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Entry summary rejected for unreported AD duties: how and when to respond

October 2024 examPractical ExerciseQuestion 19 of 80
Exhibit from CBP's October 2024 exam booklet, PDF page 9
Exhibit from CBP's published October 2024 exam (PDF page 9). Click to enlarge.

Echo experienced high demand in the U.S. for its paper products and could not manufacture quickly enough to meet its customers’ demands. Echo imported into Canada uncoated paper product like the paper manufactured by Echo from a manufacturer in Australia. Echo relabeled the boxes from the Australian manufacturer to show Echo’s information and exported the paper to the U.S. NBB filed the entry/entry summary as if Echo manufactured the paper. During a routine warehouse inspection, sixty (60) days after the date of import, a CBP Officer and a CBP Import Specialist see the country of origin marking of Australia and research the entry number. The Import Specialist rejects the entry type 01 consumption entry for failure to report and pay antidumping (AD) duties. The rejection puts the entry summary into Trade control status. How and when can NBB best respond on behalf of Echo?

How to get there

Echo relabeled Australian paper and entered it as Canadian-origin type 01. Australian uncoated paper is subject to AD case A-602-807 (facts, p. 9), so the entry was misdeclared. Once CBP rejects the summary, the clock is short:

The fix is to file what should have been filed in the first place: entry type 03 (antidumping/countervailing), country of origin Australia (relabeling in Canada doesn't change origin), the AD case number, and payment of the AD duties. The answer is B.

Why the other choices are wrong

A) Argue the rejection is untimely because the summary was paid: CBP can reject a paid, unliquidated entry summary, and the facts are plainly wrong. This invites liquidated damages.
C) Ask for a CF 29 rate advance and 20 more days: there's no such option. The rejected summary is due back within two working days.
D) A PSC at 300 days: a rejected entry summary is back in Trade control and must be corrected and returned promptly, not left for a PSC months later.
Tip
Rejected = 2 working days (or the rest of the 10-day window if rejected early, but at least 2). AD/CVD has its own rules in the BRPD. Relabeling or transshipment never changes origin, and AD/CVD follows origin.

Sources: CBP ACE Business Rules and Process Document §§ 1.4, 1.14 (CBP's key cites § 1.4); facts p. 9.

CBP answer key: Answer B · ACE BRPD, Chapter 1, Section 1.4Source: CBP past exams ↗