Diamond Tools Technology Evaded Antidumping Duty Order, CBP Says

Diamond Tools Technology evaded antidumping duties on diamond sawblades from China, as alleged (see 1706280035), CBP said in a Sept. 17 final determination. After conferring with the Commerce Department through a scope referral, the agency found that substantial evidence supported the allegation. The law firm Wiley Rein lawyer Daniel Pickard filed the original allegation on behalf of the Diamond Sawblades Manufacturers Coalition in 2017.

The evasion involves AD order A-570-900 on diamond sawblades from China and entries that were claimed to be of Thai origin. After CBP began the investigation, it sought Commerce's input. "Because DTT Thailand assembled cores and segments in Thailand, but did not source all inputs from Thailand, CBP was unable to determine whether the merchandise was covered under the scope of the AD order," CBP said. The agency paused the timelines in the proceeding as a result of the referral, it said.

Commerce responded to CBP that “diamond sawblades made in Thailand by Diamond Tools using Chinese cores and Chinese segments are subject to the AD order, but diamond sawblades made in Thailand by Diamond Tools using either Thai cores or Thai segments are not subject to the AD order.” Commerce said it relied on "its findings from a separate proceeding, which happened to be an anti-circumvention investigation involving DTT." CBP verified that "DTT Thailand sourced Chinese-origin cores and Chinese-origin segments and joined them in Thailand," meaning that DTT's type 01 entries "should have been entered as type 03 entries and cash deposits collected," CBP said.

DTT argued that Commerce's decision, because it was based on the anti-circumvention investigation, is prospective and that the entries in 2017 were then not covered merchandise. CBP said that's not the case and that, unlike in the anti-circumvention investigation, a CBP covered merchandise referral specifically asks for guidance from Commerce on "whether for the purposes of an [Enforce and Protect Act (EAPA)] investigation, the merchandise described in an EAPA allegation is covered by an AD/CVD order." It's Commerce's prerogative for how it makes its decision, CBP said. DTT's lawyer, Dean Barclay of White & Case, declined to comment.

Even though there may have been some production of Thai-origin sawblades, "CBP officials established that DTT Thailand sourced a large number of Chinese origin cores and segments," the agency said. Imports of the blades "lacked clear documentation or labelling that distinguished their country of origin, and the evidence on the record shows that the covered and uncovered merchandise were comingled," CBP said. "This comingling of covered and uncovered merchandise created the opportunity for DTT to evade duties through the lack of differentiation. Therefore, we determine that all merchandise that does not identify the country-of-origin of its cores and segments is covered merchandise and that DTT Thailand evaded the AD order by importing Chinese-origin diamond sawblades and claiming that merchandise was Thai-origin on entry documents."

As a result of the determination, "for future entries of diamond sawblades from Thailand involving DTT Thailand, CBP will continue to require live entry, where the importer must post the applicable cash deposits prior to the release of merchandise into U.S. commerce," it said. "Finally, CBP will continue to evaluate the importer’s continuous bonds in accordance with CBP’s policies, and will continue to require single transaction bonds as appropriate." Other enforcement actions also remain possible, it said.