In a final determination under the Enforce and Protect Act, U.S. Customs and Border Protection has found substantial evidence that three U.S. companies evaded the antidumping and countervailing duty orders on hardwood plywood products from China by transshipping them through Cambodia.
As a result, CBP will continue to (1) suspend liquidation for any entries of subject goods imported by the identified importers on or after June 26, 2019, (2) extend the period for liquidation of all unliquidated entries entered before that date, (3) require live entry for future entries of plywood from Cambodia involving the three importers, which will require them to post the applicable cash deposit rate prior to release of the goods, and (4) evaluate the importers’ continuous bonds and require single transaction bonds as appropriate. CBP could also pursue additional enforcement actions or penalties as appropriate.
The EAPA, part of the Trade Facilitation and Trade Enforcement Act, gives 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., through misrepresentation of the goods’ true country of origin, false or incorrect shipping and entry documentation, or misreporting of 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.
For more information on AD/CV duty evasion, please contact Kristen Smith at (202) 730-4965.
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