In a final determination under the Enforce and Protect Act, U.S. Customs and Border Protection has determined that there is substantial evidence that a U.S. importer evaded the antidumping duty order on diamond sawblades from China by transshipping them through Thailand. CBP states that this evidence includes Chinese-origin merchandise labels CBP officials observed at a Thai company’s facility, documentation claiming that the Thai company sold its equipment even though it was observed by CBP officials in the factory during a verification, and the importer’s past record of evasion.
As a result of this determination, CBP will (1) require that the importer deposit estimated duties at the time of entry for any imports of diamond sawblades from the Thai company, (2) evaluate the importer’s continuous bond, and (3) require single transaction bonds as appropriate.
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 investigate these claims and can impose initial remedial measures that can 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.
For more information on AD/CV duty evasion, please contact Kristen Smith at (202) 730-4965.
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