CBP Announces EAPA Investigation, Interim Measures, on Imported Quartz Surface Products From China

CBP has initiated a formal Enforce and Protect Act investigation on whether Vanguard Trading Company evaded antidumping and countervailing duty orders on quartz surface products from China and imposed interim measures, according to a Nov. 17 notice. The investigation began Aug. 11, following an allegation by Cambria Company LLC, which suggested that Vanguard had evaded the AD/CVD orders by failing to declare that the slab products it is importing are actually QSP from China -- specifically, that a brand of engineered countertop surfaces named Lucciare is labeled as “artificial marble” upon import when it should correctly be classified as QSP, subject to the orders.

Lucciare is a brand of engineered countertop surfaces that is a registered trademark of a company named Ciotolo, Inc. Leadership of Ciotolo is linked with Ameri Home Designs (AHD) and with Vanguard itself. Cambria claimed that "a known Chinese producer of QSP," (redacted from the notice), is in fact producing the Lucciare product and provided evidence of personnel associated with both companies. A second supplier, which is listed in the trade data as the producer of the “artificial marble” being imported is likely only a logistics company, Cambria said. The Lucciare product called “FriTech” is not a completely new and different material from QSP as advertised, Cambria said. According to the patent, the products are primarily made from fritted sand, which has a silica content ranging from 60% to 80%, and quartz powder, which is is pure silica, meaning that the imported products were likely covered by the AD/CVD Orders

CBP found that the allegation reasonably suggested that the importer may have engaged in attempts to evade the AD/CVD orders by failing to declare the merchandise imported as covered. Documentation reasonably available to support these claims, including trade data showing shipments from an unnamed supplier to Vanguard, evidence that the imported products are likely produced by a separate supplier, documents linking that supplier to Lucciare, and Lucciare to AHD. CBP therefore determined that reasonable suspicion exists that Vanguard imported covered QSP and imposd interim measures on Vanguard’s imports. CBP will suspend the liquidation of each entry that entered on or after Aug. 11, extend the period for liquidating each unliquidated entry that entered before that date, and take such additional measures as the CBP commissioner determines necessary, including requiring a single transaction bond or additional security or the posting of a cash deposit. In addition, CBP will require live entry and reject any entry summaries that do not comply with live entry and will require refiling of entries that are within the entry summary rejection period.