In a final determination, https://www.cbp.gov/trade/trade-enforcement/tftea/eapa/recent-eapa-actions/eapa-action-notice-determination-evasion-eapa-case-7734-aluminum-extrusions under the Enforce and Protect Act, U.S. Customs and Border Protection has determined that there is substantial evidence that an importer evaded the antidumping and countervailing duty orders on aluminum extrusions from China by importing aluminum extrusion fence components from Chinese suppliers that were not excluded from the scope of these orders but failing to declare those components as subject to the orders or make the appropriate cash deposits.
According to CBP, the importer claimed that its imported goods were not subject to these orders because they are finished goods kits (which are specifically excluded from the scope of the orders). However, CBP said that “the mere presence of an assortment of parts/components and associated items is not sufficient for the merchandise to be classified as a ‘finished goods kit.’”
As a result of its determination CBP will (1) suspend or continue to suspend liquidation of all subject entries, (2) rate adjust entries previously extended, change those entries to type 03, and continue suspension, and (3) evaluate the importer’s continuous bond and require single transaction bonds as appropriate.
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 investigate these claims and can impose initial remedial measures that can 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.
JEFFREY NEWMAN US A WHISTLEBLOWER LAWYER WHO HANDLES CUSTOMS FRAUD CASES UNDER THE FALSE CLAIMS ACT(FCA) (QUI TAM). HE CAN BE REACHED AT JEFF@JEFFNEWMANLAW.COM OR AT 617-823-3217
