In separate cases, U.S. Customs and Border Protection has determined that there is a reasonable suspicion that importers are evading the antidumping and countervailing duty orders on aluminum extrusions from China (by not declaring certain door thresholds containing aluminum extrusions as subject to these orders) and hardwood plywood from China (by transshipment through Vietnam). 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 of subject goods

– rejecting any entry summaries that do not comply with live entry and requiring a refile for those within the entry summary reject period

– suspending liquidation of any entry entered on or after Aug. 10, 2018 (aluminum extrusions) or Aug. 15, 2018 (plywood) and extending the liquidation period for all unliquidated entries entered before those dates

– 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., 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.

© [2018], Sandler, Travis & Rosenberg, P.A. Originally published in the [12/06/2018] issue of the Sandler, Travis & Rosenberg Trade Report. Reprinted by permission.