According to the latest CBP Trade and Travel Report from U.S. Customs and Border Protection, the quantity of antidumping and countervailing duty (AD/CVD) orders that the agency has enforced has doubled over the past six years. This significant increase roughly aligns with the enactment of the Enforce and Protect Act (EAPA) in 2015. The EAPA has equipped U.S-based businesses with a powerful instrument to identify and report instances of transshipped goods within the U.S. marketplace.
The EAPA’s aim to protect U.S. businesses from unfair trading practices has seen its utilization rise in direct proportion with the increase in AD/CVD orders. However, this larger enforcement environment also has implications for entities importing goods into the United States. It underscores the heightened importance of maintaining compliance with EAPA regulations to avoid penalties.
In light of this, major stakeholders, including corporations and law firms involved in international trade, are advised to thoroughly familiarize themselves with the intricacies of EAPA and AD/CVD regulations. Additionally, employing proactive strategies to monitor supply chains and verify the origins of goods can help deter potential regulatory breaches.
For further details regarding EAPA-related enforcement actions including procedures for investigations and possible penalties, refer to: How to Avoid EAPA-Related Enforcement Actions by Husch Blackwell LLP.