| Q: | If a case has been revoked what expenditures are allowable to claim on this case? |
| A: | For duty orders or findings that have been revoked, expenses must be incurred before the effective date of the revocation to be eligible for offset. Example: For case A-331-802 Frozen or canned warm-water shrimp and prawns from Ecuador, the order date is 02/01/2005 and the revocation effective date is 08/15/2007; therefore, eligible expenditures must be incurred between 02/01/2005 and 08/15/2007. |
| Q: | What can I use as qualifying expenditures? |
| A: | Any cost associated with the production of the product being filed on could be considered a qualifying expenditure. In 2001, CBP published in the Federal Register Notice guidance on qualifying expenditures, which indicated that Generally Accepted Accounting Principles (GAAP) should be followed in determining expenses that relate to cost of production. See 66 FRN page 48548. Generally, this means that your qualifying expenditures should relate to your normal cost of goods sold and your inventory costs. |
| Q: | I do not have expenditures for all ten categories listed in the Federal Register Notice. What should I do? |
| A: | The categories listed in the Federal Register Notice are guidelines. Not all claimants will have expenditures listed for all categories. If you do not have expenditures for certain categories either leave this category blank or put a zero. |
| Q: | I am not sure which category my qualifying expenditures fit into. Some expenditures fit into more than one category. For example, ice could be considered equipment or raw material. |
| A: | It is up to each claimant to determine which category their expenditures fit into. CBP cannot make this determination for the claimant. Please make sure to keep all paperwork/documentations needed to support qualifying expenditures. |
| Q: | I have a business partner who I split expenses with. Both of our names appear on the US ITC list as well as our company name. How do we file our qualifying expenditures? |
| A: | Expenditures cannot be claimed more than once. It is up to the claimants to determine if they would like to split the expenditures and file individually or if they want to file one certification containing all expenditures. |
| Q: | What is the start and end dates for qualifying expenditures? |
| A: | Qualifying expenditures start at the Act of the Order date which is different for every commodity. Act of the Order dates can be found at The United States International Trade Commission web site.
(
The United States International Trade Commission web site ) Qualifying expenditures end when the certifications are completed and sent to CBP prior to the deadline. |
| Q: | What is the start and end date for qualifying expenditures when a case has been revoked by the International Trade Commission (ITC)? |
| A: | Qualifying expenditures begin to accumulate at the Act of the Order Date which is different for every case. Qualifying expenditures stop accumulating when the ITC revokes a case and publishes an effective date for the revocation. This information can be found by searching for a case at Searching the United States International Trade Commission web site.
(
The United States International Trade Commission web site ) |
| Q: | What are previously certified qualifying expenditures? |
| A: | Previously certified qualifying expenditures are the total amount of expenditures claimed in previous years. |
| Q: | What is working capital and other funds needed to maintain production? |
| A: | This category should be used to include other expenses not otherwise categorized in the certification that would normally be included in cost of goods sold. GAAP should be used in determining expenses. The term “working capital” should not be construed that the balance in a balance sheet account can be claimed. Balance sheet amounts do not represent expenses. |
| Q: | Can I claim the balance in my inventory as a production cost? |
| A: | No. Balance sheet amounts cannot be claimed. Since costs of production are included in the inventory, this would amount to “double claiming” when the inventory was sold in subsequent periods. |
| Q: | What is an example of an expenditure pertaining to manufacturing facilities? |
| A: | Examples would include expenses related to building, and other structures involved in production. GAAP should be used in determining which expenses qualify and how they can be allocated towards your cost of goods sold. |
| Q: | What is an example of an expenditure pertaining to equipment? |
| A: | Examples of equipment would include plant facilities, machinery, equipment and fixtures involved in production. GAAP should be used in determining which expenses qualify and how they can be allocated towards cost of goods sold. |
| Q: | What is an example of an expenditure pertaining to acquisition of technology? |
| A: | Examples would include computer equipment, software, and some testing equipment that are involved in production. GAAP should be used in determining which expenses qualify and how they can be allocated towards cost of good sold. |
| Q: | What qualifies as a manufacturing facilities cost? |
| A: | These are expenses related to assets of a durable nature that are used to produce goods. GAAP should be used in determining which expenses qualify and how they can be allocated towards cost of good sold. |
| Q: | What expenses are normally not considered costs of production? |
| A: | According to GAAP, sales and distribution expenses, general and administrative expenses and income taxes are not normally part of costs of goods sold. |
| Q: | Can I claim property taxes and income taxes on my certification? |
| A: | If they can be appropriately allocated towards cost of goods sold in accordance to GAAP, then property taxes can be claimed. |
| Q: | If I take a loan to buy equipment, can I claim depreciation and the loan payments plus interest? |
| A: | No. You should only claim what is allocable towards cost of goods sold. This may include depreciation and interest. To claim depreciation and loan payments would amount to “double claiming”. |
| Q: | If I manufacture products covered and not covered by CDSOA, can I still claim expenses for my building and equipment on the certification? |
| A: | Yes, but your expenses would need to be prorated in accordance with GAAP. |
| Q: | Can I claim imported parts or products as raw materials on my CDSOA claim? |
| A: | Yes, if these raw materials are part of cost of goods sold in accordance to GAAP. |
| Q: | Can I claim expenses that I am reimbursed for? |
| A: | Reimbursable expenses do not qualify since the claimant is reimbursed and does not incur an outlay. |
| Q: | How will the repeal of CDSOA by section 7601(a) of the Deficit Reduction Act of 2005 affect future CDSOA disbursements? |
| A: | The full impact of the CDSOA repeal on amounts available for distribution may be delayed for several years. Money collected on an entry filed before October 1, 2007, will continue to be subject to the distribution procedures under former section 1675c. The duty on an entry is not available for distribution until the entry is liquidated pursuant to the direction of the Department of Commerce and the duty is collected and deposited into the special account; therefore, the distribution process will continue until all entries made before October 1, 2007 are liquidated and the duties are collected. As a result of the statutory constraints in the assessment of antidumping and countervailing duties, the distribution process will continue for an undetermined period; however, the amount of money available for distribution can be expected to diminish over time. It should also be noted that amounts distributed may be subject to recovery, as a result of reliquidations, court actions, administrative errors, and other reasons. |
| Q: | How will the repeal of CDSOA affect the claiming of qualifying expenditures in future CDSOA certification filings? |
| A: | 19 CFR 159.61(c) provided that expenses must be incurred after the issuance, and prior to the termination, of the antidumping order or finding or countervailing duty order under which distribution is sought. The repeal language parallels the termination of an order; thus, for duty orders or findings that have not been previously revoked, expenses must be incurred before October 1, 2007 to be eligible for offset. |
