May 10, 2019 | Industry Insights
Tomato Trade Law Update: Bonds Allowed for ADD In Lieu of Cash
On May 7, 2019, the U.S. Department of Commerce (DOC) posted a press release stating the following:
“During the negotiations, Commerce will continue with the investigation and instruct Customs and Border Protection (CBP) to collect cash deposits or bonds based on the preliminary determination by Commerce, which was issued in 1996. Any deposits collected will be refunded if a revised agreement is reached, or the U.S. International Trade Commission (ITC) determines there is no injury based on its own independent investigation.”
This modification in the trade law is significant because DOC has not allowed the use of single transaction bonds in lieu of cash for the preliminary Antidumping Duty (ADD) rate since 2011 when they abolished the use of bonds to secure the ADD due at entry.
Once an agreement is reached and a new suspension agreement is in place or if the U.S. International Trade Commission (ITC) finds no injury, any cash deposits collected will be refunded. If bonds are used to secure the ADD, the underlying entries should liquidate timely and with no ADD.
For additional information and bond requests, please contact your Roanoke bond customer service representative.