Evasion of antidumping and countervailing (AD/CV) duties by unscrupulous importers is an enduring challenge for the U.S. government. Recent examination by government and private sector entities shows that AD/CV duty evasion may also be an intensifying problem, involving transshipment via third countries, misclassification under the tariff schedule, and other forms of fraud. AD/CV duty evasion deprives the U.S. Treasury of untold millions of dollars of revenue annually and undermines the relief afforded by U.S. trade remedy law to U.S. industries. Evasion should also, however, be of concern to law-abiding U.S. importers whose commercial position may be eroded by cheating importers. A number of bills pending in Congress would buttress the ability of U.S. government entities to combat AD/CV evasion through new powers and procedures. The authors argue that these bills represent a good start, but that meaningful progress in the fight against duty evasion can only come with intensified U.S. government pressure on its trading partners in established international fora and through cooperative mechanisms to fight evasion.
Global Trade and Customs Journal