Diamond Sawblades Importer Faces Second EAPA Investigation

CBP is beginning an Enforce and Protect Act (EAPA) investigation into Lyke Industrial Tool over allegations of antidumping duty evasion for diamond sawblades from China, the agency said in an Oct. 30 notice. The same company was previously subject to an EAPA investigation that determined that Lyke evaded AD duties (see 1807240015). "CBP has imposed interim measures" because the evidence shows a "reasonable suspicion" that duty evasion occurred, the agency said.

The Diamond Sawblades Manufacturers Coalition filed the allegations against Lyke, as it did in the first EAPA investigation involving Lyke. "This is the fourth time we’ve successfully used the EAPA law to provide significant relief to the domestic industry from injurious imports,” said Daniel Pickard, a lawyer at Wiley Rein and counsel to DSMC. “We are pleased by CBP’s latest decision and thankful for the agency’s continued commitment to the vigorous enforcement of AD/CVD laws.” A lawyer with Pennington P.A. who represents Lyke didn't respond to a request for comment.

Lyke was alleged to have evaded an antidumping duty order on diamond sawblades from China (A-570-900). According to the DSMC, Lyke used misclassification and transshipments through Thailand to avoid paying the AD duties. CBP followed up on the allegations through cargo exams on six entries. "CBP determined that a portion of one entry of possibly Chinese-origin diamond sawblades with Made in China markings altered or obscured with Made in Thailand labels was transshipped through Thailand and bore false country of origin
labels."

CBP also visited the Thailand location of a similarly named company, Like Tools, which began exporting saw blades to Lyke in 2018 with no prior history of exports. CBP was unable to confirm the production capability claims from Like and "observed areas of concern regarding testing, country of origin marking, and packaging," the agency said. Additionally, "the lack of permanent country of origin markings on merchandise imported by Lyke from Thailand, as CBP observed in the aforementioned cargo examination and onsite at Like Tools, allows for the merchandise to be more easily transshipped from China through Thailand," it said. As a result, CBP said it will impose interim measures, including rate adjustments and suspended liquidations for unliquidated entries under investigation.