There are certain instances when the Department of Commerce issues an AD or CVD Order which covers only a portion of an imported product. This may require that a value different from the regular appraised value should be used to calculate the AD/CVD duty on an entry line covered by an AD or CVD Order. Examples include articles such as glass refrigerator shelf subassemblies that contain aluminum extrusion components, attached by welding to the subassemblies, where only the aluminum extrusion components are subject to AD/CVD; and wooden cabinets or bathroom vanities, imported attached to, or in conjunction with, faucets, metal plumbing, sinks and/or sink bowls, or countertops, where only the wooden cabinet or vanity is covered by the scope. In these situations the imported articles are integrated entities reportable as a single product for classification purposes.

These instances are distinguished from those where a shipment contains multiple goods that are covered by a single HTSUS number, but only a portion of those goods are subject to AD/CVD. For example, a shipment of Italian pasta consisting of separate boxes of organic and non-organic pasta, where only the non-organic pasta is subject to AD/CVD, would be separately quantified and entered on two separate tariff lines, with a separate value for each. Similarly, the Order on malleable cast iron pipe fittings from China excludes certain metal compression fittings which are classified in the same 10 digit heading as other fittings subject to the Order; if imported on the same shipment as other fittings covered by the Order the compression fittings should be entered on a separate entry line.

When an integrated line item is only partially subject to AD/CVD duties, the merchandise is reported as an entirety on an entry line, with the full value of the merchandise. The quantity and value of the portion subject to AD/CVD is reported using the special value fields in the AD/CVD 53-record, positions 25-34 (value) and 35-46 (quantity). This portion will be used to calculate the AD/CVD duty amount.

Valuing the portion subject to AD/CVD is to be accomplished by a reasonable method given the specific facts of the merchandise at issue. While no formal guidance exists, this may be considered similar to determining the separate value required for privileged foreign merchandise entered into an FTZ, for which some useful rulings and resources may exist. Importers also have the option of requesting a ruling from CBP on how to value the portion subject to AD/CVD.

Separate value reporting for AD/CVD may also be necessary for certain sets where only one or more component of the set is covered by an Order. For example, certain steel nails included in a tool or fastener set are excluded from the Order if less than 25 units are included, but are subject to the Order for quantities of nails (of all covered types) of 25 or greater. Another example is a set consisting of wooden and glass votive holders packaged together with tea-light candles. Only the value of the nails or the candles would be subject to AD/CVD duties. The portion of the value subject to AD/CVD would be reported using the reporting requirements in the “CBP Form 7501 Instructions” for paper entries, or the ACE ABI CATAIR for “Entry Summary Create/Update”. The set itself would be classified using General Rule of Interpretation (GRI) 3(b) or 3(c).

This information was provided in part by Alex Amdur, Director, AD/CVD Policy and Programs Division, Office of Trade at CBP to the Customs Committee of the Customs and International Trade Bar Association in January 2023.