CBP Announces Withholding of Minimal Amounts of CDSOA Funds in FY2011

On Friday, U.S. Customs and Border Protection (CBP) issued a press release explaining that the agency anticipated withholding approximately $7.95 million in collected antidumping and countervailing duties from distributions made under the Continued Dumping and Subsidy Offset Act (CDSOA) for fiscal year 2011.  This recent announcement clarifies a prior CBP report, issued in June, indicating that potentially $18.23 million of $43.34 million in collected duties – equivalent to 42 percent of duties collected through April 30, 2011 – might be withheld from distribution due to recent changes in law.

CBP clarified that duties collected on merchandise entered into the United States prior to October 1, 2007, would not be distributed if, by December 8, 2010, such entries were not (1) liquidated, (2) in litigation, and (3) subject to liquidation instructions issued by the U.S. Department of Commerce. Per CBP’s announcement, these stringent conditions apply to a limited amount of entries of imported merchandise such that the agency anticipates withholding only 43 percent of the amount originally reported in June ($7.95 million compared to $18.23 million).

Since 2001, CBP has, on average, distributed a total of $250.11 million in CDSOA funds to trade-affected domestic industries.  The $7.95 million CBP anticipates withholding this year represents roughly 3 percent of the average annual distribution of CDSOA funds.

CBP’s press release indicated that CDSOA distributions for FY2011 would be processed by November 29, 2011.

As of April 30, 2011, CBP reported that $2.47 million in collected antidumping duties on shrimp imports were available for distribution.  Per the agency’s reporting at the conclusion of FY2010, $139.27 million in duty deposits on shrimp imports remained in clearing accounts potentially available for distribution.  Over the last three years, the total amount of duty deposits on shrimp imports has declined by $130.44 million (from $269.71 million at the end of FY2007), with only $39.49 million of that amount (30.3 percent) distributed to the domestic shrimp industry.  Accordingly, although there are likely to be significant distributions of CDSOA funds to domestic shrimp industry claimants this year, the total amount ultimately distributed is likely to be substantially below the amounts reported by CBP as potentially available for distribution in clearing accounts.

The full text of CBP’s press release may be accessed here:

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