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 EO states 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 (AD/CVD), when necessary to protect the revenue of the United States. The EO directs the Secretary of Homeland Security, in consultation with the Secretaries of the Treasury and Commerce and U.S. Trade Representative (USTR), to develop a plan within 90 days that would require covered importers that, based on a risk assessment conducted by CBP, pose a risk to the revenue of the United States, to provide security for antidumping and countervailing duty liability through bonds and other legal measures, and also would identify other appropriate enforcement measures.
The term “covered importer” means any importer of articles subject to AD/CVD for which one of the following is true: 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 AD/CVD; or CBP has a record of the importer’s failure to pay AD/CVD in a timely manner.
In addition, within 90 days, the Secretary of Homeland Security, through the Commissioner of CBP, is required to develop and implement 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.
Furthermore, the EO requires the Secretary of the Treasury and the Secretary of Homeland Security to take all appropriate steps, including rulemaking if necessary, to ensure that CBP can, consistent with law, share with intellectual rights holders:
- any information necessary to determine whether there has been an IPR infringement or violation; and
- any information regarding merchandise voluntarily abandoned, as defined in section 127.12 of title 19, Code of Federal Regulations, before seizure, if the Commissioner of CBP reasonably believes that the successful importation of the merchandise would have violated United States trade laws.
The EO also requires the Attorney General, in consultation with the Secretary of Homeland Security, 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.