CBP Finds Evidence of Duty Evasion in Case on Wooden Cabinets From China
CBP is imposing "interim measures" on C.I.S. Investments after preliminarily finding in an Enforce and Protest Act (EAPA) investigation that the importer evaded antidumping and countervailing duty orders on Chinese-origin forged steel fittings, according to a May 24 announcement by CBP. The case is based on an allegation by Flatlands that CIS evaded AD/CVD orders by transshipping the subject fittings through Sri Lanka, Indonesia, and Thailand. Flatlands alleges that two exporters in Sri Lanka and one exporter each in Thailand and Indonesia were involved in the transshipment scheme.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
Steel fittings from Sri Lanka allegedly come from two companies: Eastborn and EFL. Flatlands says that both companies are listed as "logistics companies" rather than manufacturers on their own websites and import data shows that both companies imported Chinese-origin steel fittings, which Flatlands says "legitimate producers" would not do. Flatlands also believes that a material test report for the fittings listing Eastborn as the manufacturer is fraudulent because it was signed by the alleged head quality engineer at Jiangsu Forged Steel Fittings, a Chinese steel company subject to the underlying AD/CVD orders, and that Eastborn's address is not suitable for a facility producing and testing steel fittings.
An Indonesian supplier, PT Satria Tunas Persada, also has a listed address that is unsuitable for producing and testing steel fittings and employees are linked through social media to Jiangsu, Flatlands said. A Thai supplier, Siam Innovation Goods, also had facilities unsuitable for production, it said. Flatlands also noted that the underlying investigation did not find that either Thailand or Indonesia were significant producers of steel fittings.
The shipper for "most of CIS’ shipments" was Kingtrans Container Line Co. Ltd., a Chinese company, Flatlands said. Kingtrans advertises sending Chinese-made products to third countries in South and Southeast Asia for transshipment to the U.S., the alleger said. Kingtrans’ website even includes a document that reveals part of CIS’s address in an example of a success story, it said.
CBP's Trade Remedy Law Enforcement Directorate found the allegations reasonably suggested that CIS had evaded the orders and subsequently initiated the investigation on Feb. 16. CIS responded to CBP information requests on April 5 with shipping records, invoices, and factory profiles. CBP found that "after every import shipment of [steel fittings] into Thailand," SIG made similar exports to the U.S. within a short time. During a visit to Thailand, CBP investigators confirmed Flatlands's allegation that SIG possessed no production facilities. Further investigation concluded that, "Eastborn is not a legitimate manufacturer and the connection between all four exporters and Kingtrans supports suspicion that they are engaged in evasion."
CBP is imposing interim measures that suspend liquidation of covered merchandise entered after Feb. 16 and extend the period for liquidating entries of covered merchandise, and plans to take additional measures to protect the revenue of the U.S.