CBP Issues Interim Measures in Wood Cabinets and Vanities Case

CBP is setting interim measures against six companies for possible evasion of the antidumping duty and countervailing duty orders on wooden cabinets and vanities from China. According to a March 10 notice, CBP has determined that there is reasonable suspicion that Uni-Tile, Durian, Kingway, Lonlas, Maikai, and Top Kitchen evaded AD/CVD by transshipping covered merchandise through Malaysia.

The Enforce and Protect Act investigation followed an October 2021 complaint by the American Kitchen Cabinets Alliance (AKC) and covers the period Nov. 10, 2020, through Nov. 10, 2021. According to CBP, evidence provided by AKC reasonably suggests that the six importers are evading the orders by importing Chinese-origin wooden cabinets and vanities into the U.S. that had been transshipped through Malaysian firms LLWF Cabinets and Stone, MSW Building Supply, and South Wales Furniture.

CBP said there's evidence that South Wales is participating in the evasion scheme. An Experian Corporate Report ordered by AKC indicates that South Wales is a corporate shell that transships Chinese-origin wooden cabinets and vanities covered by the AD/CVD orders through Malaysia, CBP said. Evidence in the report includes conversations with a South Wales executive who promised the company could transship wooden cabinets and vanities through Malaysia without it being traced to China, it said.

In addition, AKC provided trade data from a subscription service for each of the importers. That data indicated that each importer made several shipments of products described as wooden cabinets and vanities and shipped from MSW, LLWF or South Wales with a Malaysian address, CBP said. AKC provided International Trade Commission DataWeb information that indicated that U.S. imports of Malaysian wooden cabinets and vanities surged shortly after the preliminary imposition of AD/CVD on wooden cabinets and vanities from China in 2018, CBP said.

In their responses to CBP information requests, importers provided incomplete responses with multiple discrepancies, CBP said. CBP found that photos showing manufacturing equipment in Malaysia appear to have been "staged," with no evidence of use. In addition, the importers failed to provide complete production records, including raw material purchase orders, commercial invoices, transportation documents and proof of payment; container load plans from each raw material manufacturer, including the dated receipt and signature of receipt for raw materials; foreign customs documentation for raw materials, if they are imported; complete factory production records; and a demonstration as to how the manufacturer ties the raw materials to the finished products, along with other import documentation for raw materials specifically requested by CBP, the agency said..

CBP conducted preliminary onsite visits to companies in Malaysia where officials found various issues at the addresses provided, including lack of visible manufacturing activity, lack of facilities large enough to manufacture stated quantities, and buildings that did not match production photos supplied by the importers, it said.

CBP is ordering suspension of liquidation for each unliquidated entry of covered merchandise entered on or after Dec. 3, 2021, the date of the initiation of the investigation. The agency is also extending the period for liquidating each unliquidated entry of merchandise that entered before Dec. 3, 2021.