CBP Finds Evidence of Duty Evasion in Case on Wooden Cabinets From China
An investigation by CBP into alleged evasion of antidumping and countervailing duties on wooden cabinets and vanities from China has found substantial evidence of evasion by four importers. In a final EAPA determination, CBP found that ZL Center, USGS, Inc., JGS Import, Inc. and US Sunergy Corp. evaded AD and CVD orders by misrepresenting imports of Chinese-origin WCV as Malaysian.
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The investigation (Consolidated Investigation 7614) followed a May 2021 allegation by MasterBrand that WCV originated in China and was transshipped through Malaysia by the four importers. Masterbrand provided aggregate trade data showing surges of WCV in overall imports into Malaysia from China, and into the U.S. from Malaysia after the Department of Commerce’s preliminary determination in its investigation of WCV from China and its implementation of provisional measures. Masterbrand also noted that the claimed Malaysian manufacturer, Polygonplus, was incorporated in the month immediately following publication of Commerce’s affirmative AD and CVD determinations and one month before the orders were published.
On Sept. 27, 2021, CBP informed the importers and Polygonplus of the investigation and interim measures. Only US Sunergy replied to CBP's information requests but CBP found that the reply did not contain "critical manufacturing information to demonstrate that WCV was produced in Malaysia by Polygonplus." The determination stated that CBP is "deeply concerned that US Sunergy has an inaccurate understanding of Polygonplus’ manufacturing capabilities... ." CBP conducted various searches of the address for Polygonplus and found imagery that showed no indication of manufacturing. CBP further cited foreign market research that indicated Polygonplus was a “fronting company," and statements by a Polygonplus employee "openly offering assistance with transshipment of cabinets produced in China."
CBP found reasonable evidence of evasion in MasterBrand's allegation that the four importers were evading the AD/CVD orders. CBP noted that because Polyponplus did not cooperate with the investigation, CBP had no evidence on the record from the manufacturer that refutes MasterBrand's allegation. CBP found that ZL Center, USGS, JGS and Polygonplus "did not cooperate to the best of its ability" in the investigation. The evidence provided and the application of adverse inferences from noncooperation support the conclusion that the WCV supposedly imported from Malaysia was instead from China, CBP said in its determination.