CBP Announces EAPA Investigation, Interim Measures, on Chassis With Subassemblies From China

CBP announced that it has opened a formal Enforce and Protect Act investigation into whether Zinus evaded antidumping and countervailing duty orders on chassis and subassemblies from China and has imposed interim measures, according to an Oct. 25 notice. The investigation was launched on July 20, following allegations by CIMC Intermodal Equipment LLC (CIMC) that Pitts Enterprises, Inc., classified imported chassis as products of Vietnam, without disclosing subassembly components of Chinese-origin.

CIMC provided an affidavit attesting that several inspected chassis imported by Pitts had Chinese-origin parts without markings. CBP did not disclose the details of the affidavit. CIMC also cited a published article, claiming it anticipated that Pitts would continue to import chassis with subject Chinese-origin components into the U.S. even after the AD/CVD orders were enacted.

CIMC claimed Pitts failed to properly segregate the covered Chinese-origin axles and landing gear legs on its import documentation. Pitts would need to segregate the chassis subassembly components on their own lines of the Commercial Invoice Entry Summaries, with per-line subheadings, prices, dutiable value, countiy of origin, AD and CVD case numbers, cash deposit rates, and entry type, to properly import chassis with Chinese-origin axles and landing gear legs, which CIMC said that Pitts failed to do.

CBP decided evidence provided by CIMC, "company specific shipment data ... images of inspected chassis, business entity information, company profiles, media links, and sworn declarations from affiants with industry specific knowledge, such as production practices, affiliations, and a firsthand account of a chassis inspection," reasonably suggested that Pitts had evaded the AD and CVD orders by evasion.

CBP announced that it had imposed interim measures that suspended the liquidation of each entry that entered after July 20, extended the period for liquidating subject merchandise that entered before July 20, 2022, and may take additional measures as deemed necessary, including requiring a single transaction bond or additional security or the posting of a cash deposit with respect to such covered merchandise. In addition, 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 procedures. CBP will also evaluate Pitts’ continuous bonds to determine their sufficiency.