Enforcement Resources

The effective enforcement of unfair trade orders depends on close collaboration between the Departments of Homeland Security and Commerce to identify and investigate patterns of noncompliance, to work cooperatively to advance enforcement cases, as well as on partnerships between the agencies and private sector stakeholders who are critical to identifying unfair trading practices. 

What Is Evasion? 

Evasion is an illegal activity that refers to the importation of merchandise into the United States by an act or omission that is material and false, and which results in the correct duties being reduced or not applied to the merchandise. Examples of evasion include:

• Misrepresenting the true country of origin of the merchandise (e.g., through fraudulent country of origin markings on the product itself or false sales),
• Undervaluing the merchandise, or misrepresenting the actual manufacturer or exporter using false or incorrect documentation so as to pay lower amounts, or
• Misreporting the merchandise’s physical characteristics.

What Is Circumvention?

• Importing parts or components of a product and completing or assembling them in the United States;
• Completing or assembling a product in a third-country and claiming that the country of assembly is the product’s country of origin;
• Making minor alterations to a product; or
• Importing a later-developed product that includes physical characteristics or features that did not exist at the time of the original investigation.

Which U.S. Government Agencies Have Authority to Enforce AD/CVD Orders?

• Antidumping and Countervailing Duty Operations Unit: Conducts anti-circumvention inquiries when there is evidence that foreign producers/exporters are attempting to avoid the payment of AD/CVD duties. The anti-circumvention inquiries may be initiated in response to a petition from a domestic industry, or may be self-initiated by the Commerce Department. In addition, AD/CVD Operations conducts scope inquiries when a party is unsure whether a particular product should be subject to AD/CVDs. Scope inquiries are initiated in response to requests from U.S. importers, domestic industries, or U.S. Customs and Border Protection.
• Customs Liaison Unit (CLU): Serves as the liaison between Commerce and CBP on issues involving the suspension of entries and the collection and assessment of AD/CVDs. The CLU also maintains a call center where importers can seek clarification on cash deposit and assessment instructions to CBP. The CLU also serves as the bridge between Commerce, CBP, and other Department of Homeland Security agencies on matters related to fraud and evasion of AD/CVD orders and assists with the transfer of information between the two agencies.

• Investigate alleged evasions of AD/CVD orders made by domestic parties and report publicly on their findings. 
• Act on allegations within a set a timeline, with CBP required to initiate an investigation within 15 business days of receipt of a properly filed allegation from an interested party that reasonably suggests that merchandise covered by an existing AD/CVD order has entered into the United States through evasion. 
• Establish a new Trade Remedy Law Enforcement Division, which CBP did within the Office of Trade (OT), that is charged with overseeing the EAPA investigations. CBP also established an Evasion National Targeting Analysis Group (NTAG) to prevent and counter evasion, as well as assist in the EAPA investigations.
• Allow domestic parties to appeal a negative finding of evasion.

What Should I Do if I Suspect Evasion of AD/CVD Orders?