Dumping caseFind a case involving dumping (or dumping accusations) within the last 10 years. Provide an overview of the case and tell me your thoughts on who was hurt or helped by the dumping. Shou

Import Regulations: the Customs Broker

The Customs broker is primarily the agent for the importer who employs him. He is frequently the importer's only point of contact with the U.S. Customs Service and advises on the technical requirements of importing, preparing and filing entry documents, obtaining the necessary bonds, depositing U.S. import duties, securing release of the goods and arranging delivery to the importer's premises or warehouse.

The broker often consults with Customs to determine the proper rate of duty or basis of appraisement, and on many occasions, if he is dissatisfied with either rate or value, he will pursue appropriate administrative remedies on behalf of his importer.

This video goes into a little more detail - with a very boring person doing the audio unfortunately.  Luckily it is short.

What is a Customs Broker? https://www.youtube.com/watch?v=oz8Bl6UYV2E

Import Regulations: Customs & Border Control

https://www.cbp.gov/trade

The CBP is the primary government agency responsible for import regulations. According to their website:  "U.S. Customs and Border Protection has direct responsibility for enhancing U.S. economic competitiveness. By reducing costs for industry and enforcing trade laws against counterfeit, unsafe, and fraudulently entered goods, CBP is working to enable legitimate trade, contribute to American economic prosperity, and protect against risks to public health and safety."

There are certain issues that have priority, these include the following:

1.  Antidumping and Counterveiling duties

2.  Import Safety

3.  Intellectual Property Rights

4.  Revenue

5.  Textiles

6.  Trade Agreements

We will look at each one of these in more detail this week and next week

Antidumping and Counterveiling duties

Antidumping and Countervailing duties essentially seek to remedy the same problem: artificially low priced imports. When a company cannot compete with imports because they are so cheap, and they are so cheap because they are being offered at "artificially" low price.  The root cause of the artificially low price is what differentiates antidumping and countervailing duties.

Anti-dumping duties are for combating “dumping”, which means that an exporter is setting prices at such a low point, that they are intentionally losing money in order to harm the domestic producers of the importing country. It is a predatory pricing model where the exporter prices its goods below production costs or below what they sell for in their home market.

Countervailing duties seek to counteract artificially low prices that are a result of subsidies. Governments often offer all sorts of subsidies on exports in the form of tax breaks and credits. Because of these subsidies, exporters are able to offer lower prices than domestic producers in the importing country. Countervailing duties level the playing field and negate the advantage that exporters get from subsidies.

Antidumping and countervailing duties go hand in hand. In fact, a petitioner can file both antidumping and countervailing duty petitions as a single document.

Filing of a petition

Interested parties can file on behalf of an industry by submitting a petition via a completed questionnaire or as text to the Dept. of Commerce and the Intl Trade Commission. A Draft petition can be shared with both agencies before the official petition is filed. The Dept. of Commerce and the Intl. Trade Commission welcome the opportunity to review the draft and share any deficiencies with the petitioner before they file.

A Petition contains and Introduction, Conclusion, and the following sections:

1. General Information

2. Description of Imported Goods, Exporters and Importers

3. Subsidy Information and Price Information

4. Critical Circumstances Information

5. Injury Information

Chronology of Events

Once the petition has been filed with the Dept of Commerce and the Intl Trade Commssion (on the same day), the investigation follows a five stage process. Each stage ends with a determination by either the Dept of Commerce or the Intl Trade Commission. If one of the agencies at any point in the process decides not to go forward, both agencies terminate proceedings. The five stages are:

1. Initiation of the investigation by Dept. of Commerce

2. The preliminary phase of the Intl. Trade Commission’s investigation

3. The preliminary phase of the Dept. of Commerce’s investigation

4. The final phase of Dept of Commerce’s investigation

5. The final phase of Intl. Trade Commission’s investigation

Import Safety

Making sure that unsafe products do not get into our country is one of the most important responsibilities of the CBP.    They accomplish this by using partnerships and collaborations with other U.S government agencies as well as foreign government agencies.   There are very specific import procedures that must be followed to ensure this safety.   In order to get a better understanding of this process, you will need to read the document below and watch the webinar - taking notes on the key issues.

1.  Read through a few links:

https://www.cbp.gov/trade/priority-issues/import-safety

https://www.cbp.gov/document/fact-sheets/import-safety 

and 

2.  Watch this webinar (taking notes along the way)

U.S. Customs and Your Imports https://www.youtube.com/watch?v=iY9MauYGjlE