New Shipper Review Amendment Act of 2005

The New Shipper Review Amendment Act of 2005 (S. 695) was designed to close a loophole in U.S. trade laws that allowed some foreign companies to avoid paying import duties. Under the law at the time, new foreign exporters could ship goods into the U.S. by posting a bond or security instead of paying an immediate cash deposit for "antidumping" or "countervailing" duties, which are taxes intended to protect domestic industries from unfairly low-priced foreign goods.

This bill suspended that "bonding privilege" for three years, requiring all new shippers to pay these duties in cash upfront while the government reviewed their pricing. For American citizens and businesses, the practical impact was intended to ensure that domestic producers, such as farmers and manufacturers, were better protected from foreign competitors who might use the bonding system to avoid paying taxes and then disappear before the government could collect. The bill also required a report to Congress to determine if these changes effectively prevented tax evasion and reduced administrative burdens on the Department of Commerce.