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Replacing Enhanced Bonding Requirements

Effective April 1, 2009, CBP eliminated the enhanced bonding requirement on all shrimp imports in response to an unfavorable decision from the WTO on only two of the six countries subject to antidumping orders. CBP developed the enhanced bonding program, which required that parties importing shrimp subject to antidumping duties obtain a bond in the amount of duties expected to be paid on imports in the prior year, in response to a well-documented and persistent failure to collect all antidumping and countervailing duties-particularly on agriculture and aquaculture products. Even with the enhanced bonding requirement, CBP reported that it has been unable to collect nearly $68.9 million in antidumping duties on shrimp.
The SSA attempted to persuade CBP to institute a viable, WTO-consistent program for mitigating the harm of under-collection of antidumping duties before removing the enhanced bonding requirement. It filed comments with CBP requesting modification of the program instead of elimination. Senators Landrieu and Vitter sent a letter at the SSA’s request calling upon CBP to construct a bonding program that is consistent with U.S. WTO obligations, but ensures that the U.S. retains an insurance policy for enforcement. In response to the SSA’s criticism, CBP stated that it was “not abandoning its duty to protect revenue or its requirement of sufficient security.” The agency acknowledged that it is “required to collect debts aggressively” and explained that it “continues to explore options to protect revenue and address issues of uncollected AD/CV duties, consistent with U.S. international obligations.” The SSA continues to work with CBP and Congress to ensure that duties assessed on shrimp imports are collected.
https://shrimpalliance.com/Press%20Releases/2-11-09%20SSA%20Enhanced%20Bonding%20Comments.pdf

Supporting U.S. Trade Laws
4/20/10 Comments to Commerce on Retrospective vs. Prospective AD System,
3/11/09 Comments to the U.S. Trade Representative re Proposed Trans-Pacific Partnership Free Trade Agreement,
and found under Zeroing from https://shrimpalliance.com/administrative%20reviews.htm
8/2/07 Testimony before the Ways and Means Subcommittee on Trade in support of legislation to preserve the integrity of our nation’s trade remedy laws

 

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