New Policy on Reimbursement of Dumping Duties

Dec. 14, 2005

             Importers of goods subject to antidumping duties should take note that there has been a recent significant change in practice regarding reimbursement certificates.   Although the law has not changed, importers unacquainted with the change in practice could find themselves hit with double antidumping duties because they failed to file a reimbursement certificate prior to liquidation.  The Department of Commerce regulations require that the importer file a certificate advising whether the importer has entered into an agreement or otherwise received reimbursement of antidumping duties.  If an importer fails to provide reimbursement certificates (or acknowledges reimbursement), Customs and Border Protection presumes that the importer has been reimbursed for antidumping duties and doubles the antidumping duties due.  Since 1989, the importer has been required to file the reimbursement certificate prior to liquidation (19 CFR 351.402).  In practice, however, many ports have accepted protests claiming non-reimbursement, filed after liquidation of the entry, as sufficient proof that reimbursement has not occurred.  Those who filed such protests were not assessed the double antidumping duties.

             On November 18, 2005, a Memorandum on the subject of “Guidelines for Certificates of Reimbursement” was issued to the Directors of Field Operations from the Executive Director, Trade Enforcement and Facilitation Office of Field Operations.  This memo reiterated the requirement for Reimbursement Certificates to be filed prior to liquidation.  It instructs that any protest of an entry made on and after April 27, 1989, in which the protestant argues that a reimbursement certificate filed after the bulletin notice of liquidation was posted complies with the time period set out in 19 CFR 351.402 should be denied.  In order for a reimbursement certificate to be timely filed, it must be filed before liquidation of an entry, i.e. before the date that the bulletin notice of liquidation is posted in the Customhouse.  Protests in which the protestant disputes the assessment under 19 CFR 351.402 and which do not involve the timeliness of the reimbursement certificate will still be considered.

             The conclusion to be drawn from the Memorandum is that Customs has indicated to the ports that the practice of allowing importers to prove non-reimbursement by way of protest is no longer acceptable.  Accordingly, importers should take steps to ensure that they file the Certificate of Reimbursement before entries have liquidated.