U.S. Customs and Border Protection has determined that there is a reasonable suspicion that an importer is evading the antidumping and countervailing duty orders on wooden cabinets and vanities and components thereof from China by transshipping them through Malaysia. For example, import data shows that imports from Malaysia rose substantially at the same time imports from China decreased significantly, a shift that coincided with the imposition of provisional measures in the AD/CV investigations on subject goods from China.
As a result of this determination, CBP is imposing the following interim measures.
- suspending liquidation of each unliquidated entry of covered goods entered on or after April 21, 2021
- extending the liquidation period for each unliquidated entry entered before that date
- requiring live entry, rejecting any entry summaries that do not comply, and requiring a refile of entries within the entry summary reject period
- evaluating the importer’s continuous bonds to determine their sufficiency
- if necessary, requiring a single transaction bond or additional security or the posting of a cash deposit with respect to covered goods
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. 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.
For more information on AD/CV duty evasion, please contact attorney Kristen Smith at (202) 730-4965 or via email.
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