As previously noted on this web site, there are many indicators that the United States is stepping up its efforts to combat circumvention of its antidumping, countervailing duty, and general customs laws. Such circumvention has been drawing unprecedented attention on Capitol Hill. As a result of the consequent political pressure, federal agencies have noticeably increased the number of active enforcement actions related to antidumping and countervailing duty orders.
Most recently, on August 12, 2011, the U.S. Department of Commerce reported the initiation on an investigation into whether Chinese drill pipe and tool joint manufacturer Hilong Group, Ltd. is evading a U.S. antidumping duty order by finishing its product assembly, via friction welding, in the United Arab Emirates, prior to shipping its products to the United States. The Department of Commerce will determine whether or not the involved Chinese-manufactured drill pipe and tool joint products are, for purposes of U.S. antidumping law, to be considered of Chinese origin, despite the fact that they are being friction welded together in the United Arab Emirates. Such products from China are currently subject to an antidumping duty rate of nearly 430 percent.
Firms involved in international trade face ever-growing risks for attempting to circumvent U.S. antidumping and countervailing duty laws. Such criminal activities invite the seizure of shipments, fines, indictment and imprisonment of U.S.-based personnel, and tremendous loss of money. To avoid such consequences, companies trading in goods subject to antidumping or countervailing duty investigations and orders can elect to participate in the involved antidumping investigation and administrative review proceedings of the U.S. Department of Commerce and U.S. International Trade Commission. In so doing, manufacturers and exporters may obtain company-specific or separate duty rates, thereby securing their access to the U.S. market, in full compliance with U.S. fair trade law.
