Reminder Notice - ADD/CVD Bond Underwriting Guidelines Have Been Updated
May 30, 2008
For some time, antidumping duty (ADD) and
countervailing duty (CVD) claims have been the most
significant cause of losses paid by surety companies.
While single transaction bonds (STBs) for pre-order
entries continue to contribute to the problem, higher
rate determinations at liquidation on post-order
entries also result in hefty losses for unpaid
supplemental duty claims under both single and
continuous bonds. This situation has been further
exacerbated by the proliferation of imports in recent
years from non-market economies such as China. It
is now not unusual to see ADD rates in excess of
100% by the time entries for such goods are
liquidated.
As a result, ADD/CVD bond underwriting guidelines have been updated in order to provide greater clarification on requirements. Please share this important information with all individuals in your organization who are involved in the bond process. Essentially all single and continuous bonds (for preliminary or post-order entries) are subject to approval, although there is a one time only limited exception defined for time-sensitive releases. We realize that many importers are not fully aware of the ADD/CVD exposures that they and their sureties face. Therefore, Roanoke Trade has prepared an overview on antidumping and countervailing duties as a resource that customs brokers may share with their importing clients. We hope you will find it helpful. Please contact Roanoke Trade if we may answer any questions or further assist. We appreciate your continued business and strive to contribute to the stability and long-term success of our clients.
Sincerely,
Roanoke Trade Services, Inc.
email:
marketing@roanoketrade.com
phone:
1-800-ROANOKE
|
