CBP Determines Diamond Sawblades Importers Evaded AD Duties

Power Tek Tool and Lyke Industrial Tool used evasion to avoid antidumping duties on diamond sawblades from China, CBP said in a July 20 final determination. The final determination stems from an allegation filed by the Diamond Sawblades Manufacturer Coalition (DSMC) under the Enforce and Protect Act (EAPA) and the follow-up investigation started by CBP (see 1709250035). CBP found that "substantial evidence" showed the companies imported diamond sawblades from China "but did not declare the AD order upon entry; and, as a result, no cash deposits were applied to the merchandise."

The companies were alleged to have evaded an antidumping duty order on diamond sawblades from China (A-570-900). In response to CBP's determination, "Lyke and Power Tek argued that the imported diamond sawblades are not covered by the AD order because they were of a Rockwell C hardness of less than 25 prior to incorporation into the finished product," the agency said. This claim isn't supported by any sales documentation and CBP tests found some samples to hardness cores above 25, it said. Even if true, "under the language in the scope of the AD order, none of these sawblades would fall within that exclusion," CBP said.

CBP also decided to apply "an adverse inference" to information provided on who the exporters were, CBP said. "For this AD order, the rate is determined by who the exporter is for that entry" and evidence provided by Lyke and Power Tek "does not establish that NYCL is the exporter," CBP said. Another entity, Danyang LIKE Tools Manufacturing Co. (LIKE), "is the conduit through which NYCL files its [importer security filing] and invoice to the customs broker," CBP said. "Given the contradictory information on the record of this investigation as to who served as the exporter and the failure of parties to answer [request for information] questions regarding the roles of NYCL and LIKE in the exportation of covered merchandise, CBP is applying an adverse inference," the agency said.

As a result of its finding "CBP will continue to suspend the liquidation for any entry that has entered on or after July 18, 2017, the date of initiation of this investigation" and "extend the period for liquidation for all unliquidated entries that entered before that date," CBP said. "CBP will continue to require live entry, which requires that the importers post the applicable cash deposits prior to the release. Finally, CBP will evaluate the continuous bond of the importer in accordance with CBP’s policies, and may require single transaction bonds as appropriate."

The DSMC is pleased with the decision, it said in an emailed statement. “This is a substantial development for the U.S. diamond sawblades industry,” said Daniel Pickard, a Wiley Rein lawyer who represents the DSMC.