CBP announced various findings with respect to suspected antidumping duty evasion under Enforce and Protect Act of 2015 (“EAPA”), a law which offers parties (allegedly) injured by imports of merchandise subject to antidumping/countervailing (ADD/CVD) duty evasion to ask CBP for a help. Pursuant to EAPA, which is part of Trade Facilitation and Trade Enforcement Act of 2015, CBP promulgated a new part under Title 19: Part 165 – Investigation of Claims of Evasion of Antidumping and Countervailing Duties. These findings are under case numbers 7191, 15135/7175, 7184, 7189.
Findings dealt with investigations of alleged evasions of wire garment hangers and diamond saw blades and should be a must read literature for importers dealing with antidumping/countervailing duties because importers that deal high risk ADD/CVD merchandise are introduced into investigation process by CBP. In turn, knowledge of process, can help importers to mitigate possibility of “fire and fury” under EAPA.
One of the things that CBP will look for is a sign of transhipment of ADD/CVD merchandise through non-ADD/CVD territory. As a part of investigation, CBP will focus on Shipper/Manufacturer. CBP will review individuals who have a stake in ownership of the legal entity or entities, and whether any of these entities are shell companies. Evaluation of entities will review financials, production capacity, and use of energy and employees in furtherance of the production. To corroborate evaluation, CBP will conduct a site visit to see if data corresponds to the situation on the ground. If there is no match, it is a sign of trouble (e.g. from Case 7191 “Building and lot were largely vacant, and the interior did not match any of the photos provided.”).
CBP findings may result, among other things, in suspension of entry liquidation and eventual assessment of ADD/CVD, cash deposit and live entry requirements.