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Importers Used Second Scheme to Evade AD/CV Duties After First Discovered, CBP Finds

Published: Tuesday, November 24, 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.

•suspend or continue to suspend the liquidation of all entries imported by the importers that are subject to this case until instructed to liquidate

•rate adjust those entries previously extended, 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 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 TLN member Charles Crowley at ccrowley@strtrade.com.

Charles L. Crowley
Sandler, Travis & Rosenberg, P.A.
Country:
New York, USA
Practice Area:
International Trade
Website:
www.strtrade.com
Phone Number:
212-549-0134
Email:
Fax:
N/A
CHARLES CROWLEY is a member of Sandler, Travis & Rosenberg, P.A., resident in the New York office. As a nationally-recognized authority on international trade and business law, Mr. Crowley has substantial experience leading and directing global trade and customs practices. He concentrates his practice on assisting multinational corporations with a wide variety of customs and international trade activities, including international supply chain security and management, intellectual property rights, import/export process management, antidumping and countervailing duty matters, unfair trade actions and anti-corruption compliance. In addition, Mr. Crowley provides counsel to clients on customs issues such as first sale and other valuation matters, duty refunds and tax/tariff reductions, foreign-trade zones and customs audits. He also advises clients on penalty matters and brings considerable insight to these issues as a former attorney with U.S. Customs and Border Protection’s Office of Regulations and Rulings and as a licensed U.S. Customs Broker in good standing since 1999.
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