CBP Looking Into Possible AD/CV Evasion Through Importer Misclassification of Quartz Surface Products

CBP is investigating Vivaldi Commercial and Vivaldi Interiors over allegations that the companies evaded antidumping and countervailing duty orders on quartz surface products from China, the agency said in a May 10 notice it recently posted. CBP began the investigation in response to allegations filed by Cambria Company, represented by Luke Meisner of Schagrin Associates.

Cambria filed allegations against the two companies in December, CBP said. The companies are "registered at the same physical address in Houston, Texas to owners with the same surname," according to tax documents submitted by Cambria, and CBP consolidated the investigation into one, the agency said. Vivaldi is said to have evaded the AD/CV orders A-570-084 and C-570-085 "through the misclassification of Chinese-origin quartz surface products as crushed glass," CBP said. Vivaldi didn't comment.

CBP requested more information through Customs Form 28s, it said. In its response, Vivaldi "claimed to import 'ECO Glass' countertops described as 'slabs of crushed glass slabs,'" CBP said. Vivaldi said it previously provided samples to CBP as part of a 2018 classification ruling request that was used "to explain ECO Glass’ exclusion from the AD/CVD order," CBP said. "While CBP made a specific ruling on the samples provided in 2018, it was determined that sampling was necessary for more recent shipments of ECO Glass," the agency said.

CBP subsequently "initiated a series of cargo examinations and laboratory analyses to further investigate Vivaldi’s alleged evasion scheme," it said. The agency found some discrepancies within entry documents for shipments of ECO Glass countertops, including differing classifications between the CBP entry forms and the bill of lading.

Based on the allegations and further examination, CBP decided reasonable suspicion of evasion exists. As a result, the agency will impose interim measures on imports from the Vivaldi companies. CBP will "require live entry requiring cash deposits to be posted prior to release of merchandise from CBP custody" and will "reject any entry summaries that do not comply with live entry procedure and require refiling of entries that are within the entry summary rejection period," it said.

Cambria said in a press release that it is pleased with CBP's efforts. “The industry should now know that U.S. Customs and Cambria are fully aware of the ways that importers are undermining the AD/CVD duties that were imposed to stop illegal trade violating U.S. trade law and level the playing field for American companies like Cambria,” Marty Davis, CEO of Cambria, said. “The enforcement actions that Customs has taken are just the tip of the iceberg, because we are bringing more evidence of evasion to the agency’s attention so that they can take additional enforcement action against these illegal evaders."