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Transshipment Used to Evade AD Duties on Sawblades, CBP Finds

Friday, October 04, 2019
Sandler, Travis & Rosenberg Trade Report

In a final determination under the Enforce and Protect Act, U.S. Customs and Border Protection has found substantial evidence that a U.S. company evaded the antidumping duty order on diamond sawblades from China by transshipping such goods through Thailand.

As a result of this final determination, CBP will continue to (a) suspend liquidation for any entry of subject goods entered on or after July 25, 2018, (b) extend the liquidation period for all unliquidated entries of subject goods entered before that date, (c) require live entry, which requires the importer to post the applicable cash deposit rate prior to the release of goods into U.S. commerce, for future entries of diamond sawblades from Thailand involving this company, and (d) evaluate the continuous bond of the importer 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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