Use of Single Transaction Bonds as Additional Security for Antidumping and Countervailing Concerns
On May 1, 2012 the Office of Trade (OT) issued a memorandum to provide guidance to the CBP field on how to protect the revenue when the port has developed a reasonable belief that acceptance of a transaction secured by a continuous bond would place the revenue in jeopardy because of Anti-dumping/Countervailing Duty (AD/CVD) concerns. This may be done through cash payment with live entry, or obtaining additional security in the form of a Single Transaction Bond (STB).
These guidelines provide for the appropriate use of the port's authority to require additional bonding in a uniform manner. Each import transaction will be judged on its own merits. Only on a case-by-case basis will the STB be required.
The guidelines address the following areas:
- Making determinations that there is a reasonable belief of possible revenue risk.
- STB use in conjunction with a continuing review or investigation risk pertaining to AD/CVD orders.
- How to determine the amount of the STB. The amount, in general, will be based on the value of the merchandise times the AD/CVD rate that would apply if the goods were subject to AD/CVD. Should that rate not be known, the highest AD/CVD rate for that commodity will be used. The amount of the continuous bond will always be considered before requiring the STB.
- Importers/brokers will be provided written notice of the STB requirement.
- The notice will include:
- The amount of the STB.
- The general reason why the STB is being required.
- When to discontinue the requirement of STBs and how to return the STB if no revenue risk is determined to exist.
- The STB requirement will be discontinued when the review is completed and compliance is determined.
- When the review concludes that there was no revenue risk, the STB will be returned.
- The importer will be given written notice when the requirement for the STB is discontinued.
- All of the ports will be made aware when one port requests an STB to address possible placement of the revenue in jeopardy involving AD/CVD so that it will be required uniformly at each port.