Background

In a final determination under the Enforce and Protect Act, U.S. Customs and Border Protection has determined that there is substantial evidence that an importer evaded the antidumping and countervailing duty orders on cast iron soil pipe and cast iron soil pipe fittings from China by transshipping covered goods through Malaysia and misclassifying them when entered into the U.S.

As a result of its determination CBP will (1) suspend or continue to suspend liquidation of all subject entries, (2) rate adjust entries previously extended, change those entries to type 03, and continue suspension of liquidation, and (3) continue to evaluate the importer’s continuous bond and require single transaction bonds as appropriate.

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 investigate these claims and can impose initial remedial measures that can 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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