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Compendium of Antidumping and Countervailing Duty Laws in the Western Hemisphere


  1. Application and Collection of Duties

    1. Use of Bonds or Cash Deposits


      a. Antidumping

      WTO Standard: Provisional measures may take the form of a provisional duty or, preferably, a security - by cash deposit or bond - equal to the amount of the anti-dumping duty provisionally estimated, being not greater than the provisionally estimated margin of dumping. (AD Agreement, Art. 7.2)

      b. Countervail

      WTO Standard: Provisional measures may take the form of provisional countervailing duties guaranteed by cash deposits or bonds equal to the amount of the provisionally calculated amount of subsidization. (SCM Agreement, Art. 17.2)

Argentina | Bolivia | Brazil | Canada | Chile | Colombia | Costa Rica | Dominican Republic | Ecuador | El Salvador | Guatemala | Honduras | Jamaica | Mexico | Nicaragua | Panama | Paraguay | Peru | Saint Lucia | Trinidad & Tobago | United States | Uruguay | Venezuela

 


Argentina

   The standards of the WTO Agreements are directly applied.

Bolivia

   Provisional duties may be paid in cash or covered by a security in conformity with the legal provisions relating to the lodging of security for the payment of customs duties. Bi-ministerial Decision, Art. 38.

Brazil

   Provisional duties may be paid by means of a guarantee, either in the form of a cash deposit or a bank note. Art. 34-3; Art. 44-2.

Canada

   After a preliminary determination of dumping or subsidizing is made, any provisional duty owing may be recovered by payment in cash or by posting of security.

   If security is being used, it should be posted prior to or at the time of accounting of the importation during the provisional period.

   Security must be in the form of bonds issued by a financial institution or acceptable bonding company approved by the Government of Canada.

   The bond is filed with the Customs Region having jurisdiction over the point of release of the goods.

   Security is returned to the Surety if the Deputy Minister of National Revenue terminates the investigation or the Canadian International Trade Tribunal finds that injury has not occurred as a result of the dumping or subsidizing.

   A significant feature of the SIMA's new expedited review provisions for new exporters is the requirement to accept security in lieu of SIMA duty from the importers while this type of review is underway.

Chile

   Article 24 of Decree 575 provides that persons affected by provisional measures which are definitively repealed or modified, may apply for a refund for the amount paid or the excess amount paid under the respective measures in cases where the Commission issues a negative final determination of dumping/subsidies and injury, or where the final antidumping or countervailing duty is lower than the provisional duty imposed.

   It appears that, under Chilean law, cash deposits must be paid for provisional measures, since there is no mention of the ability to post a bond or other security for payment of provisional measures.

Colombia

   In the cases in which provisional antidumping actions are taken, the importers, on presenting their declaration of imports, may opt to pay the respective duties or to establish a security interest in the Bureau of National Taxes and Customs (DIAN) to guarantee their payment.

    The security interest shall be established for the time period indicated in the order adopting the duty and pursuant to the relevant customs regulations.

Costa Rica

   a. Anti-dumping Provisional measures may take the form of a provisional duty or, preferably, a security- by cash deposit or bond- equal to the amount of the anti-dumping duty provisionally estimated, being not greater than the provisionally estimated margin of dumping.

   Withholding of appraisement is an appropriate provisional measure, provided that the normal duty and the estimated amount of the anti-dumping duty be indicated and as long as the withholding of appraisement is subject to the same conditions as other provisional measures.

   b. Countervailing duties Provisional measures may take the form of provisional countervailing duties guaranteed by cash deposits or bonds equal to the amount of the provisionally calculated amount of subsidization.

   A Costa Rican decree adds the following: The amount of any anti-dumping or countervailing duty applied shall be sufficient to redress the injury or harm and never more than the estimated margin of dumping or the amount of the subsidy.

   If the definitive anti-dumping or countervailing duty is greater than the amount guaranteed, the difference shall not be required.

   If it is less, immediate repayment of the excess will be ordered.

Dominican Republic

Ecuador

   In the case of dumping, the provisional measures may take the form of a provisional duty or a security by cash deposit or bond equal to the amount of the anti-dumping duty provisionally estimated.

   In the case of subsidies, the provisional measures may take the form of provisional countervailing duties guaranteed by cash deposits or bonds equal to the amount of the provisionally calculated amount of subsidization. Duty shall be paid on imports of the products subject to investigation, irrespective of the importer. The payment of provisional duties may be replaced by a bond or security posted in the form and subject to the conditions laid down in the customs legislation.

El Salvador

   There is no specific provision but El Salvador applies the provisions of the WTO Antidumping Agreement and the Subsidies and Countervailing Measures Agreement.

Guatemala

Honduras

Jamaica

   Where provisional duties are imposed in respect of any goods, the importer of those goods shall, at his option post or cause to be posed security in a prescribed form and in an amount or to a value not greater than the estimated margin or estimated amount of subsidy on those goods.

Mexico

   Article 65 of the Law indicates that the Secretariat of the Treasury and Public Credit may accept the security furnished in accordance with the Fiscal Code of the Federation in matters of temporary countervailing duties. Article 141 of the Fiscal Code indicates what kinds of fiscal security may be applied:

         1. Cash deposits in credit institutions authorized for such purpose, which may generate interest, which may be withdrawn;

         2. Collateral or mortgages;

         3. Financing by an authorized institution, which shall not enjoy benefits of order and discussion;

         4. Joint and several obligations assumed by a third party who shows suitability and solvency;

         5. Attachment through official channels;

   Security remains in effect until its release is admissible and must be furnished in favor of the Treasury of the Federation.

   The forms of security may be combined and may also be replaced one for another, in which case, before releasing the original security, the replacement must be furnished, when the one whose replacement is intended is not callable. The Law and its Regulations govern the reasons for collecting or releasing the security furnished under the procedure against unfair international trade practices.

   In accordance with Article 70 of the Regulations of the Fiscal Code, the security may be released in the following cases:

         1. By replacement of security;

         2. When the decision that gave rise to the granting of the security is definitely null and void;

         3. In any other instance where it should be released in accordance with the fiscal provisions.

Nicaragua

Panama

Paraguay

   In these cases, and as long as it has been determined on a preliminary basis that provisional measures should be imposed, the bond or guarantee will be executed when appropriate.

Peru

   Where the definitive duties are higher than the provisional duties paid or guaranteed, the amount in excess shall not be payable, except in the case referred to in the following Article of these Regulations.

    In the contrary case, the difference shall be refunded. Where definitive duties are not established, the entire amount paid shall be refunded and the security given to cover the amount of the provisional duties imposed shall be refunded or released. The anti-dumping and countervailing duties referred to in these Regulations are paid on the invoiced f.o.b. value, in accordance with the rules of the General Customs Law on the payment of import duties. Provisional duties shall be paid or guaranteed by means of irrevocable, binding, unconditional and immediately cashable security issued by a banking or financial entity or by guarantee funds, expressed in United States dollars, pursuant to the rules of the aforementioned General Customs Law. Under no circumstances may the import of the goods for consumption be hindered by the investigation taking place and no authority may hinder their entry for consumption.

   The Commission may, at the request of one of the parties, fix the administrative, procedural and other costs to be paid by the plaintiff to the importers and/or exporters if the application has been rejected.

Santa Lucia

Trinidad and Tobago

   Any security may, as required by the Comptroller, be by bond with sureties of guarantee, or by a deposit of cash, or by all or any of these methods, to the satisfaction of the Comptroller. (Sec. 31(2)).

United States

   In the case of an affirmative Commerce preliminary determination, Commerce instructs Customs to require the payment of a cash deposit or posting of bond for each entry of the merchandise in an amount equal to the estimated margin of dumping or the amount of the net countervailable subsidy.

   If the final determination is affirmative, Commerce instructs Customs to require a cash deposit or bond in the amount of the final dumping margin or subsidy rate.

   If the ITC makes an affirmative final injury determination, Commerce will issue an AD or CVD order and will instruct the U.S. Customs Service to require cash deposits (i.e., no bonds) on all entries of the subject merchandise.

Uruguay

   The provisional measures shall take the form of a provisional duty or, preferably, a security consisting of a cash deposit in the Banco de la Republica Oriental del Uruguay or in the Banco Hipotecario del Uruguay, at the discretion of the depositor, in the joint name of the latter and the Ministry of Economy and Finance, or of a bank guarantee in favour of the aforementioned Ministry, for a sum equal to the amount of the anti-dumping duty provisionally assessed.

Venezuela

   The Customs Service shall be responsible for collecting provisional and definitive anti-dumping or countervailing duties and for the definitive collection of provisional duties.

   Provisional duties may be paid in cash or guaranteed by a security from a bank or insurance company, to the satisfaction of the customs authorities.

   If they are paid in cash, the amount in question shall be kept in a special account until the Commission decides on its definitive collection or its refund. (1992 Law, Art. 54; see also Art. 61).

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