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 aluminum extrusions from China by failing to declare entries of aluminum fence merchandise from Chinese suppliers as subject to those orders and to pay the required cash deposits.
According to CBP, the importer claimed that its imported goods were not subject to these orders because they are finished goods kits (which are specifically excluded from the scope of the orders). However, CBP said that “the mere presence of an assortment of parts/components and associated items is not sufficient for the merchandise to be classified as a ‘finished goods kit.’”
As a result of its determination, CBP is imposing the following interim measures.
- suspending liquidation of each unliquidated entry of subject goods that entered on or after March 21, 2023, and extending the liquidation period for subject goods entered before that date
- requiring live entry, meaning the importer must submit proper import documentation and duties prior to the release of its goods; rejecting any entry summaries that do not comply; and requiring refiling of entries within the entry summary rejection period
- evaluating the importer’s continuous bonds to determine their sufficiency and potentially requiring a single transaction bond or additional security, or the posting of a cash deposit, with respect to subject goods
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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