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 four U.S. importers evaded the antidumping and countervailing duty orders on wooden cabinets and vanities and components thereof from China by misrepresenting the country of origin as Malaysia.

According to CBP, aggregate trade data shows surges in overall imports into Malaysia from China, and into the U.S. from Malaysia, of goods under the tariff numbers containing the subject goods following the imposition of provisional measures during the CV investigation of subject goods from China. Further, none of the importers provided production records demonstrating that their imports were produced by the Malaysian company they identified as the manufacturer.

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 in accordance with the interim measures, change those entries to type 03, and continue suspension, and (3) evaluate the importers’ continuous bonds 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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