U.S. Customs and Border Protection has determined that there is a reasonable suspicion that an importer is evading the antidumping duty order on diamond sawblades and parts thereof from China by transshipping them in two ways: (1) acting as the importer of record for Chinese-origin diamond sawblades that are wholly manufactured in China, transshipped through Canada, and presented as Canadian-origin goods upon importation into the U.S., and (2) having an affiliate attach Chinese-origin segments and cores to assembled diamond sawblades in Canada that are then imported into the U.S.

Separately, CBP has determined that there is a reasonable suspicion that an importer is evading the AD and CV duty orders on quartz surface products from China by misclassifying such goods as crushed glass.

As a result of its determinations, CBP is imposing the following interim measures.

- suspending liquidation of each unliquidated entry of covered goods entered on or after Sept. 11, 2019 (sawblades) or Feb. 1, 2021 (quartz products)

- extending the liquidation period for each unliquidated entry entered before those dates

- 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 importers’ 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. 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 attorney Kristen Smith at (202) 730-4965 or via email.  

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