CBP Issues Notice of Intent to Distribute FY 2006 AD/CV Revenues to Affected Domestic Producers, Etc.

The Byrd Amendment provides that the assessed duties received pursuant to a CV duty or AD duty order will be distributed by CBP to affected domestic producers as an offset for certain qualifying expenditures. The Byrd Amendment only covers AD and CV duty assessments made on or after October 1, 2000 in connection with AD and CV duty orders in effect as of January 1, 1999 or issued thereafter. Although the Byrd Amendment has been repealed, certain of these collections and distributions will still occur (see below).

CBP's Notice Lists Eligible AD and CV Duty Orders

This notice lists the applicable AD and CV duty orders, along with their International Trade Administration (ITA) and International Trade Commission (ITC) case numbers, subject product and country, and the names of the affected domestic producers associated with each order that are potentially eligible to receive a distribution.² The document also provides the instructions for affected domestic producers to file written certifications to claim a distribution in relation to the listed orders.

CBP Also Posts Preliminary Amounts of Distribution for Each Order on Web Site

CBP has also posted to its web site a list of the FY 2006 preliminary dollar amounts subject to distribution that were contained in the Special Account for each listed AD/CV order. According to the notice posted to CBP's web site, these preliminary dollar amounts are the amounts available to disperse as of April 30, 2006.

CBP states that affected domestic producers may view these preliminary dollar amounts in order to determine whether it would be worthwhile to file a certification in a given case. CBP also notes that the final amounts available for disbursement may differ from the preliminary amounts.

Byrd Amendment Repealed, but AD/CV Duties Collected Before October 1, 2007 to Still be Distributed

CBP states that the Byrd Amendment (19 USC 1675c) was repealed by section 7601 of the Deficit Reduction Act of 2005. However, the effect of the repeal will be delayed for several years. Section 7601(b) states that duties collected on an entry filed before October 1, 2007, shall be distributed as if 19 USC 1675c had not been repealed.

Since the duty on an entry is not available for distribution until the entry is liquidated and collected pursuant to the direction of the Department of Commerce, the distribution process will continue until all entries made before October 1, 2007, are liquidated and the duties are collected. Because of the statutory constraints in the assessments of AD and CV duties, the distribution process will be continued for an undetermined period; however, the amount of money available for distribution can be expected to diminish after October 1, 2007.

CIT Rules U.S. Cannot Disburse AD and CV Duties on Canadian or Mexican Goods

According to CBP, the Court of International Trade (CIT) issued a decision in Canadian Lumber Trade Alliance v. United States on April 7, 2006, in which it determined that distributions to affected domestic producers of the continued dumping and subsidies offset are illegal, to the extent such offset distribution derives from duties assessed on goods from Canada or Mexico that are subject to an AD or CV duty order.

CBP states that they anticipate that the CIT will soon issue an injunction in this matter. The decision and any appeal therefrom may affect future distributions. CBP is reviewing its options in this regard and will notify the public through a future Federal Register notice concerning any decision to withhold potential FY 2006 distributions that derive from duties assessed on goods from Canada and Mexico that are subject to an AD or CV duty order.

¹ The full name is the Continued Dumping and Subsidy Offset Act of 2000

² The term "affected domestic producer" means any manufacturer, producer, farmer, rancher, or worker representative who remains in operation and was a petitioner or interested party in support of a petition with respect to which an AD or CV duty order has been entered.

(See ITT's Online Archives or 05/05/06 news, 06050505, for BP summary of the FY 2005 preliminary dollar amount list. See ITT's Online Archives or 02/10/06 news, 06021005, for BP summary of the bill to repeal the Byrd Amendment.)

- written certifications to obtain an offset under any listed order or finding are due by 07/31/06

CBP Notice (FR Pub 06/01/06) available at: http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/06-4937.pdf

CBP FY 2006 Preliminary Dollar Amounts available at http://www.cbp.gov/linkhandler/cgov/import/add_cvd/cont_dump/cdsoa_06/prelim_cdsoa.ctt/prelim_cdsoa.pdf