CBP Finds Evasion in EAPA Investigation on Iron Soil Pipe From China

Three importers evaded antidumping and countervailing duties on cast iron soil pipe from China (A-570-079/C-570-080), CBP said in a Sept. 6 Enforce and Protect Act determination released in recent days. In EAPA consolidated case 7621, CBP found that Granite Plumbing Products, Little Fireflies International and Phoenix Metal entered soil pipe from China covered by the antidumping and countervailing duty orders by transshipping through Cambodia.

The investigation followed a July 2021 allegation by the Cast Iron Soil Pipe Institute. CBP found that the allegations reasonably suggested that Granite Plumbing and Little Fireflies had entered covered merchandise through evasion and initiated an investigation in September 2021. CBP says that Little Fireflies provided inadequate responses to questionnaires issued following the initiation of the investigation. CBP then issued a notice of action against Little Fireflies, to which the company again responded with inadequate information, according to CBP.

In addition to Little Fireflies' failure to provide documentation, CBP also noted connections between Little Fireflies and Dalian Metal, a Chinese company, established in EAPA case 7454. Granite Plumbing said in its questionnaire response that it ordered soil pipe from companies found to be evading orders in case 7454, Lino and HiCreek, but listed Little Fireflies as the pipe exporter. Granite Pluming also included raw material documents provided by the parties investigated in case 7454 and dated prior to the period of investigation.

After CBP issued its notice of investigation in December 2021, the Cast Iron Soil Pipe Institute submitted a new allegation that Phoenix Metal was also evading the orders on soil pipe from China. CBP found that Phoenix Metal listed the same shipping address as HiCreek’s Cambodian facility, which led CBP to suspect that Phoenix Metal was a front company for HiCreek. Phoenix Metal's owner controlled two other entities that were implicated in transshipment in EAPA case 7454. EAPA Investigation 7708 was initiated in February and subsequently consolidated into case 7621. In March, CBP issued notices of consolidation and imposed interim measures (see 2203310044).

CBP concluded that Chinese-origin soil pipe was undervalued and/or transshipped through Cambodia into the U.S. as type 01 entries that evaded the payment of AD/CVD duties. CBP will suspend entries subject to this investigation until instructed to liquidate. For entries previously extended in accordance with the interim measures, CBP will change those entries to type 03 and continue suspension. CBP will continue to evaluate the continuous bonds from Granite Plumbing, Little Fireflies and Phoenix Metal, and will require single transaction bonds as appropriate.