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 quartz surface products from China by transshipping them through Taiwan. CBP states that it was unable to corroborate the importer’s claims that its QSP were manufactured in Taiwan, noting that the importer submitted documents with multiple discrepancies and failed to provide the requested accounting and production documentation. Further, CBP states, trade data show a drastic decline in QSP imports from China and a sharp spike in QSP imports from Taiwan in 2018 when the AD/CV investigation took place.
As a result of its determination, CBP is imposing the following interim measures.
- suspending liquidation of each unliquidated entry of covered goods entered on or after Nov. 7 and extending the liquidation period for covered goods entered before that date
- requiring live entry for future shipments of QSP imported by the importer, meaning it must submit proper import documentation and duties prior to the release of its goods; rejecting any entry summaries that do not comply; and requiring a refile of entries within the entry summary rejection period
- evaluating the importer’s continuous bonds to determine their sufficiency and requiring a single transaction bond or additional security or cash deposit for covered goods if deemed necessary
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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