In the US, the duty you pay at entry is a deposit, not a final bill. Commerce reviews the rate afterward, and the final rate at liquidation can be higher or lower than what you deposited, with interest on the difference.
The deposit is an estimate, not a price
The United States is one of the few countries that runs a retrospective antidumping and countervailing duty system. When a product is subject to an AD or CVD order, the importer pays a cash deposit at entry based on the rate Commerce set in the investigation or the most recent review. That deposit is an estimate. The final duty is set later, when Commerce reviews the actual sales during a review period, and the entry liquidates at the final rate.
The gap between deposit and final rate is where the money sits. A deposit of 12 percent that liquidates at 30 percent leaves an 18 percent bill, plus interest, on goods that may already have been sold. A deposit of 40 percent that liquidates at 8 percent leaves a refund. The importer cannot know which way it goes at the time of entry, and the review period is usually a full year, so the final number can arrive long after the goods are gone.
Rates in this system can be extreme. AD and CVD rates routinely reach 50, 100, or 200 percent and higher, because the rate is built from the margin of dumping Commerce finds in the data, not from a policy cap. An importer who treats the deposit rate as the cost of the product is pricing on a guess.
How the review sets the final rate
Commerce runs administrative reviews, usually annually, for each AD or CVD order. Interested parties can request a review of a specific exporter. Commerce then examines that exporter's sales during the review period, compares the export price to the normal value in the home market, and calculates a dumping margin. That margin becomes the final rate for entries from that exporter during the period.
The review rate applies to the exporter, not to the product generally. Two exporters of the same product can have different final rates, and an exporter that was not reviewed keeps the rate from the last review or the investigation. That is why the identity of the exporter matters as much as the product. Buying the same goods from a different factory can change the duty by tens of points.
While a review is pending, CBP suspends liquidation of the entries in the period. Suspension does not mean the duty is not owed. It means CBP cannot finalize the entry until Commerce publishes the final rate. The deposit sits with CBP in the meantime, and the importer waits, sometimes for years, for the final bill.
What the bill looks like at liquidation
When the final rate comes in higher than the deposit, CBP bills the difference plus interest from the date of entry. When it comes in lower, CBP refunds the difference plus interest. The interest rate is set by law and it runs from entry, so a two-year delay on a large entry is not a small number. Importers who sell goods on thin margins and forget the review is pending can find that a profitable shipment was not profitable at all.
The practical defense is to track every AD and CVD order on your products and know the review calendar for each one. When a review is requested for your exporter, note the period and the expected publication date. When the final rate publishes, check it against your deposits before CBP sends the bill, and set the cash aside. A final rate that doubles your duty is a manageable event if you saw it coming and a crisis if you did not.
EAPA: the evasion track that runs alongside
Separate from the review system, CBP runs the Enforce and Protect Act process, EAPA, under 19 USC 1517. EAPA investigates allegations that importers evaded AD or CVD duties by transshipping goods through a third country, misclassifying them, or understating value. An EAPA case can result in additional duties, penalties, and a referral for criminal investigation, and it can run at the same time as a normal administrative review.
The difference matters for importers. A review asks what the right rate is. An EAPA case asks whether you tried to avoid paying it. The first is a pricing problem. The second is a legal problem. If your supply chain routes goods through a third country, or if a supplier offers a product at a price that seems too low for the duty it carries, that is the time to ask questions, not after CBP does.
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Frequently asked questions
Does the administrative review change the duty I already paid?
It sets the final rate, but the review happens after the fact. Commerce picks a review period, usually a year, examines the exporters in it, and publishes a final rate for that period. Your entries in that period liquidate at the final rate, not the deposit rate.
What happens if the final rate is higher than my deposit?
The difference is billed, with interest from the date of entry. If the final rate is lower, CBP refunds the difference with interest. The interest runs in both directions, which is why the deposit is an estimate and not a promise.
Does suspension of liquidation mean I do not owe duty yet?
No. Suspension of liquidation stops CBP from finalizing the entry, but the goods still enter and the deposit is still collected. Suspension means the final number is not decided yet, not that no duty is owed.
Can the final rate be higher than the rate I deposited at?
Yes, that is the most common outcome. The deposit rate is set from the original investigation, and the review rate reflects more recent sales data. Rates move in both directions, and a rate that goes up sharply is how importers get a bill a year after the goods sold.
What is EAPA and how does it relate to my entries?
It is a separate enforcement process for evasion, run under 19 USC 1517. EAPA can lead to additional duties and penalties, and it can run alongside a normal review. If CBP suspects transshipment or misclassification, the EAPA case is the one to worry about.