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 steel wheels from China by transshipping them through Thailand.
As a result, CBP is imposing the following interim measures.
- suspending liquidation of each unliquidated entry of covered goods entered on or after Aug. 18, 2020
- extending the liquidation period for each unliquidated entry entered before that date
- requiring live entry and rejecting any entry summaries that do not comply
- requiring a refile of entries within the entry summary reject period
- requiring a single transaction bond or additional security or the posting of a cash deposit with respect to covered goods
- evaluating the importer’s continuous bonds to determine their sufficiency
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.
For more information on AD/CV duty evasion, please contact Kristen Smith at (202) 730-4965.
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