilege

This week, the President signed into law the Pension Protection Act of 2006 (H.R. 4) which included a temporary repeal of the new shipper bonding privilege for antidumping (AD) and countervailing (CVD) duties.  “New shippers” are foreign producers or exporters who did not export, and who are unaffiliated with any producer or exporter that did export, to the United States during the period examined in an AD/CVD investigation.  Before the temporary repeal, importers of products produced or exported by new shippers did not have to post cash deposits of AD/CVD duties.  Instead, during the pendency of the new shipper review, the importers were able to post a bond.  See 19 C.F.R. § 214(e) (2005).  The temporary repeal is effective from April 1, 2006 to June 30, 2009.  The law does not specify a procedure for importers to post cash deposits instead of posting bonds.  Thus, it is assumed that importers of products produced or exported by new shippers will have to post full cash deposits in the same manner as any other importer.

If you have any questions regarding this temporary repeal of the new shipper bonding privilege please contact Tom Trendl at +1-202-429-8055.