CBP Applies AFA to Find Paper Importer Evaded AD/CV Duties in EAPA Investigation

CBP made a final determination that Amlink Sourcing evaded antidumping and countervailing duties on lightweight thermal paper from China (A-570-920/C-570-921) by misdeclaring subject goods as not covered by any AD/CVD orders and, as a result, failing to pay cash deposits on the merchandise.

The Paper Receipts Converting Association filed the Enforce and Protect Act allegations in 2020, claiming Amlink imported lightweight thermal paper manufactured in China by Shenzhen Likexin Industrial Co., Ltd., but declared the entries as “type 01” not subject to duties, rather than as “type 03” entries for AD/CVD merchandise.

CBP’s affirmative final EAPA determination comes as a result of the application of adverse facts available for Amlink and Likexin’s non-cooperation. After initially finding a reasonable suspicion of evasion and suspending liquidation for Amlink’s entries, CBP sent requests for information to both Amlink and Likexin. Likexin failed to respond at all, and Amlink’s responses contained discrepancies, CBP said.

For example, “the shipment inspection report for blank thermal paper had a production date of July 2, 2019, but the invoices had exportation dates in January, March, April, May, June, July, and September 2020. For each entry, there is no clear direct linkage between the information included in each shipment inspection report, bill of lading, commercial invoices, and entry summary,” CBP said.

And Amlink admitted that, at least for a few of its entries, some of the merchandise should have been declared subject to AD/CV duties, CBP said. CBP, applying AFA, extended its determination that the merchandise should have been declared subject to AD/CVD to all of Amlink’s entries.

According to CBP, “Amlink argued that it did not participate in any fraudulent scheme and did not intentionally, purposefully, knowingly, or negligently engage in evasive conduct. It further argues that it does not have much experience or knowledge regarding the importation of thermal paper, nor does it sell products to U.S. customers,” CBP said.

But as importer of record, Amlink was charged with a “burden to exercise reasonable care to make entry and provide such necessary information to CBP to enable it to assess duties,” CBP said. “Amlink’s argument that claim[s] that it did not sell merchandise to U.S. customers does not absolve it from the requirements imposed on importers of record under section 1484,” it said.

"CBP will suspend or continue to suspend the liquidation for all entries imported by the Amlink that are subject to EAPA investigation 7523, for the period of investigation, September 28, 2019, through August 23, 2021, and continue suspension until instructed to liquidate these entries,” CBP said. Entries subject to the investigation will be subject to the China-wide rate for the AD duty order, and the “all others” rate for the CV duty order.