CBP Finds Evasion of AD/CVD Orders on Wooden Cabinets From China via Malaysia
CBP's Trade Remedy Law Enforcement Directorate found that Pacific Building Material, Deco Kitchen Cabinet & Bath, Skyview Cabinet USA and Greentree Trading Company evaded antidumping and countervailing duty orders on wooden cabinets and vanities and components thereof from China, in a Sept. 16 determination. The companies evaded the orders via Malaysia, CBP said, with the importers claiming the goods were made by Malaysia-based manufacturer Rowenda Kitchen Sdn. Bhd.
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None of the importers provided CBP with the requested production records that would have showed that the merchandise was actually produced by Rowenda Kitchen, CBP said. Greentree and PBM in particular did not reply to any of CBP's Requests for Information, leading to CBP applying adverse inferences to their cases. Deco and Skyview, on the other hand, did submit RFI responses, but the answers did not contain the needed production information to rebut this evasion finding, the customs agency said. Rowenda Kitchen also did not respond to any of CBP's RFIs.
Deco and Skyview attempted to fight against the notion that they were evading the AD/CVD orders, with Deco arguing that its shift in supply lines from China to Malaysia following the imposition of the AD/CVD orders does not indicate evasion but rather the normal flow of trade. CBP countered by saying it was not the switch in trade flows alone that led the agency to come up with a finding of evasion.
Deco also tried to invalidate an affidavit that CBP relied on when making its determination, which the importer argued amounted to a market researcher saying to somebody that someone in China is transshipping goods. This is no basis for CBP to be willing to "bankrupt an importer," Deco said. But this is not just any market researcher, CBP said. Rather, the affidavit came from a foreign research firm with hundreds of investigations under its belt that cites first-hand accounts of Rowenda Kitchen's operations that say it is incapable of making the wooden cabinets and vanities and engaged in a transshipment scheme, CBP said.