Approximately seven days after the final injury determination, the Commerce Department publishes an anti-dumping or countervailing duty order in the Federal Register. This notice is the official announcement of the size of the estimated margins, and sets forth the amount of the cash deposit for estimated duties that importers are expected to pay whenever they import the merchandise that has been under investigation. Customs will continue suspension of liquidation on prior entries, and maintain the bonds with respect to those entries. Any new entries will require a cash deposit rather than a bond. As discussed below, the actual duties owed are determined later during administrative reviews of the anti-dumping order.

 

At the same time as the order is published, the Commerce Department sends a message to the United States Customs Service, giving the specific instructions that Customs is to follow regarding importation of the merchandise. This message is sent to all ports, so that Customs officers can implement the new anti-dumping or countervailing duty order. Sometimes the message contains errors in the cash deposit rates or the description of the merchandise, so it is usually a good idea to obtain a copy of the actual message that has been sent so that errors can be discovered and corrected.

 

The anti-dumping or countervailing duty order is the stage at which the importer must begin paying cash deposits rather than just posting security. The cash flow burden on the company becomes much more severe — instead of paying as a premium on the bond a fraction of the estimated duties (usually approximately 1% of the total amount of the bond per year), the company must pay the entire amount. Even if the company eventually obtains a refund of the cash deposits in a Section 751 administrative review, the financial burden can be considerable.

 

Source: Business Guide to Trade Remedies in the United States: Anti-dumping, countervailing and safeguards legislation practices and procedures