This bill modifies procedures for investigating and reviewing claims of evasion related to antidumping and countervailing duty orders, allowing U.S. Customs and Border Protection to self-initiate investigations and setting a payment requirement for judicial review.
Mike Kelly
Representative
PA-16
This bill modifies the procedures for investigating claims that antidumping and countervailing duty orders are being evaded. It grants the Commissioner of U.S. Customs and Border Protection the authority to self-initiate evasion investigations based on reasonable suspicion. Furthermore, it requires parties found to have evaded duties to pay all associated duties before seeking judicial review of that determination.
Trade Enforcement Bill Gives Customs Power to Self-Initiate Investigations, Requires Upfront Payment to Appeal Evasion Fines
This legislation updates how the U.S. government investigates companies suspected of cheating on trade rules, specifically those avoiding antidumping and countervailing duties (AD/CVD). Essentially, it hands U.S. Customs and Border Protection (CBP) two major new tools: the power to start investigations on their own and a high financial barrier for importers who want to fight an evasion finding in court.
Giving Customs the Keys to the Investigation Car
Right now, if CBP suspects an importer is dodging AD/CVD duties—which are meant to protect U.S. industries from unfairly priced foreign goods—they usually need an outside party (like a competing U.S. manufacturer) to file an allegation. This bill changes that by amending Section 517(b)(1) of the Tariff Act of 1930. It gives the CBP Commissioner the authority to self-initiate an investigation if they have “information that reasonably suggests” evasion is happening.
Think of it like this: Before, CBP was mostly reactive, waiting for a complaint to open a file. Now, they can be proactive, using their own intelligence to spot suspicious activity, like a manufacturer suddenly moving production to a country without duties, or goods being mislabeled. This move is designed to boost enforcement and make it harder for bad actors to hide, which is a win for domestic industries that play by the rules.
The Cost of Fighting Back: Pay First, Appeal Later
The second major change is where things get complicated for importers. The bill amends Section 517(g)(1) to impose a strict prerequisite for judicial review. If CBP determines that an importer has evaded duties, that importer can only seek judicial review of that finding if they have paid all liquidated duties, charges, or exactions associated with the evasion before they file their appeal.
This is a massive shift. In the real world, trade evasion cases often involve millions of dollars in disputed duties. For a small or medium-sized importer, being hit with a multi-million dollar evasion fine and then being told they have to pay that entire sum upfront just to get a judge to look at their case is a huge financial hurdle. It effectively forces a company to pay a penalty that they believe is wrong, potentially bankrupting them, just for the chance to prove their innocence later. While this provision ensures the government collects its money quickly, it raises serious questions about due process and access to justice for companies that genuinely believe CBP made a mistake. It’s a high-stakes bet where the house is demanding payment before you can even check the cards.