About ANTI-CIRCUMVENTION

(ANTI-CIRCUMVENTION)

Anti-Circumvention of trade remedy duties refers to legal measures aimed at preventing actions that evade or bypass trade regulations, such as tariffs or trade protection measures. In the context of UFLPA, these measures are implemented to stop companies from deliberately concealing the origin of products from regions at risk of forced labor through tactics like mislabeling, transshipping goods through intermediary countries, or other deceptive practices. The goal is to ensure that trade regulations are upheld transparently and fairly.

Our Anti-Circumvention Consulting Services

  • DUE DILIGENCE AND RISK ASSESSMENT

    Provide detailed information about the product, including components and production processes.

  • COUNTRY OF ORIGIN DOCUMENTATION

    Verify the country of origin of the product, ensuring it does not come from regions associated with forced labor.

  • CUSTOMS DECLARATIONS

    Ensure that customs declarations are clear and compliant with trade regulations.

  • MANUFACTURING PROCESS INFORMATION

    Provide a clear explanation of how the product is manufactured, from raw materials to the final product.

  • Supplier and Distributor Agreements

    Document agreements with partners to ensure compliance with ethical standards and labor regulations.

  • Evidence of Final Use

    Provide evidence of where and how the product is ultimately used to ensure transparency in the supply chain.

  • Invoices and Shipping Records

    Maintain and provide invoices and shipping documents to verify the origin and transit route of the product.

How We Help Clients Implement Anti-Circumvention Strategies in the New Context

Detailed Analysis and Due Diligence

We assist clients in identifying and assessing potential risks in their supply chain to ensure products comply with anti-circumvention trade regulations.

We utilize advanced traceability technologies, such as blockchain, to track products from raw materials to completion, ensuring transparency and authenticity of origin.

We assist clients in collecting and maintaining critical documents such as certificates of origin, customs declarations, and shipping records to ensure there are no signs of circumvention.

We offer training programs for our clients' teams to deepen their understanding of regulations and anti-circumvention practices, enabling them to comply with international laws effectively.

We help clients develop strategies to diversify suppliers and distribution channels, minimizing risks from regions with a high likelihood of trade regulation violations.

Conduct third-party audits to ensure that all processes, from suppliers to distributors, comply with regulations and that no circumvention activities occur.

Industries We Can Support with Legal Assistance on Anti-Circumvention of Trade Remedy Duties

We can provide legal support on anti-circumvention of trade remedy duties (TRD) for various industries, especially those with complex supply chains and susceptibility to trade remedy measures. Below are some key industries we can assist:

Textile and garment Industry

The textile and garment industry often faces trade barriers related to product origin, especially in countries with a high risk of forced labor. We provide support to ensure compliance with origin regulations and Anti-Circumvention trade remedy measures.

Footwear manufacturing Industry

Exported footwear products are often scrutinized for origin and supply chain compliance. We assist businesses in developing processes to ensure their products do not violate Anti-Circumvention regulations.

Electronics and Electronic Components Industry

For imported technology products and electronic components, particularly from countries like China, we assist in ensuring transparent product origins and compliance with Anti-Circumvention trade remedy regulations.

Solar Energy Industry

The solar energy industry, especially solar panels and polysilicon, faces trade remedy duty risks, particularly from China. We assist businesses in complying with Anti-Circumvention measures by ensuring transparency in their supply chains.

Iron, Steel, and Metal Industry

This is one of the industries most affected by trade remedy measures globally. We assist businesses in complying with origin regulations, helping them avoid Anti-Circumvention duties when exporting steel or metal products.

Wood Products and Furniture Manufacturing Industry

The wood furniture industry, particularly products made from wood originating in China or high-risk regions, often faces trade remedy measures. We assist in ensuring compliance with origin regulations and supply chain transparency.

Chemical and Industrial Materials Industry

Chemical products and industrial raw materials often have complex supply chains, making them susceptible to trade remedy measures. We provide legal solutions to ensure compliance and adherence to Anti-Circumvention regulations.

Agricultural and Food Industry

For agricultural and food products, especially those exported to demanding markets like the U.S. and EU, we provide support to ensure compliance with Anti-Circumvention trade remedy duties, particularly in matters related to origin and product standards.

Plastics and Plastic Products Industry

The plastics industry and related products often face Anti-Circumvention duty regulations, especially amid increasing competition in international markets. We assist businesses in adhering to legal requirements and avoiding trade remedy measures.

Construction and Building Materials Industry

Construction materials such as cement, glass, and tiles are often subject to origin verification and at risk of being impacted by trade remedy measures. We assist businesses in complying with trade remedy duty regulations and avoiding tax circumvention.

Case Study about Anti-Circumvention

Overview

A steel manufacturing company in Vietnam exports its products to the United States. However, after some time, U.S. Customs and Border Protection (CBP) notifies the company that its shipment of steel is under investigation for suspected anti-dumping duty circumvention. CBP suspects that the company may be using steel materials from China (which is subject to high anti-dumping duties in the U.S.) and "transshipping" them through Vietnam to avoid the duties.

Issue

The company is accused of potentially circumventing anti-dumping duties (ADD) by importing steel materials from China, performing minor processing or modifications in Vietnam, and then exporting the products to the U.S. labeled as "Made in Vietnam." If found in violation, the company could face additional duties and an import ban on its goods.

Settlement Steps

Step 1

Verify the origin of materials

The company promptly gathered documentation on the procurement of materials, including contracts and invoices for steel purchased from suppliers in Vietnam and other countries not subject to Anti-Dumping duties, to demonstrate that the materials did not originate from China.

Step 2

Transparent supply chain

The company provided comprehensive documentation of its supply chain, including the production and processing procedures in Vietnam, to demonstrate that the steel products were entirely manufactured and fabricated in Vietnam, rather than being "transshipped" to evade duties.

Step 3

Third-party audits and reports

To enhance credibility, the company hired an independent auditing organization to inspect and verify the production process and the origin of materials. This audit report was submitted to CBP as part of the transparency evidence.

Step 4

Responding to CBP

The company submitted all required documents and reports, explaining the production process from raw materials to the final product, along with evidence proving that the products did not violate Anti-Circumvention trade remedy regulations.

Result

After reviewing the evidence and documentation provided by the company, CBP concluded that there was no evidence of anti-dumping duty circumvention. The company’s shipment was cleared and allowed to continue exporting to the United States without additional duties.

Learning

Transparent supply chain

Maintaining a transparent and traceable supply chain is crucial to avoiding accusations of duty circumvention. Businesses must carefully retain all documentation related to the origin of materials and production processes.

Independent Audit

Utilizing third-party audits enhances a business's credibility in providing evidence of transparency and compliance with trade remedy regulations.

Respond quickly and completely

When facing an investigation, responding promptly and providing complete, accurate information is crucial to demonstrating that the business is not in violation of anti-circumvention regulations.

Conclusion

Anti-circumvention measures for trade remedy duties play a critical role in protecting the market from unfair competition. Businesses must ensure transparency in their supply chains and be prepared to provide complete documentation to demonstrate the legality of their operations. This helps avoid trade remedy actions and import bans.

Meet the Experts in Anti-Circumvention

Meet our team of experts in Anti-Circumvention of Trade Remedy Duties (TRD) – seasoned professionals with extensive experience in helping businesses comply with international trade regulations. With in-depth knowledge of anti-dumping and countervailing measures, we are ready to assist you in safeguarding your interests against unfair competition and ensuring transparency in your supply chain.