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 cast iron steel pipe and cast iron soil pipe fittings from China by transshipping them through Malaysia and misclassifying them as non-covered goods.
As a result of its determination, CBP is imposing the following interim measures.
- suspending liquidation entries made after Feb. 1 and extending liquidation of entries made before that date
- requiring live entry, meaning the importer must submit proper import documentation and duties prior to the release of its goods
- evaluating the importer’s continuous bonds and applying single transaction bonds for its entries as appropriate
Under the Enforce and Protect Act 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 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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