8 June 2018
Evasion of AD Duties on Mainland Chinese Aluminium Extrusions Under Investigation
CBP has initiated an investigation to examine an allegation that specific importers have evaded the antidumping and countervailing duty orders on aluminium extrusions from mainland China by transshipping mainland Chinese-origin goods through Malaysia and falsely declaring them as being of Malaysian origin. Following a review of information provided by the importers and a site visit to Malaysia, CBP determined that there is a reasonable suspicion that evasion is taking place. For example, CBP’s photographs of the exterior of the purported manufacturing location in Malaysia show a facility incapable of housing the machines, supplies and workers claimed by the importers and lacking the required infrastructure to melt and extrude large volumes of aluminium.
As a result, CBP is imposing the following interim measures.
- rate adjusting all unliquidated entries of subject goods entered as not subject to AD/CV duties and requiring AD/CV cash deposits
- requiring live entry for all future imports by the importers at issue
- rejecting any entry summaries and requiring a refile for those that are within the entry summary reject period
- suspending liquidation of any entry entered on or after 5 February 2018 and extending the liquidation period for all unliquidated entries entered before that date
- evaluating the importers’ continuous bonds and requiring single transaction bonds as appropriate
The Enforce and Protect Act, 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., through misrepresentation of the goods’ true country of origin, false or incorrect shipping and entry documentation, or misreporting of 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.