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Import Measures Imposed on Goods Alleged to Evade AD Duties

Friday, June 29, 2018
Sandler, Travis & Rosenberg Trade Report

U.S. Customs and Border Protection has determined that there is a reasonable suspicion that evasion of the antidumping duty order on aluminum extrusions from China is taking place. The petitioner in this case alleges that an importer misclassified extruded aluminum door thresholds as plastic wall plates, transshipped such thresholds from China through Vietnam, and has a history of attempting to avoid AD duties under this order.

As a result of its determination, CBP is imposing the following interim measures.

- rate adjusting all unliquidated entries of subject goods entered as not subject to AD duties and requiring AD cash deposits

- requiring live entry for all future imports by the importer at issue

- rejecting unliquidated entry summaries submitted prior to May 17

- suspending liquidation of any unliquidated entry entered on or after Feb. 9, 2018, and extending the liquidation period for all unliquidated entries entered before that date

- evaluating the importer’s continuous bond and requiring single transaction bonds as appropriate

The Enforce and Protect Act, part of the Trade Facilitation and Trade Enforcement Act, gave CBP a significantly expanded role in investigating AD/CV duty evasion and the authorities to match. Under CBP regulations implementing the EAPA any interested party, including competing importers and federal government agencies, may submit allegations that AD/CV duties are being evaded; e.g., by misrepresenting the goods’ true country of origin, submitting false or incorrect shipping and entry documentation, or misreporting the goods’ physical characteristics.

CBP has broad authority to conduct investigations of these claims and can impose initial remedial measures that could interrupt a supply chain in as little as 90 days. Any final determination of evasion may be met with not only AD/CV duties but also other enforcement measures such as civil or criminal investigations.

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