CBP Initiates Investigation Into Aluminum Extrusion AD/CV Duty Evasion
CBP is investigating two New York companies related to allegations of antidumping and countervailing duty evasion for aluminum extrusions from China, the agency said in a May 14 notice. The investigation stems from allegations filed under the Enforce and Protect Act (EAPA) by the Aluminum Extrusions Fair Trade Committee (AEFTC) regarding Sun Bright International Corporation and Fair Importing Corporation. "Because the evidence thus far establishes reasonable suspicion that the Importers have entered merchandise into the United States through evasion, CBP has imposed interim measures," the agency said.
The companies were alleged to have evaded an AD duty order (A-570-967) and CV duty order (C-570-968) on aluminum extrusions from China, CBP said. The AEFTC filed two separate allegations against the companies on Jan. 9, and CBP decided to consolidate both into a single investigation, it said. The importers are alleged to transship aluminum extrusions from China and falsely declare the products as being of Malaysian origin, CBP said. The companies also "did not declare the goods as subject to AD or CVD orders and filed Type 01 entries, which are not subject to AD or CVD orders. As a result, the Importers did not deposit the applicable AD/CVD duties," the agency said.
Supporting the AEFTC allegations were an email exchange that linked Sun Bright with a freight forwarding company in China, Qingdao ZHV International Logistics, and Malaysian manufacturer CK Aluminium Enterprise, and included discussions of transshipment. In response questions from an "investigator," ZHV Logistics "explained that it ships products from Foshan, China to Port Kelang, Malaysia, where it changes the container and then re-exports the product to third countries," CBP said. After asking for examples of successful transshipments, ZHV Logistics provided a Certificate of Origin. The AEFTC "was able to correlate the Certificate of Origin to a shipment exported by CK Aluminium from Port Kelang, Malaysia and imported into the United States by 'Sunbright Industry' in New York," CBP said.
CBP sought more information from the importers through CF-28s and found "significant discrepancies" in the responses, it said. The agency also visited the purported factory in Malaysia and found "insufficient infrastructure" needs for "melting and extrudinglarge volumes of aluminum," it said. CBP found the evidence to "reasonably suggest" that evasion occurred, it said.
The agency will impose interim measures, meaning "all unliquidated entries of imported merchandise under this investigation that entered the United States as not subject to AD duties will be rate-adjusted to reflect that they are subject to the AD/CVD orders on aluminum extrusions from China and cash deposits are now required," it said. CBP acknowledged receipt of the AEFTC's allegations on Jan. 12, the agency said. "Therefore, the Importers’ entries covered by this investigation are those entries of aluminum extrusions that were entered for consumption, or withdrawn from warehouse for consumption, from January 12, 2017, through the pendency of this investigation."
The AEFTC celebrated the investigations in an emailed news release. “Since the AD/CVD orders were imposed in 2011, Chinese producers have actively attempted to undermine the relief the orders provide, to the detriment of the U.S. aluminum extrusions industry,” said Robert DeFrancesco, a lawyer at Wiley Rein who represents the AEFTC. “CBP’s decision is a critical step in ensuring that the orders are effectively enforced,” DeFrancesco noted. “While we are pleased with CBP’s determination, the Chinese government’s countenance of this type of rampant solicitation and rule-breaking amounts to a policy, act, and practice of the Chinese government that must be addressed on a broader scale.”
Email ITTNews@warren-news.com for a copy of the notice of investigation.