Eastern Trading NY Under CBP Investigation for Antidumping Duty Evasion

CBP is formally investigating Eastern Trading NY over allegations of antidumping duty evasions filed under CBP's new evasion enforcement processes (see 1608190014), the agency said in a "public version" of its notice to the company (here). The company is alleged to have evaded "the antidumping duty order on steel wire garment hangers from the People’s Republic of China," the agency said. "Interim measures apply because CBP determined that there is a reasonable suspicion that the importer entered covered merchandise into the customs territory of the United States through evasion," the agency said.

M&B Metal filed the allegation with CBP on Sept. 15, saying that Eastern Trading is importing steel wire garment hangers of Chinese origin that are being transshipped through Thailand by Everbright Clothes Hanger "in order to avoid the payment of antidumping duties," CBP said. The initial investigation began Oct. 11, CBP said in the Dec. 13 notice to Eastern Trading. After Eastern Trading responded to a CBP Form 28 with production records and information about Everbright, CBP conducted a site visit to Everbright in Thailand, the agency said. CBP observed a number of "discrepancies" from the CF 28 information, including fewer staff and machines than were reported, it said.

Those issues and others are enough to raise a "reasonable suspicion" of potential evasion, CBP said to Eastern Trading. As a result, "entries under this investigation that entered the United States as not subject to antidumping duties, have been rate-adjusted to reflect that they are subject to the antidumping duty order on steel wire garment hangers from China and cash deposits are owed," CBP said. "Additionally, 'live entry' is required for all future imports for Eastern Trading, meaning that all entry documents and duties are required to be provided before cargo is released by CBP into the U.S. commerce. CBP will further suspend the liquidation for any entry that has entered on or after October 11, 2016, the date of initiation of this investigation; and extend the period for liquidation for all unliquidated entries that entered before that date." Eastern Trading didn't comment.

CBP also posted its Oct. 17 notice to Wheatland Tube (here) describing its decision not to begin an Enforce and Protect Act (EAPA) investigation of welded steel pipe from China after Wheatland filed an evasion allegation (see 1610190029). Wheatland alleged that NEXTracker imported circular welded pipe from China subject to an AD/CVD order "at prices well below those necessary to reflect the applicable cash deposit rates and eventual duty assessment." Despite that assertion, Wheatland didn't provide evidence that reasonably suggests NEXTracker was evading the duties, CBP said. A CBP official recently said allegations will mostly need to include a complete theory of evasion to trigger an investigation (see 1611210053).

CBP posted the notices "to provide interested parties, and in particular small businesses, information on the newly implemented administrative process for EAPA investigations," it said (here). "Any person having particular knowledge of the allegation described in an ongoing investigation may contact a party to that investigation to request that information be placed upon the administrative record for consideration by CBP." There's been some question on exactly what CBP plans to release publicly as part of the EAPA investigations (see 1610240014). "This is not necessarily standard practice for notices of action," said a CBP spokeswoman. "However, CBP does intend to post final determinations once we begin issuing those. As yet, we have not yet had an investigation reach that point." The two notices posted are the only notices CBP has issued, she said.