Importers Used Second Scheme to Evade AD/CV Duties After First Discovered, CBP Finds
Source
American Shipper
Post Date
11/20/2020
In a final determination under the Enforce and Protect Act, U.S. Customs and Border Protection has found substantial evidence that two U.S. importers evaded the antidumping duty order on carbon steel butt-weld pipe fittings from China by transshipping them through Vietnam. Among other things, CBP identified multiple sales contracts involving these importers with fine print indicating that transshipment was ¡°to be allowed,¡± identified ¡°vast inconsistencies¡± between the equipment purchase documentation provided by the importers and a response from the Vietnamese company, and found evidence suggesting that the importers shifted their business from Malaysia to Vietnam after the Department of Commerce¡¯s determination of circumvention with respect to pipe fittings from China through Malaysia. As a result of this determination, CBP will take the following measures. - susp or continue to susp the liquidation of all entries imported by the importers that are subject to this case until instructed to liquidate - rate adjust those entries previously exted, change those entries to type 03, and continue suspension until instructed to liquidate - continue to evaluate the importers¡¯ continuous bonds and to require single transaction bonds as appropriate The EAPA, 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 acteristics. 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 investiga
